Bonus Depreciation Is Coming 🛩

Trump Tells Congress: 100% Expensing

As many expected, the Trump administration announced in his address to Congress this week that he wants 100% bonus depreciation passed as soon as possible. With Republicans in control of Congress, it’s likely to happen. It would be retroactive to January of 2025 and a boon for aircraft buyers and sellers.

…but the trade wars have begun.

After a short delay for negotiations, 25% tariffs on Canada and Mexico have been put back in place this week, plus a 10% tariff on Chinese goods. In response, the Premier of Ontario threatened to cut off energy and oil supplies to North America, which would trigger major increases in Jet A fuel and other costs, particularly in the Midwest. The stock market plunged earlier in the week with the news as investors expect cost increases in many major sectors.

Southwest Announces its first Major Layoff in its History

“Southwest experienced great success adhering to one business model for a bunch of years, and then the world around them changed and they didn’t really adapt,” said David Neeleman, founder of JetBlue and Breeze Airways. The firm is closing crew bases and laying off 1750 employees at headquarters as it battles to regain momentum and the trust of activist investor firm Elliot Investment Management, which recently took 5 board seats.

The future for eVTOLs probably won’t be in the USA

After failing to meet goals of “commercialization in 2025”, Joby and other eVTOL manufacturers seem to be pivoting to the Middle East for life support. The Air Current published a story this week about the manufacturers' plans to focus more on defense contracts, sales to individuals, and testing flights in Abu Dhabi and Dubai.

HondaJet Echelon Production Begins

HondaJet has officially begun assembling the first test unit of its coast-to-coast light jet: Echelon. Hoping for a 2028 certification, the company will begin test flights in 2026 and intends on being “the first light jet with a range capable of nonstop transcontinental flight across the United States….Developers expect it to offer 40% better fuel efficiency than some midsize jets. It is expected to have a maximum range of 2,625 nautical miles, far enough to connect it between New York and Los Angeles.” (Global Air)