Part 91 and Chartered Flights

How you classify your usage is important.

Part 135

The Federal Aviation Administration (FAA) grants the authority to operate on-demand, unscheduled air service in the form of Part 135 certificate. Air carriers authorized to operate with a 135 certificate vary from small single aircraft operators to large operators.  If the aircraft owner is receiving compensation for the trip then it's considered a Part 135 flight.  This is FAR Part is for charter use.

Part 91

Think of a pilot flying his family and friends or a corporate aircraft flying executives to other sites.  The owner of the aircraft can not receive compensation for the flight.

Understanding how your accounting department is invoicing for any lease or timeshare is important. If personnel has changed, they may not be thoroughly versed on the subject and could be incorrectly processing invoices and payments.

 In fact, the FAA fined a Michigan company $3.3M for incorrectly charging “Timeshare” flights while under a Part 91 operation. To avoid this scenario, make sure you review the regulations surrounding Part 91 operations. 

The FAA could initiate an investigation if a complaint is filed regarding the illegal use of your aircraft.  Take time to review your aviation department’s documentation.

A few things to check are:

• Passengers on each flight

• Purpose of each flight – business or personal & for which entity’s business

• Invoices for each type of flight (the accounting department is not familiar with FAA regulations & new personnel may have unknowingly made changes which violate FAA regulations)

• Documentation you have for the aircraft – do those leases and timeshares match the facts.

This information is for casual reading and should not be considered legal advice. I’m not an attorney so please consult with a professional attorney for further information.