Since 1993, the FAA has prohibited executives from reimbursing their companies for personal use of company aircraft. On December 30th, 2010, the FAA Office of Chief Counsel issued a change to Part 91.5019b)(5), the “Schwab Interpretation.” Some, but not all personal travel by executives now meets the conditions for reimbursement.
Aviation Insurance
January 4th, 2011
The complex relationship between insurance underwriters, reinsurers and the financial markets explains why premium costs often fluctuate wildly even in years where insurance claims are low. Since you can’t control the financial markets, what can you do to control insurance costs? Get your broker and/or underwriter to visit your operation.
Evolving Medical Standards
November 30th, 2010
This past April, the FAA began to consider special issuance of medical certificates to pilots with mild-to-moderate depression who have been treated for at least 12 months on one of four antidepressant medications. The FAA’s decision to allow pilots to take drugs such as Prozac was a demonstration of political bravery. The FAA carefully constructed a case for the change while also building consensus among industry groups.
Charter Broker Disclosure Requirements
November 9th, 2010
Congress has recently passed the “Airline Safety and Federal Aviation Administration Extension Act of 2010.” In one section of the bill, there is the requirement for “Disclosure of Air Carriers Operating Flights for Tickets Sold for Air Transportation.” Congress has beefed up the disclosure requirements so that a traveler knows the true identity of the carrier before buying a ticket. However, the law may impact air charter customers more than the airline customers it was created to protect.
Managed Charter 2.0
August 6th, 2010
For decades, FAR Part 135 charter operators have used their aviation expertise to manage aircraft for companies that own jets for their own use. The now-common practice of placing these managed corporate aircraft on a charter company’s operations specifications for charter by third parties evolved from this initial management service. This arrangement, originally called piggybacking, radically changed passenger jet charter. But,things have changed.
One Accident, Two Stories
June 1st, 2010
On Aug. 1, 1999, a 1968 Cherokee six crashed shortly after takeoff from an airport in Ohio, killing the pilot and three passengers and seriously injuring a fourth passenger. The NTSB version of the crash found the pilot’s failure to maintain sufficient airspeed and proper trim as the cause. However, more than a decade after the accident, a jury has reached a very different conclusion, awarding an $88.7 million verdict against Avco Corp. This case serves as an example of how the courts have dealt with the General Aviation Revitalization Act of 1994 (GARA). Why the gap between the NTSB’s assessment and the findings of a jury?
Flying Political Candidates Under Part 91
May 1st, 2010
The Federal Election Commission has now revised its regulation to interpret and explain the “Honest Leadership and Open Government Act of 2007″. If your company wants to give a Senator a ride on the corporate jet, the first step is to review FAR Part 91.321.
Small Business Aircraft
April 2nd, 2010
There are great tax advantages for small aircraft bought for business use. Business aviation does not always mean business jet. You can also show the FAA that your small aircraft is a legitimate business tool. Join the NBAA and get a copy of its small aircraft exemption for Part 91.501. Timesharing, interchange, joint ownership with a shared crew and other business flexibilities are available to small aircraft operators.
NTSB Updates and Expands Reporting Requirements
March 2nd, 2010
The NTSB has updated Part 830, effective March 8, 2010, increasing the number of reportable incidents to include glass panel failures. These are the first significant changes to Part 830 in more than a decade. There is now a requirement for reporting incidents involving engines, propellers and rotors and a special “air carrier only” section. While reviewing these changes, pilots and flight operations managers ought to review the definition of accident along with 830.5 Immediate Notification process.
Aircraft Repair Station Security
January 1st, 2010
The Notice of Proposed Rulemaking for repair station security was issued by the TSA in November 2009. The proposed rules would require repair stations to adopt and carry out a “standard” security program.
