FAR Part 135 and 91 Operations and Compliance Attorneys

Safe navigation of all rules and regulations, on the ground and in the air.

Part 135 and Part 91 Operations and Compliance Attorneys

Confidently navigate FAA rules and regulations on the ground and in the air.

Business aircraft operations demand a careful understanding of FAA regulations to avoid costly missteps. Jetlaw helps aircraft owners, operators, and flight departments comply with all relevant FAA rules—furthering both safety and operational efficiency.

One frequently violated regulation is 14 C.F.R. Part 91’s limitation on reimbursement. Without proper legal guidance, aircraft owners may inadvertently create unlawful “flight department” companies by charging affiliated businesses, family members, or friends for flights. This can violates Part 91 and expose owners to significant legal and tax liabilities, including denial of insurance coverage.

Business aircraft are generally operated under 14 C.F.R. Part 91 or Part 135. Certain large aircraft are operated under Part 125. Some foreign aircraft may be operated under Part 375.

Jetlaw’s attorneys are nationally recognized in FAA operational compliance. We provide proactive legal strategies to ensure your operations under Part 91, Part 135, Part 125, or Part 375 are lawful, efficient, and aligned with your business objectives.

Part 91 – Flexibility, with Responsibility

Part 91 governs aircraft operations that are not for compensation or hire and is favored by corporate flight departments for its flexibility, reduced operating costs, and simplified regulatory oversight. However, in exchange for flexibility, Part 91 operators assume regulatory responsibility for their operations. This is referred to as Operational Control. Part 91 also strictly limits compensation and reimbursement for flights. Unless a specific exemption applies, a Part 91 operator may not charge or accept reimbursement for a flight. Violations often arise when companies attempt to recoup costs without meeting regulatory requirements.


Jetlaw advises clients on lawful options for structuring cost-sharing, such as timeshare agreements, dry leases, and registered joint ownership—ensuring FAA and IRS compliance.

FAR Part 135 (aircraft charter) – Governs Aircraft Operations for Compensation or Hire

Part 135 governs operations for compensation or hire, including air charter services. Operators must be certificated by the FAA and hold economic authority, often

through exemption, from the Department of Transportation (DOT). Aircraft may be leased to Part 135 certificate holders and flown under the Part 135 certificate holder’s operational control.

Having your aircraft operated by an air carrier under Part 135 includes:

  • Increased liability protection

  • Additional maintenance requirements

  • Specific crew training and rest/duty limitations

  • Additional regulatory requirements (managed by the air carrier, but which may result in increased costs to you)

Part 135 is ideal for businesses and individuals that that do not want to assume liability of their aircraft operations, who need to charge multiple unrelated entities for flights, or who want to offset the costs of aircraft ownership by allowing the air carrier to charter their aircraft to third parties. Part 135 also simplifies personal use issues and may help a company preserve its corporate aircraft deductions, even if the aircraft is used for substantial personal use and entertainment.

Jetlaw structures and negotiates these arrangements to minimize risk and maximize tax and operational benefits.

Dry Leases

A dry lease is a lease of an aircraft without crew. A dry lease allows an aircraft owner to transfer possession of the aircraft to an operator. The FAA closely regulates dry leases, including which parties may lease and operate an aircraft, when a lease must be filed with the FAA and carried onboard the aircraft, and what language must appear in the lease. Avoid The Flight Department Company Trap, read more here.

Jetlaw ensures your lease agreements meet FAA requirements, are properly filed, and contain required language to protect you during inspections or audits.

Time Sharing Agreements

Time sharing agreements allow one Part 91 operator to provide its jet and flight crew to an individual or company and receive limited reimbursement for use of the aircraft. Cost reimbursement is so limited that the operator may lose money on the time sharing flights. The aircraft operator may be required to collect and remit federal excise tax on the time sharing flight.

We help clients create compliant time sharing agreements and advise on federal excise tax (FET) collection and remittance.

Registered Joint Ownership

Registered joint ownership allows multiple parties to own and operate an aircraft collectively under Part 91.501(c)(1). This arrangement allows each joint owner to pay the fully-loaded cost of owning, operating, and maintaining the aircraft.

Our legal team advises on how to structure these arrangements to reduce costs while maintaining FAA and IRS compliance.

Interchange Agreements

An interchange is an agreement where one company leases its aircraft with crew to another company in exchange for equal time on the second company’s aircraft. No charge can be made except for the difference between the cost of owning, operating and maintaining the two jets.

Example:

Company A’s Jet – Hourly Cost (including ownership, operation, and maintenance) = $10,000/hr.


Company B’s Jet – Hourly Cost (including ownership, operation, and maintenance) = $7,000/hr.


Company A needs 15 hours on Company B’s jet.


Interchange Agreement: Company B must also have the option to use 15 hours on Company A’s Jet. Since Company B’s jet is more expensive to operate per hour, Company A may pay Company B up to $3,000 per hour to cover the operating cost difference. If Company B does not use its 15 hours on Company A’s jet, it loses them. No additional compensation may be exchanged if an unequal amount of hours are used.


Jetlaw helps you calculate, document, and defend interchange arrangements before the FAA and IRS.

Part 125

Part 125 governs U.S. registered aircraft with seating configurations of 20 or more passenger seats or a maximum payload capacity of 6,000 pounds, as long as common carriage (commercial operation) is not involved. Part 125 is a substitute for Part 91. Part 125 does not apply if the aircraft is operated under Part 135.

Jetlaw advises operators on whether Part 125 is appropriate and how to avoid inadvertently triggering Part 135 requirements.

Part 375

Part 375 governs U.S. foreign civil aircraft. A U.S. foreign civil aircraft is a U.S. registered aircraft that is owned, controlled, or operated by persons who are not citizens or permanent residents of the U.S. Part 375 limits aircraft operations and reimbursements between aircraft operators and aircraft users. These limitations are slightly different from Part 91.

Jetlaw helps clients determine whether Part 375 applies and, if so, how to comply—or structure operations to avoid unnecessary restrictions.

Why Jetlaw?

Jetlaw is more than an aviation law firm—we are industry insiders with unmatched legal depth in FAA compliance. We are pilots and we own and operate aircraft. Whether you are structuring ownership, sharing costs, or launching a charter operation, our attorneys bring clarity to complex regulations. We work directly with FAA headquarters and local FAA offices, helping clients resolve issues before they become violations.

When your aircraft operation depends on getting the law right, Jetlaw is the firm clients trust.

Kent S. Jackson

Managing Partner

Kali M. Hague

Partner & COO

Michael D. Kolich

Partner

C. Edward Young

Senior Attorney

Sarah R. Cummings

Senior Associate Attorney

E. Brittan Harrell

Associate Attorney

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