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SHARING DETAILS
Fractional owners, jet card holders, etc. are free to share flights with others or permit others to use their flight hours, in each case, under a "time-sharing agreement."

FAR Part 91.501(c)(1) describes a time-sharing agreement as, "An arrangement whereby a person leases his airplane with flight crew to another person, and no charge is made for the flights conducted under that arrangement."

However, under Part 91.501(d), certain specific expenses may be charged in a time-sharing arrangement. As cited by the National Business Aviation Association (NBAA), these "direct costs," as defined in FAR 91.501(d), include:
  • Two times the cost of fuel, oil, lubricants and other additives
  • Travel expenses of the crew, including food, lodging and ground transportation
  • Hangar and tie-down costs away from the aircraft's base of operation
  • Insurance obtained for a specific flight
  • Landing fees, airport taxes and similar assessments
  • Customs, foreign permit and similar fees directly related to the flight
  • In-flight food and beverages
  • Passenger ground transportation
  • Flight planning and weather contract services
We have been advised informally by one fractional provider that, as a rule of thumb, the hourly rate charged by the provider may be used as an approximation of these direct costs. In addition, you may be reimbursed for federal excise taxes and any segment fees associated with such flights.

For FAA purposes, as long as the truth-in-leasing requirements are satisfied and the charges for transportation do not exceed the per flight amount specified above, a time-sharing agreement is considered noncommercial transportation and is permitted under Part 91.

You are strongly advised to consult with counsel and your provider in order to make certain that any remuneration on shared flights is handled appropriately.

For Charter clients, or flights designated under FAR Part 135, passengers can share the cost amongst themselves. The broker or plane provider cannot set this up in ANY WAY. The FAA will constitute this as being an airline and not legal. For more information please go to www.faa.gov or contact an aviation attorney.