One of the most confusing issues facing business and general aviation aircraft operators is the question of whether they can operate their aircraft solely under the Federal Aviation Administration’s (FAA) general, or noncommercial, operating rules, or whether they must also obtain certification as a commercial operator and operate their aircraft under the applicable commercial rules. This is especially complicated when their aircraft are leased to other parties. Although the FAA’s position on this question has been consistent since the 1970s, its enforcement of these rules has been sporadic. This has recently begun to change, however, as the FAA has recognized that it needs to pay more attention to this industry segment to ensure that the appropriate regulations are being followed.
This article provides an analysis for determining whether an operator who is conducting flights under the noncommercial rules may face an FAA administra tive or legal enforcement action because the FAA has determined that the operator should be complying with its commercial rules. The analysis primarily focuses on situations where an operator is conducting improper “dry” leasing but also touches upon other common forms of illegal charter.
