llegal Charter?

[taters]

The plane I fly for a company is down for an inspection next week. One of the owners friends has graciously let us borrow his airplane(Bonanza) for a day as long as we put gas in it. I do recieve an annual salary for flying these guys around in the plane that they own but one of my freinds mentioned that this would be an illegal charter since I am still recieving compensation. Do I need to have my check docked or something?

 

[Mountain Troll]

no, this is not illegal charter. You are borowwing someone elses ac thats all. You being paid by your normal employer to fly them around on a different ac is not the defination of charter.

 

[kevin147]

Illegal Charter

I take it you are flying your company around Part 91?

I'm not sure the friend who is allowing you to "use" his aircraft can do this. He is receiving compensation for the use of his aircraft by your company buying the gas, there appears to be no "sharing of expenses" ala Part 91.

 

[avbug]

This is a ridiculously misunderstood subject.

If your friend was providing the aircraft and you worked for your friend, and your friend had operational control over the airplane, you would be approaching the point where a 135 certificate would be required.

You are able to accept compensation to fly your company personnel around, correct? You hold a commercial pilot certificate and are accepting a wage for flying your boss? You can do this; you are a commercial pilot, entitled to receive compensation. You can receive compensation for flying the airplane from A to B, while your boss provides the airplane and doesn't accept compensation from passengers or for carrying cargo, from one point to another.

If you flew your regular airplane for your boss, the company airplane, and your boss invited a passenger to go from A to B and charged a fee, that would be an illegal charter. If your boss accepted a package to take from A to B for a fee, that would be an illegal charter. If your boss invites six of his best friends along and doesn't charge them, then it's not an illegal charter. You must consider who has operational control over the airplane (who provides it), and for whom do you work? If you work for your boss, and he has operational control, and the airplane is used only for his business, without charge for passengers or cargo, then you're legal.

Your airplane is down. You cannot fly it. Your boss obtains another airplane to use...the situation hasn't changed. He is still the operator of the airplane, he still has operational control, he still arranges the flights, provides the airplane, and you still work for him. Same as before.

Let's pretend you work for someone else. Your boss either owns the airplane or leases it, but either way, has operational control. He hires you to come do some contract flying for him flying him from A to B with six of his friends. Still legal; you're a commercial pilot, and you may fly for compensation or hire. The aircraft is not being operated for compensation or hire, and you do not have paying passengers or paid cargo on board. You're legal, no different than before. The fact that your boss owns the airplane, or the fact that he's leasing the airplane is of little significance to you. It's your boss providing the airplane, and the airplane is not for hire. If the boss is paying someone else for the airplane, either lease payments or bank payments to own, it's not your concern, and this does not make the airplane a compensation or hire situation...the test here is if the airplane is being OPERATED for compensation or hire. It's not.

Okay, change again. You work for your friend. He pays you. He provides the airplane to your "boss." Your boss decides when to go and when to stay, but you're straying very close to a 135 operation here; when the airplane and pilot are being provided by an operator, the line of distinction between charter and not is blurred. You're doing a charter.

In this case, however, you work for your boss. He's obtaining an airplane for his purposes. He might pay for gas, he might provide sexual favors in return, he might sell his first born. It really doesn't matter for the purposes of legality with respect to issues of charter. Your boss is exercising operational control over the airplane, you work for him, and you're in good shape. Your boss can make whatever arrangements he wants, so long as he's renting or leasing the airplane for his own purposes, and he's not operating it for hire.

If you rent the airplane and then carry your boss, you're then receiving compensation for flying the airplane, and receivving payment for the airplane; a strong case could be argued that you're exercising operational control and that you're arranging the flights, and then it becomes a matter of you doing illegal charters. You don't want to go there.

The best arrangement is for your friend to lease the airplane to your boss. He can do it by the hour, by the day, month, whatever he likes. So long as your boss doesn't operate the airplane for compensationor hire, then the money he's paying to have use of the airplane isn't relevant.

 

[SFL Accipiter]

I have good news for you (assuming you're in the USA): your employers and their friends are living in a free country! If they want to lend their airplane to a friend, they absolutely can and may! In fact, I'll even take it a step further: if they want to "lend" that aircraft to someone at a profit... well... that's called renting! Flight schools do it every day!

You'd have to check with the owner's insurance policy, but that's likely the only problem (and it's really only a problem if there's an accident). However, as far as legalities are concerned, I'm fairly certain you don't even require insurance... not that that's a smart idea! Many insurance policies do cover these sorts of incidentals.

This kind of stuff happens everyday... If you're at all in doubt about this, by all means, call your local FSDO (the number is your AFD)! You'd be surprised how useful they can be ... and even more surprised to find they actually appreciate your call!

P.S. The pro-rata <quote> "sharing of expenses" ala Part 91. <end quote> is a private pilot requirement. As a commercial pilot, you don't have these limitations.

 

[avbug]

I have good news for you (assuming you're in the USA): your employers and their friends are living in a free country! If they want to lend their airplane to a friend, they absolutely can and may! In fact, I'll even take it a step further: if they want to "lend" that aircraft to someone at a profit... well... that's called renting! Flight schools do it every day!

They can, subject to the limitations of the type of operation in which the aircraft is used. They also share in the responsibility of maintenance under the part engaged, or type of operation. If indeed the airplane becomes used in a for-profit operation, the airplane become subject to additional maintenance requirements and inspections. Both the owners and operators share in this burden, and are responsible for ensuring it is done, and properly documented.

Again, it's a matter of operational control. If the person renting or leasing the airplane out, the lessor, retains operational control, then a 135 certificate will be required. More devils than one are in the details, free country notwithstanding.

 

[Lead Sled]

I would only add a couple of thoughts...
1. Check with the owner's insurance company. They may have something to say about this.
2. A dry lease is indeed a possibility, but these aren't necessarily simple or informal agreements and a copy of the agreement needs to be filed with the FAA. You'll probably want the assistance of an aviation attorney if you go this route.

None of these considerations are deal breakers, but you do need to make sure that your "i's are dotted and your t's are crossed".

LS

 

[svcta]

The original post clearly stated that the airplane was borrowed, they just put gas in it. I agree with Avbug 100% on this one. Borrow away!

I would, I suppose, check in to making sure that you were covered under a blanket qualification or as named pilot on the a/c's insurance. That seems like sound logic to me. Otherwise, I don't see the point in getting wrapped around the axle over the borrowed airplane.

 

[ekuflyer]

2. A dry lease is indeed a possibility, but these aren't necessarily simple or informal agreements and a copy of the agreement needs to be filed with the FAA. You'll probably want the assistance of an aviation attorney if you go this route.
LS

The "truth in leasing" (91.23) is only for Large aircraft (over 12,500 GW). Since he is talking about a piston single, then a verbal agreement or one in writing is all it will take for a "Dry Lease".

 

[bizjet800]

Very good comments Avbug. All I can add is sometimes the pilot is "out of the loop" on some of these matters. (I am speaking in general because it sounds like this pilot is well informed and nothing illegal is intended) For example, what if the boss decides to "lend" his aircraft to someone. He tells you, the pilot, that this is a friend and it's not in any way a charter. Would the pilot still be liable if in fact it was deemed a charter if the FAA stepped in?

It will be interesting to see when all the dust settles from the TAG/AMI mess if any crews get violated.