Political contribution flights

[cvsfly]

We need some quick advice. Our company as an LLC is primarily a Part 135 company and we also do Part 91 for the owner, his family and friends. The owner likes to extend himself to the state governor and other political candidates and incumbants. Sometimes we have chartered and sometimes these have been offered as freebie flights. In the past I have always operated and documented these under 135 rules just to cover my butt because I was unclear of the possible implications. Now we have a request for a freebie flight that will take us over our 135 duty day. So I'm unclear with the arguement that since we are receiving no direct compensation for this flight is it Part 91 or the fact that the owner will record the flight as either a contribution or at least write it off for operating cost and utilization for tax purposes, is it more on the 135 side. If we were strictly 91 the we could refer to 91.321 - and then it might not even apply since we are not requesting any compensation. How does the IRS look at the use of aircraft for "friends" of the owner as opposed to a corporate officer when no money changes hand, but the owner does defer/writeoff the utilization (SIFL accounting formula) cost? What documentation, other than as noted on a flight log, if any is required to differentiate 91 from 135 flights?

 

[cvsfly]

Spoke with the FSDO. No conflict. Part 91 OK. The IRS may be another issue.

 

[501261]

CVS,

This is a much more complicated issue than simple 135 v 91. Your governor MIGHT have already violated federal campaign contribution laws by accepting a "freebie" flight. These campaign laws go both ways, the governor can be made to look bad, but your company might also be committing a felony.

In my opinion your governor is exercising extremely poor judgment by accepting these "freebie" flights. Once upon a time when I was flying then-governor Bush around we always made sure it was strictly 135 and that we got paid accordingly.

FAR 91.321 was written so that private companies (non 135) could fly around elected officials. Yet these elected officials need to show that they "paid" for these flights, so that they're not being considered getting an "illegal kickback".

You really need to discuss this with corporate council and verify that ALL the relevant laws are not being broken (i.e. FAR's IRS, Federal Campaign Laws).

Since I don't know a thing about the last two I will only comment on the first. I think you can legally fly this flight. Since you are conducting this flight under 91 duty and flight time limitations do not apply. You can even charge (and really should charge) for these flights under 91.321. A simple SIFL charge should make everybody happy.

Again these are complicated issues that go way above the heads of us simple ATP's.


Good luck