Question for Fractional Pros

[ClassG]

A question for those who have dealt with the legalities of Fractionals vs. 135s (and 134 1/2's):

I'm currently working for a Part 135 operator. Owner owns a PC12 under company A and leases it to the 135 (company B).

Wants to sell shares (fractional ownership) in the PC12.
Believes potential owners will want to take advantage of the tax incentives by "owning" the aircraft, paying a management fee and a per hour INSTEAD of just chartering it for personal and corporate travel.

Wants to acquire and sell shares in an additional PC12 to be added to our 135 and then used the same way.

The question: Have your ever dealt with this structure of ownership before, and what concerns would "WE" as a 135 have and "I" as the principal pilot have? I can't come up with any reasons at all why it wouldn't be legal to structure this way, then conduct all our flights under Part 135 (instead of 91 subK) anyway. Am I missing something?

Thanks.

Class G.

 

[350DRIVER]

When you are operating the PC12 for charter purposes then the part 135 regulations then are applicable. If you are flying the owner/company for business or pleasure purposes other than charter then it is simply a flight that is conducted under part 91.


If "Company A' owner chooses to sell shares of the aircraft out then you will be 91 when those owners are onboard the aircraft.

Once upon a time a former company that I was flying for at the time had a owner do a similar thing with a King Air 100 that was on our 135 ticket at the time who sold shares out to 3 others and each time one of those "partial" owners would fly in the aircraft it was a 91 flight. When this aircraft was chartered out then the flight was conducted under 135.


rather simple...

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