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Reselling charter service?

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Well-known member
Nov 27, 2001
Opinions (supported by regs if possible). Can a non-certificated non-aviation company charter for the sole-use of an aircraft (i.e. for 100% of the aircraft availability) and then sell off some or all of that capability to other non-certificated non-aviation companies?

The scenario here is really more of a sharing agreement than open sale if that makes a difference. Company X contracts for 100% of an aircraft knowing that they only need a lesser percentage. They offer to "share" the service with Company Y with direct payments from Company Y to Company X. Each company schedules the flying as if they were a combined entity under some rules set up to apportion use. The charter provider retains operational control under their operating certificate, except that payment from Company Y goes to Company X and not the charter operator. The charter operator does not participate in setting the rates for Company Y use.
That area is so gray it is almost black. The only opinion the hold any weight here is one issued by FAA legal. In my opinion, this idea is not going to fly. I realize that there are those out there already doing it, but it looks to much like you are holding yourself out as a carrier.
Lots of people do this and the FAA woud follow the money and if the certificated company was not collecting the money then they will question who is really "controlling" the aircraft. The certificate holder can say they still have operational control over the pilots and the dispatching of the aircraft but if you were sitting in Washington explaing a crash I believe others would see if differently (i.e Platnum Jet Challenger crash in TEB). The guys running that show have paid hundreds of thousands in fines not to mention legal fees and are currently back in court fighting state charges.
Maybe you should just set up a holding company and have each company purchase a portion of the company. Keep in mind, there can not be a profit taken as that would constitute 91K operations.
Is this not what Marquis Jet does? If I'm wrong, enlighten me.

Big difference between Marquis and the scenaro presented here. Marquis does not charter their aircraft from NJA and then re-sell it....they own the aircraft and pay NJA to operate them.

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