On March 28, 2006, the FAA published a Final Rule amending 14 CFR Part 375 to exempt certain business operations of U.S.-registered foreign civil aircraft from being treated as commercial air operations. The rule change was prompted by a petition filed by the NBAA to recognize that the “economy has become increasingly global and businesses more multinational in character and structure” and that “[a] company that might own a U.S.-registered business aircraft should be able to operate that corporate aircraft in the United States for certain business purposes and be reimbursed for costs by a subsidiary without specific flight approval by the Office of Secretary under Part 375.”
The final rule delineates “certain types of operations by business aircraft operators using U.S.-registered foreign civil aircraft (such as carriage of a company’s own officials and guests, or aircraft time-sharing, interchange or joint ownership arrangements between companies) that do not constitute operations ‘for remuneration or hire’ and, therefore, do not require a DOT permit.” It also delineates the types of permissible operations that an operator may conduct and the types of expenses that may be reimbursed without the operator being required to obtain a DOT permit for each individual flight.
The FAA determined that the limitation on cost reimbursement for operations (such as carriage of a company’s own officials and guests, or aircraft time-sharing, interchange or joint ownership arrangements between companies), requiring individual permits, was problematic and that it was “in the public interest to accept cost reimbursement in these circumstances, without prejudice to any other interpretation of ‘remuneration or hire.”
The final rule is effective April 27, 2006. If you would like further information, you should review the final rule or you may contact David Modesitt, Chief, Europe Division, Office of International Aviation (X-40), U.S. Department of Transportation, 400 7th Street, SW., Washington, DC 20590; (202) 366-2384.
