Regfractrev

FAA proposes revisions to Fractional Ownership Rules

The issue:

On July 18,2001, the Federal Aviation Administration (FAA) issued a Notice of Proposed Rulemaking (NPRM) proposing revisions to Parts 13, 61, 91, 119, 125, 135 and 142 of the Federal Aviation Regulations (FARs).ï¿½ The FAA states that the proposed revisions are intended to better define fractional ownership programs, provide fractional ownership operations with an equivalent level of safety to that of on-demand charter operations, andï¿½ provide on-demand charter operators with alternate means of compliance for certain commercial operations. ( It should be noted that a Fractional Ownership program, as proposed, does not include traditional flying clubs and partnerships/co-ownerships who own and operate typical small general aviation aircraft.)ï¿½ This proposal also sets a new precedent in the fact that, for the first time, the FAA will require an operations manual for certain Part 91 operators similar to that mandated for Part 135 air carrier operators.

The importance to our members:

Many times, changes to the FARs intended for a specific type of aircraft operation can have an impact on other operations.ï¿½ Though most AOPA members do not operate fractional ownership or on-demand charter aircraft,ï¿½ AOPA is concerned that these proposed rule changes may have an adverse impact on that segment of our membership involved in small aircraft multiple ownership programs.

Significant provisions:

In the NPRM, the significant FAA proposed Fractional Ownership and On-Demand rule changes are:

Part 61
- Addresses the exceptions to the Recent Flight Experience requirements applying to Part 121, 125, 135 operations and for any aircraft requiring more than one crew member.ï¿½ The proposed changes are intended clarify existing alternatives and proposes other alternatives.
Part 91
- Creates a Subpart K ï¿½ Fractional Ownership Operations which includes:
- - Five criteria defining a Fractional Ownership Program regulated by Subpart K
  - Requirement for an operations manual
  - Additional passenger awareness requirements
  - Additional IFR weather minimums
  - Use of cockpit voice recorders
  - Use of a drug testing program
  - Additional flight crew / crewmember experience and training requirements
  - Hazmat training requirement
  - Additional aircraft maintenance requirements
- Amends Subpart F - Large and Turbine Powered Aircraft to include all aircraft under a fractional ownership program, not just Large Turbine Aircraft.
- Intent to clarifies and lend some relief under Subpart F regarding Overwater Operations.
- Intent to add clarifying definitions of those terms used under Subpart F regarding fractional ownership programs including requirements of a fractional program, operational control issues, and management responsibility.
- Adds runway length requirements for Large Turbine aircraft fractional ownership operations that will only permit landing on a runway that will allow a full-stop landing within 85% of the effective length of the runway being used.
Part 135
- Incorporates the same relief under Part 91 Subpart F Overwater Operations to Part 135 operations.
- Amends IFR minimums
- Amends Runway Length requirementsï¿½ still retains the ï¿½60% ruleï¿½ for all runways at a given airport except that the on-demand operator may use a runway that meets 85% of the aircraftï¿½s calculated full-stop distance provided that it is the most favorable runway (wind conditions, runway surface conditions, etc.)
Part 13
- Amends section 13.19 to allow the for the treatment of the revocation and management specifications of a fractional ownership program to be analogous to similar FAA certificate action.

AOPA position:

After a more thorough review of the NPRM, AOPAï¿½s Government & Technical Affairs division still believes that it should not have an adverse impact on its members who do not own or operate fractional ownership program aircraft.ï¿½ It also appears that the FAAï¿½s stated intent that the NPRM is to assure that fractional ownership programs operate at a level of safety equivalent to ï¿½on-demandï¿½ charter commercial operations is valid.ï¿½

However, AOPA is concerned about the future impact of the NPRM in other areas not specifically addressed in the NPRM and submitted comments to the FAA addressing these concerns-

AOPA submitted a recommendation to the FAA addressing small aircraft multiple ownership programs that do not provide for professional pilot services but otherwise meet the currently proposed five elements that define a Subpart K fractional ownership program.ï¿½ï¿½ AOPAï¿½ recommended that a sixth criteria be added establishing the requirement that a professional flight crew be provided by the fractional ownership program manager.ï¿½ This sixth criteria would effectively exclude those small aircraft multiple ownership arrangements that were not intended to be covered by this proposed rule but otherwise meet the five proposed criteria.ï¿½

AOPA submitted a recommendation that Subpart K further delineate flight crew requirements reflecting the different operational demands for other types of aircraft.ï¿½ Though the NPRM allows the FAA Administrator to establish individual flight crew requirements for each program, AOPA feels that the establishment of specific alternate flight crew requirements Subpart K is necessary.ï¿½

AOPA stated in its comments that any security mandates for Part 135 operators also apply to Part 91 Subpart K operators due to the operational similarities between Part 91 Subpart K and Part 135.ï¿½ï¿½ This NPRM was developed and subsequently published for public comment prior to the tragic events of September 11 ^th and, thus, did not envision the current aviation security concerns.ï¿½

ï¿½Status:

ï¿½ AOPA submitted formal comments to the docket within the extended comment period.