Private pilots must pay their fair share
It seems an innocent question: Would you, a private pilot, like to fly passengers to a destination they need to visit? In turn, those passengers would pay for the cost of the fuel used on the flight and spring for your dinner later. If a warning light just went off in your head, you're one of the few savvy pilots who understand that this is not an innocent situation.
Why? A call to the AOPA Pilot Information Center (800/872-2672) with this question will result in this answer: "Any benefits to the pilot will be considered compensation," said Rodney Martz, an AOPA aviation technical specialist. Compensation paid — in any form — to a private pilot can be interpreted as a violation of Part 135 of the Federal Aviation Regulations. Part 135, which governs commercial operations in light aircraft, requires that a person obtain an air taxi/commercial operator certificate to carry persons or property for compensation or hire.
But do a contribution to the cost of fuel and a nice dinner constitute compensation? "A pilot can only share the costs if he or she was intending to take the flight anyway," said Martz. "A private pilot cannot be compensated in any way for a flight, and any personal benefits could be considered compensation."
The FAA interprets compensation in the broadest sense. Compensation is not only the payment of money; it is the receipt of anything of value and even the mere expectation of some benefit. The FAA even considers that simply building up flight time is compensation to the pilot when the pilot does not pay the cost of operating the aircraft.
Passengers on a flight with a pilot who was already planning to take the trip for his own purposes can contribute equally with the pilot to the direct operating costs of the flight. This includes the gas and oil used, the landing fee, and the rental cost if the pilot does not own the aircraft. Passengers may not contribute to the pilot's indirect expenses incurred because of the flight, such as the airplane's annual inspection, oil changes, or hangar rental. "These are rules that are broken daily by pilots and passengers who do not realize that they are in violation," said Kathy Minner, an AOPA aviation technical specialist. "Some pilots go their whole lives not knowing, or call us after someone — perhaps an FAA official — raises the question to them."
"When I fly with another pilot, we split the costs equally and it's a natural situation," said Brad Williams, AOPA 1302822, a 200-hour private pilot from Hedgesville, West Virginia, who regularly rents aircraft for recreational and occasional business-related travel. "However, sharing expenses helps others fly who wouldn't be able to, but you've got to be careful, legal, and be fair."
A classic example of the confusion over what a pilot can be compensated for is seen in business travel. Under the FARs, a private pilot may legally fly on business but may only act as pilot in command of an aircraft in connection with any business or employment so long as the flight is only incidental to that business or employment. And, not only must the flying be incidental to the pilot/employee's employment, but must also be incidental to the business of the employer.
Passengers are usually the ones who are surprised to learn that contributing to the expense of a flight can be considered an FAR violation, but new pilots are often caught off guard too. "It surprised me when I first started my flight instruction," said Bert Davis Jr., AOPA 1367973, a freshman at Shepherd College in Shepherdstown, West Virginia, and a newly certificated private pilot. "Learning about all the different ratings lets you know what you can and cannot do." Davis is planning to obtain his instrument rating and then his commercial. "I eventually want to fly as a career; I want to get paid to do what I like to do."
The aviation specialists on the AOPA Pilot Information Center can answer any questions you may have concerning this often-confusing situation. Additionally, AOPA has produced several publications and can provide a number of informative packages that outline the regulations concerning shared expenses. This includes AOPA's business justification package, Should an Employee Use a Privately Owned Airplane for Business Purposes, which includes information on potential liability; A Pilot's Guide to Reducing the Cost of Flying, which offers cost-cutting ideas for private and commercial pilots; and Part 91 vs. Part 135 Operations, which provides detailed information on the two sets of regulations that govern flight and commercial operations.
AOPA's Legal Services Plan is also available to provide assistance in circumstances such as IRS inquiries into business use of privately owned aircraft.
As an AOPA member, you have access to the best resource anywhere for information and answers for pilots. The AOPA Pilot Information Center gives you direct access to specialists in every area of aviation. The center, 800/USA-AOPA (800/872-2672), is available to members from 8:30 a.m. to 6 p.m. Eastern time, Monday through Friday. Information is also available on the Web (www.aopa.org) .
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