The FAA's Safe Air Charter Team

The FAA's Safe Air Charter Team is a collaborative safety campaign with FAA Flight Standards' Special Emphasis Investigation Team, the FAA Safety Team, and the National Air Transport Association. Click here to view the full Safe Air Charter YouTube playlist.

Private pilots may neither act as pilot-in-command (PIC) of an aircraft for compensation or hire nor act as a PIC of an aircraft carrying persons or property for compensation or hire, pursuant to 14 CFR (Code of Federal Aviation Regulations FARs). To meet the operational requirements, the pilots must be employed (as a direct employee or agent) by the certificate holder with operational control of the flight, e.g., a part 135 certificate holder, or must herself or himself hold a certificate issued under 14 CFR part 119.

A dry-lease agreement is an aircraft leased with no crew. Whenever you pilot an aircraft subject to a dry-lease agreement, you should consider the following:

Is it truly a dry-lease agreement whereby the lessee, in practice and agreement, has operational control in accordance with AC 91-37B and the Federal Aviation Regulations? If not, then flights operated under this agreement may be illegal charters and you, the pilot, may be in violation of the FARs for those flight operations.

Are you as the pilot also providing the aircraft involved in the dry-lease? If so, you may be in violation of the FARs for those flight operations if you do not have the appropriate operational authority (part 135 certificate) to conduct the flights. 

Another common pitfall to be aware of is the “sham dry lease” or the “wet lease in disguise.” This situation occurs when one or more parties act in concert to provide an aircraft and at least one crewmember to a potential passenger. One could see this, for example, when the passenger enters into two independent contracts with the party that provides the aircraft and the pilot. One could also see this when two or more parties agree to provide a bundle, e.g., when the lessor of the aircraft conditions the lease – whether directly or indirectly – to entering into a professional services agreement with a specific pilot or group of pilots. This type of scenario is further discussed in Advisory Circular (AC) 91-37B, Truth in Leasing.

Flight-sharing, according to Section 61.113(c) of Title 14 of the CFR, allows for private pilots to share certain expenses. Pilots may share operating expenses with passengers on a pro rata basis when those expenses involve only fuel, oil, airport expenditures, or rental fees. To properly conduct an expense sharing flight under 61.113(c), the pilot and passengers must have a common purpose and the pilot cannot hold out as offering services to the public. The “common-purpose test” anticipates that the pilot and expense-sharing passengers share a “bona fide common purpose” for their travel and the pilot has chosen the destination.

Communications with passengers for a common-purpose flight are restricted to a defined and limited audience to avoid the “holding out” element of common carriage. For example, advertising in any form (word of mouth, website, reputation, etc.) raises the question of “holding-out.” Note that, while a pilot exercising private pilot privileges may share expenses with passengers within the constraints of § 61.113(c), the pilot cannot conduct any commercial operation under part 119 or the less stringent operating rules of part 91 (e.g., aerial work operations, crop dusting, banner towing, ferry or training flights, or other commercial operations excluded from the certification requirements of part 119). For more information on sharing flight expenses, common purpose and holding out see:

• 14 CFR 61.113(c) Private pilot privileges and limitations: Pilot in command
• AC 61-142, Sharing Aircraft Operating Expenses in Accordance with 14 CFR 61.113(c)
• AC 120-12A, Private Carriage vs. Common Carriage of Persons or Property
• FlyteNow, Inc. vs. Federal Aviation Administration, 808 F.3d 882 (D.C. Cir. 2015)

Air operators must fully understand and comply with the following Code of Federal Regulations (CFRs) when operating within the national airspace:

• 14 CFR Part 91 — General Operating and Flight Rules
• 14 CFR Part 119 — Certification: Air Carriers and Commercial Operators
• 14 CFR Part 135 — Operating Requirements: Commuter and On Demand Operations and Rules Governing Persons On Board Such Aircraft

Ensure you fully understand the requirements for legitimate leases as explained in the following FAA Advisory Circulars:

• AC 61-142 — Provides guidance on how a pilot may share flight expenses with passengers
• AC 91-37B — Defines "Truth in Leasing" which defines operational control
• AC 120-12A — Defines Common v. Private Carriage and the four pillars of common carriage

• Notice Number NOTC2238 - Misuse of Expense Sharing and Understanding Pilot Privileges, Jan. 31, 2022
• FAA's Informational Letter to Pilots, May 22, 2020
• Important charter guidance for pilots and passengers
• Dry Lease Red Flags Aid (Pilot Kneeboard)
• Common Air Charter Scenarios with Guidance Handout
• Can You Spot the Illegal Charter? (8 1/2 x 11, Poster in English and Spanish)