Controversial judgement expected in July on key role of management companies
The international business aviation community is warning of a possible clash between US and European regulators over new rules governing US fractional ownership operations, which are expected to be issued by the Federal Aviation Administration in July.
"We are entering into a turbulent area," says National Business Aviation Association (NBAA) president Jack Olcott, who adds that the new rule - Federal Aviation Regulations Part 91 subpart K - "will re-ignite the controversy between the FAA and some European countries over what constitutes a private operation".
Adding to the controversy, the FAA also plans to relax the rules governing Part 135 operations for on-demand charter.
The NBAA and the European Business Aviation Association (EBAA) fear that, while the playing field for commercial and private operators in the USA has been levelled by the new rule, its implementation will only divide regulators and operators in Europe. In the USA, fractionals are deemed private operations, but in Europe they are seen as commercial and subject to much tighter rules on crew utilisation, maintenance, runway and reporting requirements. Despite calls for Europe's Joint Aviation Authorities to form equivalent rules for operators on the continent, there are no plans to do so.
Aviation lawyer Ian Clark says the key issue is the role of management companies. European regulators see them as commercial because management companies are paid to look after the aircraft. In the USA, the role of these organisations is regarded as private.
EBAA chairman Brian Humphries says US N-registered aircraft, used for fractional and on-demand charter, will operate in Europe under different rules than their European counterparts.
"Our fear is that some European regulatory authorities, such as the French DGAC and the UK Civil Aviation Authority, may, in response, decide to ban all US-registered aircraft and their actions could lead the FAA to make life difficult for European operators flying within the USA," says Humphries.
Clark says the industry would be thrown into chaos if regulators took such rigid views.
Source: Flight International
