Federal Aviation Administration, DOT
Section 91.1002

Section 91.1009

Compliance date.

No person that conducted flights before November 17, 2003 under a program
that meets the definition of fractional
ownership program in Section 91.1001 may
conduct such flights after February 17,
2005 unless it has obtained management specifications under this subpart.
[Doc. No. FAA-2001-10047, 68 FR 54561, Sept.
17, 2003; 69 FR 74413, Dec. 14, 2004]

Section 91.1003 Management contract between owner and program manager.
Each owner must have a contract
with the program manager that - 
(a) Requires the program manager to
ensure that the program conforms to
all applicable requirements of this
chapter.
(b) Provides the owner the right to
inspect and to audit, or have a designee
of the owner inspect and audit, the
records of the program manager pertaining to the operational safety of the
program and those records required to
show compliance with the management
specifications and all applicable regulations. These records include, but are
not limited to, the management specifications, authorizations, approvals,
manuals, log books, and maintenance
records maintained by the program
manager.
(c) Designates the program manager
as the owner-s agent to receive service
of notices pertaining to the program
that the FAA seeks to provide to owners and authorizes the FAA to send
such notices to the program manager
in its capacity as the agent of the
owner for such service.
(d) Acknowledges the FAA-s right to
contact the owner directly if the Administrator determines that direct
contact is necessary.

kpayne on VMOFRWIN702 with $$_JOB

Section 91.1005

Prohibitions and limitations.

(a) Except as provided in Section 91.321 or
Section 91.501, no owner may carry persons or
property for compensation or hire on a
program flight.
(b) During the term of the multi-year
program agreements under which a
fractional owner has obtained a minimum fractional ownership interest in
a program aircraft, the flight hours
used during that term by the owner on

program aircraft must not exceed the
total hours associated with the fractional owner-s share of ownership.
(c) No person may sell or lease an aircraft interest in a fractional ownership
program that is smaller than that prescribed in the definition of  - minimum
fractional ownership interest -  in
Section 91.1001(b)(10) unless flights associated
with that interest are operated under
part 121 or 135 of this chapter and are
conducted by an air carrier or commercial operator certificated under part
119 of this chapter.
Section 91.1007 Flights conducted under part
121 or part 135 of this chapter.
(a) Except as provided in Section 91.501(b),
when a nonprogram aircraft is used to
substitute for a program flight, the
flight must be operated in compliance
with part 121 or part 135 of this chapter, as applicable.
(b) A program manager who holds a
certificate under part 119 of this chapter may conduct a flight for the use of
a fractional owner under part 121 or
part 135 of this chapter if the aircraft is
listed on that certificate holder-s operations specifications for part 121 or
part 135, as applicable.
(c) The fractional owner must be informed when a flight is being conducted as a program flight or is being
conducted under part 121 or part 135 of
this chapter.
OPERATIONAL CONTROL
Section 91.1009 Clarification of operational
control.
(a) An owner is in operational control
of a program flight when the owner - 
(1) Has the rights and is subject to
the limitations set forth in SectionSection 91.1003
through 91.1013;
(2) Has directed that a program aircraft carry passengers or property designated by that owner; and
(3) The aircraft is carrying those passengers or property.
(b) An owner is not in operational
control of a flight in the following circumstances:
(1) A program aircraft is used for a
flight for administrative purposes such
as
demonstration,
positioning,

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