Office of the Secretary, DOT

Section 375.37

(4) Witnesses and attorneys attending
any legal investigation in which any
such foreign air carrier is involved;
(5) Persons injured in aircraft accidents and physicians and nurses attending such persons;
(6) Any persons or property with the
object of providing relief in cases of
general epidemic, natural disaster or
other catastrophe;
(7) Any person who has the duty of
guarding foreign government officials
travelling on official business; and
(8) Guests of a foreign air carrier (including members of the press) on delivery flights of newly-acquired or newlyrenovated aircraft.
(c) A charge reasonably related to
the value of meals and beverages furnished enroute shall not be deemed to
constitute compensation or hire for
purposes of this section.
Section 375.36 Lease of foreign civil aircraft
without crew.
Foreign civil aircraft that are leased
without crew to an air carrier or citizen or permanent resident of the
United States, and used by the lessee
in otherwise authorized air transportation or commercial air operations,
may be operated into, out of, and within the United States in accordance
with any applicable regulations prescribed by the Federal Aviation Administration.

rmajette on DSKBCKNHB2PROD with CFR

Section 375.37 Certain business aviation activities using U.S.-registered foreign
civil aircraft.
For purposes of this section,  - company -  is defined as a person that operates civil aircraft in furtherance of a
business other than air transportation.
U.S.-registered foreign civil aircraft
that are not otherwise engaged in commercial air operations, or foreign air
transportation, and which are operated
by a company in the furtherance of a
business other than transportation by
air, when the carriage is within the
scope of, and incidental to, the business of the company (other than transportation by air), may be operated to,
from, and within the United States as
follows:
(a) Intra-company operations. A company operating a U.S.-registered foreign civil aircraft may conduct oper-

ations for a subsidiary or parent or a
subsidiary of its parent on a fully-allocated cost reimbursable basis; provided, that the operator of the U.S.registered foreign civil aircraft must
hold majority ownership in, be majority owned by, or have a common parent
with, the company for which it provides operations;
(b) Interchange operations. A company
may lease a U.S.-registered foreign
civil aircraft to another company in
exchange for equal time when needed
on the other company-s U.S. registered
aircraft, where no charge, assessment,
or fee is made, except that a charge
may be made not to exceed the difference between the cost of owning, operating, and maintaining the two aircraft;
(c) Joint ownership operations. A company that jointly owns a U.S.-registered foreign civil aircraft and furnishes the flight crew for that aircraft
may collect from the other joint owners of that aircraft a share of the actual costs involved in the operation of
the aircraft; and
(d) Time-sharing operations. A company may lease a U.S.-registered foreign civil aircraft, with crew, to another company; provided, that the operator may collect no charge for the
operation of the aircraft except reimbursement for:
(1) Fuel, oil, lubricants, and other additives.
(2) Travel expenses of the crew, including food, lodging, and ground
transportation.
(3) Hanger and tie-down costs away
from the aircraft-s base of operations.
(4) Insurance obtained for the specific
flight.
(5) Landing fees, airport taxes, and
similar assessments.
(6) Customs, foreign permit, and
similar fees directly related to the
flight.
(7) In flight food and beverages.
(8) Passenger ground transportation.
(9) Flight planning and weather contract services.
(10) An additional charge equal to 100
percent of the expenses for fuel, oil, lubricants, and other additives.
[Doc. No. DOT-OST-2003-15511, 71 FR 15328,
Mar. 28, 2006]

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