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14 CFR Ch. I (1–1–14 Edition)
§ 91.1001
§ 91.1001
Applicability.
(a) This subpart prescribes rules, in
addition to those prescribed in other
subparts of this part, that apply to
fractional owners and fractional owner-
ship program managers governing—
(1) The provision of program manage-
ment services in a fractional ownership
program;
(2) The operation of a fractional own-
ership program aircraft in a fractional
ownership program; and
(3) The operation of a program air-
craft included in a fractional ownership
program managed by an affiliate of the
manager of the program to which the
owner belongs.
(b) As used in this part—
(1)
Affiliate of a program manager
means a manager that, directly, or in-
directly, through one or more inter-
mediaries, controls, is controlled by, or
is under common control with, another
program manager. The holding of at
least forty percent (40 percent) of the
equity and forty percent (40 percent) of
the voting power of an entity will be
presumed to constitute control for pur-
poses of determining an affiliation
under this subpart.
(2) A
dry-lease aircraft exchange means
an arrangement, documented by the
written program agreements, under
which the program aircraft are avail-
able, on an as needed basis without
crew, to each fractional owner.
(3) A
fractional owner or owner means
an individual or entity that possesses a
minimum fractional ownership interest
in a program aircraft and that has en-
tered into the applicable program
agreements; provided, however, that in
the case of the flight operations de-
scribed in paragraph (b)(6)(ii) of this
section, and solely for purposes of re-
quirements pertaining to those flight
operations, the fractional owner oper-
ating the aircraft will be deemed to be
a fractional owner in the program man-
aged by the affiliate.
(4) A
fractional ownership interest
means the ownership of an interest or
holding of a multi-year leasehold inter-
est and/or a multi-year leasehold inter-
est that is convertible into an owner-
ship interest in a program aircraft.
(5) A
fractional ownership program or
program means any system of aircraft
ownership and exchange that consists
of all of the following elements:
(i) The provision for fractional own-
ership program management services
by a single fractional ownership pro-
gram manager on behalf of the frac-
tional owners.
(ii) Two or more airworthy aircraft.
(iii) One or more fractional owners
per program aircraft, with at least one
program aircraft having more than one
owner.
(iv) Possession of at least a minimum
fractional ownership interest in one or
more program aircraft by each frac-
tional owner.
(v) A dry-lease aircraft exchange ar-
rangement among all of the fractional
owners.
(vi) Multi-year program agreements
covering the fractional ownership,
fractional ownership program manage-
ment services, and dry-lease aircraft
exchange aspects of the program.
(6) A
fractional ownership program air-
craft or program aircraft means:
(i) An aircraft in which a fractional
owner has a minimal fractional owner-
ship interest and that has been in-
cluded in the dry-lease aircraft ex-
change pursuant to the program agree-
ments, or
(ii) In the case of a fractional owner
from one program operating an aircraft
in a different fractional ownership pro-
gram managed by an affiliate of the op-
erating owner’s program manager, the
aircraft being operated by the frac-
tional owner, so long as the aircraft is:
(A) Included in the fractional owner-
ship program managed by the affiliate
of the operating owner’s program man-
ager, and
(B) Included in the operating owner’s
program’s dry-lease aircraft exchange
pursuant to the program agreements of
the operating owner’s program.
(iii) An aircraft owned in whole or in
part by the program manager that has
been included in the dry-lease aircraft
exchange and is used to supplement
program operations.
(7) A
Fractional Ownership Program
Flight or Program Flight means a flight
under this subpart when one or more
passengers or property designated by a
fractional owner are on board the air-
craft.
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