[Federal Register Volume 66, Number 138 (Wednesday, July 18, 2001)]
[Proposed Rules]
[Pages 37520-37561]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-17503]



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Part II





Department of Transportation





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Federal Aviation Administration



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14 CFR Parts 13, 61, 91, et al.



Regulation of Fractional Aircraft Ownership Programs and On-Demand 
Operations; Proposed Rule

  Federal Register / Vol. 66 , No. 138 / Wednesday, July 18, 2001 / 
Proposed Rules  

[[Page 37520]]


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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Parts 13, 61, 91, 119, 125, 135, and 142

[Docket No. FAA-2001-10047; Notice No. 01-08]
[RIN 2120-AH06]


Regulation of Fractional Aircraft Ownership Programs and On-
Demand Operations

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Notice of proposed rulemaking (NPRM).

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SUMMARY: The Federal Aviation Administration (FAA) proposes to update 
and revise the regulations governing operations by aircraft in 
fractional ownership programs. This action is undertaken because the 
FAA has determined that current regulations do not adequately define 
fractional ownership programs and do not clearly allocate 
responsibility and authority for safety and compliance with the 
regulations. The proposed revisions would define fractional ownership 
programs and their various participants, allocate responsibility and 
authority for safety of flight operations for purposes of compliance 
with the regulations, and ensure that fractional ownership program 
aircraft operations maintain a high level of safety. Elements of this 
proposal would provide in certain of the regulations applicable to 
fractional ownership programs a level of safety equivalent to certain 
regulations that apply to on-demand operators. Changes are also 
proposed to some regulations that apply to on-demand operators meeting 
certain criteria to permit these operators an alternate means of 
compliance for certain commercial operations.

DATES: Comments must be received on or before October 16, 2001.

ADDRESSES: Address your comments to the Docket Management System, U.S. 
Department of Transportation, Room Plaza 401, 400 Seventh Street, SW., 
Washington, DC 20590-0001. You must identify the docket number FAA-
2001-XXXXX at the beginning of your comments, and you should submit two 
copies of your comments. If you wish to receive confirmation that the 
FAA received your comments, include a self-addressed, stamped postcard.
    You may also submit comments through the Internet to http://dms.dot.gov/. You may review the public docket containing comments to 
these proposed regulations in person in the Dockets Office between 9:00 
a.m. and 5:00 p.m., Monday through Friday, except Federal holidays. The 
Dockets Office is on the plaza level of the Nassif Building at the 
Department of Transportation at the above address. Also, you may review 
public dockets on the Internet at http://dms.dot.gov. 

FOR FURTHER INFORMATION CONTACT: Katherine Hakala Perfetti, Flight 
Standards Service (AFS-200), Federal Aviation Administration, 800 
Independence Avenue, SW., Washington, DC 20591, telephone (202) 267-
3760, email: [email protected]. 

SUPPLEMENTARY INFORMATION:

Comments Invited

    Interested persons are invited to participate in the making of the 
proposed action by submitting such written data, views, or arguments as 
they may desire. Comments relating to the environmental, energy, 
federalism, or economic impact that might result from adopting the 
proposals in this document also are invited. Substantive comments 
should be accompanied by cost estimates. Comments must identify the 
regulatory docket or notice number and be submitted in duplicate to the 
DOT Rules Docket address specified above.
    All comments received, as well as a report summarizing each 
substantive public contact with FAA personnel concerning this proposed 
rulemaking, will be filed in the docket. The docket is available for 
public inspection before and after the comment closing date.
    All comments received on or before the closing date will be 
considered by the Administrator before taking action on this proposed 
rulemaking. Comments filed late will be considered as far as possible 
without incurring expense or delay. The proposals in this document may 
be changed in light of the comments received.
    Commenters wishing the FAA to acknowledge receipt of their comments 
submitted in response to this document must include a pre-addressed, 
stamped postcard with those comments on which the following statement 
is made: ``Comments to Docket No. [FAA-2000-XXXX.]'' The postcard will 
be date stamped and mailed to the commenter.

Availability of NPRMs

    You may download an electronic copy of this document, using a modem 
and suitable communications software, from the FAA regulations section 
of the FedWorld electronic bulletin board service (telephone: (703) 
321-3339), the Government Printing Office (GPO)'s electronic bulletin 
board service (telephone: (202) 512-1661), or, if applicable, the FAA's 
Aviation Rulemaking Advisory Committee bulletin board service 
(telephone: (800) 322-2722 or (202) 267-5948).
    Internet users may reach the FAA's web page at http://www.faa.gov/avr/arm/nprm/nprm.htm or the GPO's web page at http://www.access.gpo.gov/nara for access to recently published rulemaking 
documents.
    Any person may obtain a copy of this document by submitting a 
request to the Federal Aviation Administration, Office of Rulemaking, 
ARM-1, 800 Independence Avenue SW., Washington, DC 20591, or by calling 
(202) 267-9680. Communications must identify the notice number or 
docket number of this NPRM.
    Persons interested in being placed on the mailing list for future 
rulemaking documents should request from the above office a copy of 
Advisory Circular No. 11-2A, Notice of Proposed Rulemaking Distribution 
System, which describes the application procedure.

History and Background

    In 1986, Executive Jet Aviation, Inc. created a new program that 
offered to aircraft owners increased flexibility in the ownership and 
operation of aircraft by individuals and corporations. This program 
used existing aircraft acquisition concepts, including shared aircraft 
ownership, and provided for the management of the aircraft by an 
aircraft management company. The aircraft owners participating in the 
program agreed not only to share their aircraft with others having an 
ownership interest in that aircraft, but also to lease their aircraft 
to other owners in the program. The aircraft owners used the common 
management company to maintain the aircraft and administer the leasing 
of the aircraft among the owners. An FAA regional determination allowed 
this ``fractional ownership'' program to operate under 14 CFR part 91.
    Since that time, the number of companies offering fractional 
ownership programs has grown. During the 1990s this growth was 
substantial and sustained. As of early 2000, the leading fractional 
ownership programs managed approximately 465 aircraft on behalf of 
3,446 shareowners. Growth in fractional ownership programs is expected 
to increase.
    While the vast majority of these programs are conducted under 14 
CFR part 91, some are conducted under 14 CFR part 135. Of those 
operating under part 91, the FAA believes that most follow the ``best 
practices'' of corporate

[[Page 37521]]

aviation. FAA and NTSB accident data for U.S.-registered turbine-
powered aircraft during the ten-year period from 1987-1998 demonstrates 
that fractional ownership aircraft operations are very safe.
    As fractional ownership programs have grown in size, complexity and 
number, there has been considerable controversy within the aviation 
community as to their appropriate regulatory structure. Additionally, 
the FAA has had evolving concerns regarding issues of accountability 
and responsibility for compliance. Consequently, the FAA has continued 
its analysis of the appropriate regulatory environment for these 
programs.

Fractional Ownership Aviation Rulemaking Committee

    In October of 1999, the FAA convened a special aviation rulemaking 
committee, the Fractional Ownership Aviation Rulemaking Committee 
(FOARC), pursuant to the Administrator's authority under 49 U.S.C. 
106(p)(5), to address the issues surrounding the regulation of 
fractional ownership program operations. Pursuant to the order of 
October 6, 1999 that established the FOARC, the committee's objective 
was to ``propose such revisions to the Federal Aviation Regulations and 
associated guidance material as may be appropriate with respect to 
fractional ownership programs.''
    The FOARC was composed of 27 members selected by the FAA as 
representative of the various constituencies interested in regulation 
of fractional ownership program operations. Designated advisors and 
counsel assisted the FOARC.
    FOARC members represented on-demand charter operators, fractional 
ownership program managers and owners, aircraft manufacturers, 
corporate flight departments, traditional aircraft management 
companies, aircraft financing and insurance companies, and industry 
trade associations. Representatives of the FAA, the U.S. Department of 
Transportation and foreign civil aviation authorities were also 
included.
    The FOARC met for nine days in November and December 1999. Within 
the FOARC's meeting schedule, two days were set aside for public 
hearings to provide the public an opportunity to comment or present 
positions on this issue. Notice of these public meetings was provided 
in the Federal Register and through the media. The FAA reviewed and 
considered all material presented by participants at the public 
meetings. The FOARC presented its initial recommendations to the FAA on 
February 23, 2000. The order that established the FOARC was further 
extended to allow continued discussions with the committee and to 
reconvene the committee to discuss issues and to provide further input 
following FAA internal review of the FOARC's recommendations.
    Early in its deliberations, the members of the FOARC agreed that 
the committee would attempt to reach consensus recommendations and 
that, absent consensus, majority and minority reports would be provided 
to the FAA. In the end, the members of the FOARC reached unanimous 
consensus on all the committee's recommendations, including those with 
respect to changes in both parts 91 and 135. Those recommendations, 
delivered to the FAA in the form of the FOARC's final proposed NPRM, 
are the basis of this NPRM.

General Discussion of the Proposal

Operational Control and Regulatory Responsibility

    Safety is the shared responsibility of the entire aviation 
community. The FAA's objective is to ensure the appropriate level of 
safety for aircraft operations. Prior to the introduction of fractional 
ownership programs, the regulations recognized differing levels of 
operational control and regulatory responsibility among persons 
traveling by air, and provided levels of oversight intended to maintain 
an appropriate level of safety in view of these differences.
    Airline passengers exercise no control over and bear no 
responsibility for the airworthiness or operation of the aircraft 
aboard which they are flown. Because the traveling public has no 
control over, or responsibility for, airline safety-of-flight issues, 
the FAA has determined that an appropriate level of public safety is 
provided by imposing on scheduled airline service very stringent 
regulations and oversight under part 121 and part 135.
    Passengers who are transported by part 135 on-demand operators or 
by part 121 supplemental operators bear no responsibility for the 
operation of the aircraft aboard which they are flown. On-demand or 
supplemental air charter passengers negotiate the point and time of 
origin and destination of the flight, and may have the ability (subject 
to the pilot's supervening authority) to direct or redirect the flight. 
Under these circumstances, the FAA has determined that the appropriate 
level of public safety is provided by imposing stringent regulations 
and oversight under part 121 or part 135.
    Aircraft owners flying aboard aircraft they own or lease exercise 
full control over and bear full responsibility for the airworthiness 
and operation of their aircraft. Under these circumstances, the FAA has 
determined that the appropriate level of public safety is provided by 
imposing general operating and flight regulations and oversight under 
part 91.
    These policies and differing levels of responsibility were 
reflected in the development of part 91, subpart D, subsequently 
subpart F, which governs much of business aviation today. On July 25, 
1972, the FAA promulgated Amendment 91-101 to 14 CFR part 91 (37 FR 
14758, July 25, 1972). This Amendment added to part 91 a new subpart D, 
applicable to large and turbojet-powered multiengine aircraft. Subpart 
D was the predecessor to the current subpart F of part 91 (54 FR 34314, 
Aug. 18, 1989). Section 91.181 of subpart D was the predecessor of 
current Sec. 91.501 (54 FR 34314).
    In creating the new subpart, the FAA continued its longstanding 
policy that individuals and corporations may operate their aircraft 
under part 91 and included these operations as the cornerstone of the 
new subpart. This policy is currently embodied in Sec. 91.501(b)(4), 
which allows a person to operate his or her aircraft ``for his personal 
transportation, or the transportation of his guests when no charge, 
assessment, or fee is made for the transportation,'' and in 
Sec. 91.501(b)(5), which allows for the ``[c]arriage of officials, 
employees, guests, and property of a company on an airplane operated by 
that company * * * when the carriage is within the scope of, and 
incidental to, the business of the company * * *''
    In preserving these uses under part 91, the FAA chose to focus on 
the commercial (on-demand charter) or non-commercial (business or 
personal) motive a company or individual has in operating an aircraft, 
rather than on the form of the arrangements that led to the acquisition 
of the aircraft interest. In proposing the new subpart, the FAA pointed 
out that, ``in order to augment or more fully utilize their fleets, 
many corporate aircraft operators entered into agreements for the loan, 
exchange, or sharing of their aircraft'' (36 FR 19509). The FAA 
permitted such arrangements to continue under the new subpart, and 
specifically allowed for even more complex arrangements, such as time-
sharing arrangements, interchange agreements, and joint ownership 
arrangements. In explaining its

[[Page 37522]]

determination that such arrangements do not affect which part of the 
regulations the aircraft should operate under, the FAA stated in the 
preamble to the final rule (37 FR 14758):

    ``[T]he decision to proceed with the upgrading of part 91 for 
large and turbine-powered multiengine airplanes is an important 
threshold step in the FAA policy to remove, to the extent possible, 
those differences in the safety standards that [are] primarily 
economic in nature and result in unnecessary restrictions or 
limitations on aircraft operators. In accordance with that policy, 
the need for different or additional safety standards for corporate 
operations should be resolved on the basis of safety, rather than 
economics or juristic semantics. Safetywise, we have determined that 
neither the relationship of the corporations nor the type of 
compensation received for the services rendered should be relevant 
or controlling under the standards of the new subpart D for the 
various corporate kinds of operations that do not involve common 
carriage.
    ``In order to make this change in policy clear to all interested 
persons, Sec. 91.181(b) includes a list of the kinds of operations 
that may be conducted under subpart D. In addition, Sec. 91.181(c) 
of subpart D expressly provides that charges covering the normal 
operating expenses of the aircraft and the salary of the crew may be 
made under a time sharing or interchange agreement as defined in 
that section. This policy also applies to a corporation regardless 
of its relationship, if any, to the corporation for which the 
carriage is conducted. Accordingly, the application of subpart D to 
a corporate operator will no longer be dependent on whether that 
operator is a parent or subsidiary corporation or a member of a 
conglomerate. It should be noted, however, that if a corporation is 
established solely for the purpose of providing transportation to 
the parent corporation, a subsidiary or other corporation, the 
foregoing policy does not apply. In that case, the primary business 
of the corporation operating the airplane is transportation and the 
carriage of persons or goods for any other corporation, for a fee or 
charge of any kind, would require the corporation operating the 
airplane to hold a commercial operator certificate under part 121 or 
135, as appropriate.''

    This statement of the intent of subpart D highlights the importance 
of identifying, in the context of shared aircraft ownership and use 
arrangements, the person in operational control of the aircraft at any 
given time. Historically, this information has been used to determine 
whether an operation may be conducted under part 91 with adequate 
assurance of public safety, or must be conducted under the requirements 
of on-demand air passenger service under part 135. This statement also 
highlights the longstanding ability of aircraft owners to purchase 
aviation expertise for the purpose of managing, maintaining or 
otherwise aiding the operation of the aircraft they operate under part 
91.
    Current Sec. 91.501 authorizes, under part 91, operations involving 
the personal use of aircraft (Sec. 91.501(b)(4)), the use of aircraft 
within the same corporate group (Sec. 91.501(b)(5)), and the use of 
time sharing agreements (Sec. 91.501(c)(1)), interchange agreements 
(Sec. 91.501(c)(2)), and joint ownership agreements (Sec. 91.501(c)(3)) 
within or outside of the same corporate group (Sec. 91.501(b)(6)).

FOARC Discussions and Consensus

    It is within the context of the operational control and regulatory 
responsibility discussion above that the FOARC considered the 
regulation of fractional ownership programs. During these 
deliberations, the FOARC determined that fractional owners flying 
aboard fractionally-owned aircraft contractually acknowledge 
substantial control over and bear substantial responsibility for the 
airworthiness and operation of their aircraft. Like whole aircraft 
owners, fractional owners can initiate, conduct, redirect and terminate 
a flight. Fractional owners also operate their aircraft under part 91 
only for themselves and their guests and may not offer transportation 
for hire to the general public unless they do so under part 135 or part 
121. Additionally, the FOARC noted that both fractional owners and 
whole aircraft owners have other shared characteristics that relate at 
least in part to safety: (1) They conduct research so that they can be 
assured that they will select the right aircraft and realize an 
adequate return from their capital investment; (2) they possess an 
interest in an aircraft acquired through a significant capital 
investment; (3) they purchase aviation expertise for the purpose of 
managing, maintaining or otherwise aiding the operation of the aircraft 
they operate under part 91, including the option to select flight 
crews; and (4) they bear the risk of loss or damage to the aircraft and 
the risk of diminution of value of the aircraft. On-demand charter 
passengers, on the other hand, do not assume any of these risks and 
responsibilities nor do they have any significant financial investment 
in the chartered aircraft.
    Based on its analysis of fractional ownership program arrangements, 
the FOARC concluded that fractional owners flying aboard fractionally-
owned and operated aircraft share more of their regulatory 
characteristics with the owners of non-commercially operated aircraft 
than with passengers using on-demand operators. Consequently, the FOARC 
concluded that fractional ownership programs are properly regulated 
under part 91 of the Federal Aviation Regulations. Fractional owners 
operating under part 91 are engaged in non-commercial operations and, 
as such, may not offer air transportation services (common carriage), 
air commerce services for compensation, chargeback, or hire without 
appropriate air carrier certification and appropriate economic 
authority, although fractional owners may be compensated to the extent 
permitted under applicable existing sections of part 91.
    Fractional owners differ from a majority of whole business or 
personal aircraft owners in that (1) fractionally-owned aircraft 
typically have multiple owners, (2) their aircraft's availability is a 
component of a pooled fleet under a dry lease exchange program with the 
other fractional owners, (3) the owners of a fractionally-owned 
aircraft agree to use the services of a single company to manage their 
aircraft, and (4) all owners agree to a uniform aircraft configuration. 
With the exception of item 3 above, these characteristics also 
constitute the differences between fractional ownership programs and 
situations where aircraft are managed by traditional aircraft 
management companies. The FOARC concluded that these distinctions, 
unique among general aviation operations, suggest the need for 
definition and appropriate regulation under part 91.
    To clearly define the safety responsibilities of fractional owners 
and fractional ownership program managers under the regulations, the 
FOARC recommended that a new subpart K of 14 CFR part 91 be established 
to regulate fractional ownership programs. Proposed subpart K further 
establishes a clear regulatory infrastructure for fractional owners to 
exercise their operational control responsibilities, including the 
responsibility for the operation and airworthiness of program aircraft. 
It also specifies a fractional aircraft program manager's obligations 
with respect to its provision of aircraft management services related 
to the airworthiness and operation of fractional ownership program 
aircraft.
    The FOARC recommended that proposed subpart K of part 91 should 
apply only to fractional ownership program aircraft and not to other 
business aircraft arrangements including traditional flight 
departments, the use of management companies providing aviation 
expertise, flying clubs, partnerships or other ownership forms such as 
joint ownership. These types of operations do not meet the new 
definitions of ``fractional ownership program,'' and components of 
those programs, set forth in proposed subpart

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K. These definitions clearly delineate the differences between 
fractional ownership program requirements, other types of ownership and 
traditional management arrangements. A fractional ownership program 
manager may elect to conduct its programs under part 121 or part 135, 
instead of proposed subpart K of part 91, if such operations comply 
with the certification requirements of part 119 and the operating 
requirements of part 121 or 135, as appropriate. Part 119 certification 
to operate under part 121 or 135 would allow the program manager to 
provide air transportation services to the general public, and not be 
limited to providing fractional ownership program management services 
only to fractional owners and their guests.
    Most fractional ownership program operations today are conducted in 
accordance with industry best practices that exceed part 91 
requirements. These practices have resulted in an excellent safety 
record. The FOARC recommended that many of those best practices, 
together with new requirements, be codified in proposed subpart K. The 
FOARC recognized that the regulatory requirements proposed in subpart K 
impose a significant new regulatory standard upon all current and 
future fractional owners and program managers. The FOARC believed that 
this standard was necessary in the public interest to maintain this 
level of public safety for fractional ownership program operations.
    The FOARC concluded that certain changes to part 135 are required. 
As the FOARC evaluated existing best practices in the industry and 
parallel provisions of parts 119, 121 and 135 in developing proposed 
subpart K, the FOARC determined that certain provisions of proposed 
subpart K provide a level of safety equivalent to the parallel 
provisions of part 135. Corresponding amendments are proposed to the 
pertinent sections of part 135 to permit an alternative means of 
compliance for on-demand operators under these sections of part 135, as 
appropriate. These changes also reflect improvements in technology and 
the ability to operate safely as proven by the operating experience of 
business aircraft operators, including fractional owners.
    The FOARC recommended that, if this proposal is adopted, the FAA 
work closely with the affected parties and the industry to develop 
guidance and to implement the changes proposed to parts 91 and 135. The 
FOARC also recommended that the FAA commit sufficient resources to 
implement these changes.
    The FOARC recommended that the FAA establish a national point of 
contact for fractional ownership operational and airworthiness issues 
to ensure standardization of the implementation process and policy 
application. The FOARC recommended that the FAA should put procedures 
in place to ensure that fractional ownership program managers also are 
subject to FAA oversight and surveillance equal to that experienced by 
part 135 or part 121 operators. The FOARC also recommended that 
approvals for fractional ownership program operations (such as MELs, 
RVSM, manual reviews and maintenance programs) be conducted through a 
process similar to part 135 and/or part 121 processes and procedures, 
as appropriate.
    The FOARC recommended that the FAA provide equivalent assistance to 
part 135 operators endeavoring to meet the revised part 135 
regulations. Finally, the FOARC recommended that the FAA conduct 
appropriate training and ensure that any internal administrative 
changes, necessary for on-going oversight of compliance with these 
regulations, are made. The consensus achieved by the FOARC was 
contingent upon the FAA's commitment to fully implement the FAA 
inspection and oversight requirement of part 91, subpart K to the 
degree currently employed in part 135 operations.
    The FAA agrees with the FOARC recommendations and is publishing 
this NPRM to reflect those recommendations. The FAA believes that this 
proposed rule, if adopted, will satisfy FAA concerns regarding 
fractional owners' and fractional ownership program managers' 
accountability and responsibility for compliance with these proposed 
regulations, particularly with respect to operational control issues. 
The FAA believes that the proposals pertaining to crewmember training, 
experience, rest and duty will provide an appropriate level of safety 
for these kinds of operations. The FAA further agrees that 
implementation of this proposed rule will require the development of 
guidance material, inspector training, inspector assignment, and 
oversight and surveillance policies. The FAA intends to invite industry 
to assist in the development of the implementation strategy and 
documents. Further, the FAA agrees that oversight and surveillance 
policies, and approval processes, need to be modified appropriate to 
these operations and consistent with the recommendations of the FOARC.
    The FAA intends to implement this proposed rule, if adopted, within 
a fifteen month compliance period using a phased-in compliance schedule 
which would allow continued operations under existing part 91 while 
incrementally transitioning to the new regulatory requirements. The FAA 
invites comments on this compliance proposal.

Section-by-Section Analysis

14 CFR Part 13

Section 13.19  Certificate and Management Specifications Action

    One aspect of this proposal would be the creation of a requirement 
for all persons conducting operations under proposed subpart K or 
furnishing fractional ownership program management services to do so 
under management specifications issued by the FAA. Provisions are 
included in Sec. 91.1017 for amending the management specifications. 
However, because the management specifications are a prerequisite to 
all program operations, the FOARC believed that a suspension or 
revocation of those management specifications would affect program 
operations to the same extent that a certificate suspension or 
revocation would affect the operations of certificated entities. For 
that reason, FOARC recommended amending Sec. 13.19 to ensure that the 
suspension or revocation of management specifications would be handled 
like analogous certificate actions, and that the users of the 
management specifications would be afforded similar procedural 
protections, including the right to appeal any suspension or revocation 
to the National Transportation Safety Board.
    The FAA recognizes that proposed Sec. 13.19 would require a 
statutory amendment to authorize the proposed process. However, the FAA 
believes that the treatment of the revocation or suspension of 
management specifications should be similar to the analogous treatment 
of certificates. The FAA seeks comments to determine whether such a 
process would be appropriate if the statutory authority existed. The 
FAA also seeks comments on whether these proposed amendments can be 
effectively implemented without the right to appeal any suspension or 
revocation to the National Transportation Safety Board. After review of 
the comments, the FAA will consider whether it is necessary to seek 
this legislative authority.

[[Page 37524]]

14 CFR Part 61

Section 61.57  Recent Flight Experience: Pilot in Command

    In the course of examining the details of fractional ownership and 
on-demand charter operations, the FOARC found differences in pilot 
requirements between proposed subpart K and part 135, one of which 
relates to the night currency requirement. In response to operator 
safety concerns, the FAA amended Sec. 61.57(e) on April 30, 1999 to 
provide an alternate means of compliance for meeting FAA's night 
currency requirement. The new alternative allowed operators to maintain 
currency by using both the aircraft and part 142 approved training 
programs.
    The applicability of the alternative was unclear, however, because 
in order to qualify for the alternate means of compliance, a pilot must 
``operate more than one type of aircraft.'' Under this definition, 
operators were uncertain how to determine if a pilot ``operated'' more 
than one type of aircraft.
    The proposed change to Sec. 61.57(e) would clarify the existing 
alternative and provide a second alternate means of compliance for 
pilots of turbine-powered aircraft that require more than one pilot and 
that meet additional experience requirements. The first alternative 
allows pilots to maintain night currency through the performance of 
three takeoffs and landings to a full stop over a 6 calendar month 
period. The second alternative allows pilots to maintain night currency 
through the performance of 6 takeoffs and landings to a full stop in a 
simulator training program approved under part 142 of this chapter. The 
FAA believes these alternatives provide an equivalent level of safety 
for night flying operations.

14 CFR Part 91

Section 91.501  Applicability

    A number of proposed changes are necessary to conform existing 
regulations to the proposed subpart K and for other technical purposes. 
Several substantive changes to Sec. 91.501 regarding the applicability 
of subpart F to fractional ownership program aircraft are being 
proposed. They are discussed below.
    Current Sec. 91.501(a) limits the applicability of the exceptions-
to-certification options and other requirements of subpart F to large 
airplanes and multiengine turbine-powered airplanes of U.S. registry. 
Small airplanes and other aircraft regardless of size (e.g., 
helicopters and single-engine turbine-powered airplanes) require 
exemption authority to operate under current subpart F. Such authority 
has been routinely granted to members of the National Business Aviation 
Association (NBAA) by Exemption No. 1637, first issued on October 23, 
1972, and has been renewed periodically. Individual exemptions also 
have been granted to non-NBAA members operating these aircraft.
    Proposed Sec. 91.501(a) would extend the applicability of subpart F 
to all aircraft in a fractional ownership program regardless of size, 
type or the number of engines without the need for exemption authority 
so long as these fractional ownership program aircraft are operating 
under proposed subpart K.
    In addition, proposed Sec. 91.501(b)(10) would be added to the 
types of operations permitted by current section 91.501(b)(1)-(9) and 
would clarify that fractional ownership program aircraft operated by a 
fractional owner may engage in any of those types of operations, such 
as personal use of aircraft (Sec. 91.501(b)(4)), use of aircraft within 
the same corporate group (Sec. 91.501(b)(5)), and use of time sharing 
and interchange agreements (Sec. 91.501 (c)(1)-(2)) so long as any 
compensation is limited to amounts permitted by Sec. 91.501(b) for the 
type of operation being conducted, and such operations otherwise comply 
with the applicable rules of subpart F and proposed subpart K. Thus 
proposed Sec. 91.501 would place fractional owners on an equal footing 
with other owners utilizing the exception-to-certification options 
currently available in Sec. 91.501(b) or by exemption to 
Sec. 91.501(b). Flights operated by a fractional ownership program 
manager for administrative purposes, such as training, ferrying, 
positioning, maintenance, or demonstration purposes without carrying 
passengers or cargo for compensation or hire, except as permitted for 
demonstration flights under Section 91.501(b)(3), would be permitted to 
be operated under subparts A through J of part 91, as applicable, 
rather than under subpart K of part 91.

Sections 91.509 and 135.167  Overwater Operations

    The proven reliability of turbine engines provides safety 
justification for amending Secs. 91.509 and 135.167 to allow 
pressurized turbine-powered aircraft which are operated for thirty 
minutes or no more than 100 nautical miles from the nearest shore, 
whichever is greater, above 25,000 feet to operate without life raft 
and related equipment requirements. A person operating a flight planned 
for an altitude above 25,000 feet may deviate below that altitude in 
the interest of safety without violating the requirements of these 
sections.
    In reviewing the overwater equipment requirements of Sec. 91.509, 
members of the FOARC noted that some FAA offices interpret the ``30 
minutes or 100 nautical miles'' standard to mean that whichever measure 
is less is the one that applies. Given the speed of pressurized 
turbine-powered aircraft and the flight levels at which they operate, 
the difference between 30 minutes and 100 nautical miles could be 
substantial. The FOARC recommended that if an aircraft can operate at 
high speed and high altitude, they should be given the option of 
meeting either standard, i.e., typically the 30 minute standard, 
weather conditions permitting. Section 91.509 would be revised to make 
it clear that the additional overwater equipment requirements do not 
apply to pressurized turbine-powered aircraft that plan to operate at 
an altitude greater than 25,000 feet if the flight does not proceed 
``more than 30 minutes or 100 nautical miles from the nearest shore, 
whichever is greater.''
    The FOARC believed that the same requirement should apply to on-
demand operations under Sec. 135.167. Although the overwater equipment 
requirements for such operations apply when the flight will proceed 
more than 50 nautical miles from the nearest shore, they are often 
operated with equipment substantially similar to the equipment in the 
fractional aircraft programs. Accordingly, an exception is proposed for 
Sec. 135.167 identical to that in the proposed revision to Sec. 91.509.

Sections 91.1001 Through 91.1007  Defining Fractional Ownership

    Since proposed subpart K would establish new regulatory 
requirements to fractional ownership programs, program managers and 
owners, it is important that these terms be clearly defined. Proposed 
Secs. 91.1001 through 91.1007 would do so, relying in substantial part 
on industry guidelines developed early in 1999. If an aircraft 
ownership arrangement does not fit within these definitions, it may 
well fit within one or more of the existing operating models in part 
91, subpart F, i.e., an interchange, joint ownership or a time share. 
In these circumstances proposed subpart K would not apply.
    Proposed Sec. 91.1001(b)(1) states five requirements for a 
fractional ownership program:
    1. A designated program manager;
    2. One or more owners per fractional ownership program aircraft, 
with at least one aircraft having multiple owners;

[[Page 37525]]

    3. Possession of a fractional ownership interest in one or more 
program aircraft by each fractional owner consisting of a minimum 
fractional ownership interest of at least one-sixteenth (\1/16\) for a 
subsonic, fixed-wing or powered-lift fractional ownership program 
aircraft or at least one-thirty-second (\1/32\) for a rotorcraft 
fractional ownership program aircraft;
    4. A dry lease aircraft exchange agreement among all the owners; 
and
    5. Multi-year program agreements.
    These five characteristics, when present in a program, distinguish 
a fractional ownership program from other arrangements that involve 
aircraft multiple ownership.
    The core of the definition of a fractional ownership program is the 
concept of a ``minimum fractional ownership interest.'' In setting a 
minimum fractional ownership interest, and throughout proposed subpart 
K, the FOARC sought to prevent potential abuse by persons who might try 
to offer air charter transportation under the guise of a fractional 
ownership program. For example, it was noted that a \1/1000\ interest 
in a used light piston single-engine airplane might be sold profitably 
for a very small dollar amount, entitling the purchaser thereof to an 
``ownership'' interest equivalent to a few hours of occupied flight 
time in the aircraft, with pilot provided. The FOARC determined and the 
FAA agrees that aviation safety would be compromised if persons were 
permitted to offer what would amount to air charter services under 
proposed subpart K, thereby evading the important safety and 
supervision requirements of part 135 applicable to such service. 
Therefore, ownership interests that meet all the other criteria of 
fractional ownership but are less than the minimum ownership interest 
would not be eligible to operate under subpart K.
    The FOARC concluded that a minimum fractional ownership interest of 
one sixteenth (\1/16\) of a subsonic, fixed-wing or powered-lift 
fractional ownership program aircraft, or one thirty-second (\1/32\) of 
a rotorcraft, would constitute a sufficient ownership interest to deter 
possible abuse.
    In addition, the FOARC discussed the ownership of supersonic 
business aircraft. However, since no supersonic business aircraft exist 
today, the FOARC recommended that specific regulatory language 
addressing the operations of supersonic business aircraft not be 
developed until such aircraft are available.
    As to rotorcraft, it was determined that abuse would be 
sufficiently deterred by setting the minimum fractional ownership 
interest at one thirty-second (\1/32\). Although rotorcraft offer 
unique vertical take-off and landing capabilities, require much smaller 
prepared landing and take-off surfaces, and are able to operate to and 
from unprepared sites more effectively than airplanes, the cruising 
speeds, range, and passenger capacity of business rotorcraft are small 
compared to those of comparably priced business airplanes. Moreover, 
while business airplanes that participate in fractional ownership 
programs are expected to operate frequently between airports separated 
by significant distances--often measured in thousands of miles--
rotorcraft that participate in fractional ownership programs are not 
expected to operate outside of a range of, at most, a few hundred 
miles. In light of these factors, the FOARC determined that a smaller 
minimum fractional ownership interest would impose an equivalent burden 
on the ownership of rotorcraft as that imposed on airplane operations 
under subpart K.
    Proposed Sec. 91.1001(b)(6) would define fractional ownership 
program aircraft. A fractional ownership program aircraft would be an 
aircraft in which a fractional owner has a minimum ownership interest, 
as the term has been defined in Sec. 91.1001(b)(3), and is included in 
a dry-lease aircraft exchange. Aircraft which are owned at least in 
part by a fractional ownership program manager meeting the definition 
of ``fractional owner'' under paragraph (b)(5) of proposed 
Sec. 91.1001, and which meet the conditions set forth in paragraph 
(b)(6) of that section, would be considered to be fractional ownership 
program aircraft. In the situation where a fractional owner is 
operating an aircraft in a fractional ownership program managed by an 
affiliate (as discussed below) of the owner's program manager, 
``fractional ownership program aircraft'' means the aircraft which is 
in the program managed by the affiliate of the owner's program manager 
and is being operated by the owner.
    In at least one existing fractional ownership program, the multi-
year program agreements permit a fractional owner not only to use the 
aircraft in the program which the owner has joined, but also aircraft 
in a different program which is managed by a manager affiliated with 
the owner's program manager. The program agreements make clear that for 
purposes of such flights the affiliate program manager has the flight-
related responsibilities of the program manager. The FOARC members 
wanted to permit this type of operation under subpart K so long as an 
appropriate definition of ``affiliate of a program manager'' could be 
developed and agreed to. Proposed Sec. 91.1001(b)(9) would define an 
``affiliate of a program manager'' for the purposes of determining 
whether the owner's program and the program managed by the affiliate of 
the owner's program manager are related closely enough to permit the 
owners to use (i) the program management services provided by the 
affiliate of the owner's program manager, and (ii) aircraft in the 
program managed by the affiliate of the owner's program manager. The 
FOARC members were concerned about the possible consequences if 
fractional ownership programs could be franchised and the owners in the 
resulting franchise programs were allowed to use aircraft in any of the 
franchised programs. The FOARC members believed that there should be a 
sufficient common influence in the related programs to ensure that the 
programs adhere to similar safety practices. The FOARC members further 
desired to preclude the possibility that large networks of 
fractionally-owned aircraft could be established among unrelated 
programs where there is not a sufficient common influence to ensure 
that the programs are administered safely. In the FOARC's view, this 
common influence is most likely to be evidenced by a significant 
commitment by the manager of one program (or the manager's parent, 
affiliate or subsidiary) to the financing and/or strategic decision 
making of the other program or programs. The definition creates a 
presumption that where both a 40% equity interest and 40% of the voting 
power of a program manager is held by another program manager, or its 
parent, affiliate, or subsidiary, the companies are related closely 
enough to permit owners in each related program to use the aircraft in 
the other program or programs.
    Because this definition creates only a presumption, the FAA would 
be free to find that there is a sufficient nexus between programs to 
justify owners in one program to use aircraft in another related 
program even when the equity or voting interest in a program manager 
owned by the other program manager (or its parent, affiliate, or 
subsidiary) is less than 40%. In such cases, the FAA would expect the 
program manager(s) to shoulder the burden of showing that a sufficient 
nexus existed between the programs to justify owners in one program 
using aircraft in another related program. Likewise, the FAA could find 
evidence that there is an insufficient nexus to justify owners in one 
program using aircraft in another related program

[[Page 37526]]

in cases where the 40% equity and voting interest requirement is met. 
In this case, the burden would be on the FAA to show that a sufficient 
nexus did not exist between the programs to justify owners in one 
program using aircraft in another related program.
    The test for determination of an affiliate of a program manager 
under proposed Sec. 91.1001(b)(9) should not be confused with other 
tests of corporate control or with control in the sense of operational 
control. For instance, under the Sec. 91.1001(b)(9) test, more than one 
company may be in ``control'' of a program manager. So long as the 
appropriate common influence exists between the programs, the owners in 
each program may use the aircraft in the other related program or 
programs. Likewise, the 40% equity and voting interest requirements are 
unrelated to the operational control requirements applying to owners 
and program managers. The test applies only for purposes of defining an 
affiliate of a program manager and does not affect the determination of 
what entity is in operational control of a flight. When a fractional 
owner is operating an aircraft in a fractional ownership program 
managed by an affiliate of the owner's program manager, the references 
in proposed subpart K to the flight-related responsibilities of the 
program manager apply to the affiliate of the owner's program manager 
rather than to the owner's program manager. Thus, for that particular 
flight, it is the affiliate of the program manager that is responsible 
for carrying out the flight-related responsibilities of the program 
manager under subpart K. The FAA invites comments on the affiliate 
program concept and regulatory language, specifically,
    (1) Whether the definition adequately defines an affiliate program,
    (2) Whether the contractual multi-year program agreements and dry 
lease exchange arrangements are sufficiently detailed to ensure owners 
have legal possession, custody and use of an aircraft when using 
aircraft from an affiliate company, and
    (3) Additional input to assist the FAA to develop guidance and 
oversight of this area.
    Proposed Sec. 91.1003 specifies the terms of the mandatory contract 
between the program fractional owners and the program manager. The 
contract must ensure that each owner has the right to inspect and to 
conduct audits of the program manager. This is the practice in most, if 
not all fractional ownership programs today. It is not the intention of 
proposed subsection 91.1003(b) to require a program manager to provide 
to the owner the manager's financial records or records pertaining to 
the confidential movements of other owners.
    Proposed Sec. 91.1005 prohibits a fractional owner from receiving 
any compensation other than that permitted by Secs. 91.321 and 91.501. 
Proposed Sec. 91.1005 also makes it clear that the total hours flown by 
a fractional owner may not exceed the total hours associated with that 
fractional owner's share of ownership, consistent with current industry 
practice. Any hours in excess of that ownership share must be flown 
under part 121 or 135.
    The purpose of Sec. 91.1005 is to prevent the use of sham 
fractional ownership programs to avoid the air carrier requirements of 
parts 121 and 135. A sham program would be one that only requires an 
owner to make a small capital outlay or pay unreasonably small fees in 
relation to the value of the aircraft that the owner actually will use 
in the program. For example, if an owner could buy into a program by 
purchasing a fractional interest in smaller aircraft with the intent of 
using only the program's larger aircraft, the program would be a sham 
and would not be considered a fractional ownership program under 
subpart K.
    Proposed Sec. 91.1007 requires a fractional owner to be notified in 
advance, when possible, that a charter aircraft will be substituted for 
a fractional ownership program aircraft on a flight. This reflects the 
current fractional ownership program practice.

Sections 91.1009 Through 91.1013  Clarification of Operational Control 
Issues

    It is important to clarify the concept of ``operational control'' 
in the context of fractional ownership programs. The FAA in the past 
has held that when more than one entity has some involvement in the 
operation of an aircraft, the entity which has ``operational control'' 
is the ``operator'' for purposes of legal responsibility for the safe 
operation of the flight and compliance with the regulations with 
respect to the flight. The traditional criteria applied by the FAA in 
determining who has operational control have focused on which entity 
makes certain decisions related to the flight, particularly decisions 
that bear on the safety of the flight and thus require an adequate 
level of aviation expertise.
    While the FOARC felt that it was important for the FAA to continue 
to hold the entity in operational control of a flight responsible for 
the safe operation of the flight and compliance with the regulations 
with respect to the flight, the FOARC also felt that traditional 
notions of ``operational control'' are not obviously useful in the 
situations where owners of business aircraft do not possess aviation 
safety-related expertise and thus contract with an expert to provide 
such expertise (as is often the case in fractional ownership programs 
as well as in the case of wholly-owned business aircraft).
    It was the view of the FOARC that, in the context of fractional 
ownership programs, safety is best served by the FAA applying a 
definition of operational control specific to these programs, 
clarifying the regulatory compliance implications of operational 
control for all participants, and ensuring that those in operational 
control of fractional ownership program flights clearly understand and 
acknowledge the responsibilities attendant to that operational control.
    Proposed Sec. 91.1009 clarifies current law and policy by providing 
that the fractional owner is in operational control whenever the owner 
has directed that a fractional ownership program aircraft carry 
passengers or property designated by that owner and the aircraft is in 
fact carrying those passengers or property. This section requires, as a 
condition to the owner being considered to be in operational control, 
that the owner have the rights and be subject to the limitations set 
forth in proposed Sec. 91.1003 through 91.1013. These proposed sections 
are intended to ensure that the owner: (1) Has the ability to obtain 
adequate information to determine that the program is being conducted 
safely, (2) does not engage in commercial operations without the 
appropriate authority, (3) has advance notice when a chartered aircraft 
is substituted for a fractional ownership program aircraft on a flight 
for the owner, and (4) is fully aware of the responsibilities and 
implications of the owner being in operational control.
    The owner, as the entity in operational control, remains 
responsible for the safe operation of the flight and compliance with 
the regulations with respect to the flight under this definition. The 
FOARC concluded, in the context of fractional ownership programs, that 
safety is best served by placing additional responsibility for safety 
decisions on the expert fractional ownership program manager who is 
subject to direct FAA safety regulation under proposed subpart K. Under 
this proposal, the fractional ownership program manager is jointly and 
severally responsible with the owner for the safe operation of the 
flight and for

[[Page 37527]]

compliance with the Federal Aviation Regulations affecting that flight. 
Consequently, regulatory responsibility for the safe operation of a 
fractional ownership program aircraft is shared with equal and 
concurrent force, and with equal exposure to FAA enforcement, between 
the fractional owner operating the fractional ownership program 
aircraft and the fractional ownership program manager.
    Proposed Sec. 91.1011 specifies the regulatory compliance 
implications of fractional owners being in operational control. It 
provides that when a fractional owner is in operational control of a 
flight, that owner is responsible for compliance with all applicable 
regulations pertaining to that flight. The section acknowledges that 
the owner may delegate some or all of the tasks associated with 
regulatory compliance to the program manager and may rely on the 
program manager's expertise. Nevertheless, the section specifies that, 
in the event of such a delegation, the owner, as the entity in 
operational control, remains responsible for compliance. Since the 
program manager also has responsibilities for ensuring compliance under 
proposed subpart K and other proposed revisions to part 91, this 
regulatory structure provides to the FAA the option of taking 
enforcement action against the program manager, the owner in 
operational control of the pertinent flight, or both.
    Proposed Sec. 91.1013 requires the program manager to brief each 
fractional owner on the owner's operational control responsibilities, 
and requires the owner to review and sign an acknowledgement of 
fractional owner's operational control responsibilities. The 
acknowledgement must state that the owner is in operational control of 
any fractional ownership program aircraft being used to carry persons 
or property designated by the owner. It must further state that when 
the owner is in operational control, the owner is: (1) Responsible for 
compliance with the management specifications and all regulations 
applicable to the flight, even when the owner has contracted with the 
program manager to carry out tasks related to compliance, (2) exposed 
to FAA enforcement action for any noncompliance, and (3) exposed to 
significant liability risk in the event of any personal injury or death 
resulting from the flight. The acknowledgement form must further state 
that the owner has read, understands, and accepts the operational 
control responsibilities described in the acknowledgement, and 
understands that program flights over which the owner has operational 
control will be operated under part 91 rules rather than the part 121 
or 135 rules that apply to commercial or air carrier operations. The 
acknowledgment also must state that the owner understands that the 
failure of either the program fractional owners or the program manager 
to comply with the regulations may result in enforcement action.

Sections 91.1014 Through 91.1035, 91.1047, 91.1109 Through 91.1115 and 
135.21  Responsibility of Fractional Ownership Program Managers

    One of the major concerns leading to formation of the FOARC was 
whether, and to what extent, fractional ownership program managers 
properly were subject to FAA surveillance and enforcement under the 
existing regulations when conducting program operations. The 
information developed by the FOARC indicated that most program managers 
agree that they should be subject to FAA surveillance and enforcement 
and voluntarily have adopted as standard practices systems and 
procedures that are intended to facilitate FAA surveillance and 
enforcement. The FOARC recommended that it would be prudent to conform 
part 91, subpart K to the existing industry practices and to the extent 
consistent with those practices, parts 119 and 135.
    Proposed Secs. 91.1014 and 91.1109 through 91.1115 would make it 
clear that the fractional ownership program manager, in addition to the 
owners, is responsible for the airworthiness and safe operation of 
fractional ownership program aircraft. Under the proposed sections, the 
program manager is subject to both the surveillance and enforcement 
authority of the FAA. This responsibility is not predicated on 
operational control, which remains with the owner. Rather, it is based 
on the fractional ownership program manager's status as a provider of 
certain program management services, the proper delivery of which is 
critical to aviation safety. The program manager's status in this 
regard is similar to that of a repair station.
    Subpart K imposes on fractional ownership programs certain 
maintenance requirements, including requirements for initial and annual 
recurrent training of maintenance personnel. For purposes of complying 
with the initial and annual recurrent training requirements of 
Sec. 91.1111, the FAA intends to permit on-the-job training, where 
appropriate.
    The FOARC recommended that management specifications be issued to 
fractional ownership program managers. The issuance of management 
specifications that detail program managers' practices and procedures, 
and that state the program managers' authorized deviations and 
exemptions, would facilitate the oversight activities of the Flight 
Standards District Offices. The program manager, the fractional 
aircraft owners, and flight crew and ground and maintenance personnel 
would be responsible for compliance with the management specifications. 
The management specifications would include the registration number and 
serial number for each program aircraft. A current listing of names and 
addresses of each fractional owner must be available at the program 
manager's principal base of operations for FAA review. The management 
specifications must be available at the program manager's principal 
base of operations for owner and FAA review.
    Accordingly, proposed Sec. 91.1015 requires each fractional 
ownership program manager to hold management specifications and 
describes the content and application of the management specifications. 
The list of owners required by Sec. 91.1015(a) may be considered 
proprietary. Section 91.1015(b) authorizes the program manager to keep 
this list at its principal base of operation or another location 
referenced in its management specifications. This list, in addition to 
the management specifications, must be made available for inspection by 
the Administrator.
    Proposed Secs. 91.1017 and 91.1019 describe the procedures for 
amending management specifications and for tests and inspections. The 
FAA intends to work with program managers and part 135 operators to 
develop procedures to allow expedited changes to management and 
operations specifications, such as adding aircraft that are 
substantially similar to aircraft currently approved for operation, 
through use of the Automated Operations Specification Subsystem.
    Proposed Sec. 91.1021 adds a requirement for the program manager to 
establish an internal safety reporting procedure and procedures to 
respond to aviation accidents or incidents.
    Each fractional ownership program manager is required by proposed 
Secs. 91.1023 and 91.1025 to create and maintain a ``program operating 
manual.'' Proposed Sec. 91.1023 further requires each fractional 
ownership program aircraft to have aboard the program operating manual. 
A similar amendment of Sec. 135.21 is proposed to require a manual 
setting forth the certificate holder's flight procedures and policies 
aboard each aircraft.
    Recordkeeping requirements are the responsibility of the program 
manager under proposed Sec. 91.1027. Proposed Sec. 91.1027 would 
authorize program

[[Page 37528]]

managers that also hold a certificate to operate under part 121 or 135 
to use records they maintain under those parts to satisfy the 
equivalent requirements and recordkeeping provisions of Secs. 91.1027 
and Sec. 91.1113. Thus, program managers that hold an air carrier 
certificate or operating certificate would not be required to keep 
separate records for equivalent regulatory requirements to satisfy the 
independent obligations imposed by subpart K and part 121 or 135.
    Proposed Secs. 91.1029 through 91.1035 would require the program 
manager to establish an aircraft scheduling system to designate a pilot 
in command and second in command for each program flight, to provide 
all designated operating information to the pilot to carry aboard the 
aircraft and to ensure that a detailed pre-flight passenger briefing is 
conducted prior to the operation of a fractional ownership program 
aircraft on a program flight. Each pre-flight passenger briefing under 
proposed Sec. 91.1035 must include the name of the program manager or 
other person operating that flight and whether the flight is a program 
flight or a commercial operation. The briefing requirements of this 
section are used in lieu of the briefing requirements of Sec. 91.519 
when the aircraft is operated in a fractional ownership operation.

Sections 91.1025, 91.1037, 135.23, 135.385 and 135.387  The ``60% 
Rule''

    Section 135.385 prohibits an air carrier subject to that section 
from taking off for a destination airport unless the Airplane Flight 
Manual indicates that the airplane at normal loads is capable of a full 
stop landing at that airport within 60% of the effective length of the 
runway. There is no similar requirement in part 91 applicable to 
general aviation operations. As a consequence of the so-called ``60% 
rule,'' on-demand operators may not operate into many airports that are 
safely served by business jets under part 91.
    The 60% rule reflects the inability to predict airplane landing 
performance that existed during the 1930s and 1940s. During this 
period, performance variations existed among airplanes of the same 
model produced by the same manufacturer, and these differences were 
often significant. Maintenance regulations and mechanic training relied 
extensively on an individual mechanic's capabilities, compared to 
today's development of approved airplane repair manuals. Replacement of 
parts and components occurred upon failure, and failures occurred more 
often when compared to today's operations. Modern pilot training is far 
more sophisticated, and emergency training is performed in simulators 
that have far greater capabilities than existed in previous decades. 
The physics of stopping an airplane are better understood today. 
Airport designs have been largely standardized, and pavement standards 
have been developed. Moreover, weather forecasts of wind or 
precipitation are far more accurate than in the past.
    In the former environment, the Civil Aeronautics Board (CAB), which 
regulated all commercial operations at the time, felt it necessary to 
institute the 60% rule to compensate for the many unknown or 
unpredictable factors affecting airplane-landing distances. In 1958, 
the CAB was petitioned to modify the 60% rule. In issuing an update in 
July of 1958 to CAR SR-422, the CAB stated:

    Strong representation has been made to the Board to the effect 
that the numerical factors applicable to the aforementioned rules 
are too high and should be reduced pending further experience. The 
Board considers that it would not be in the public interest to 
reduce any of these factors until such time as further experience 
indicates that they are in fact overly conservative. Realizing, 
however, that the issues are of considerable importance in 
prescribing a practical level of performance, the Board stands ready 
to reconsider the relevant provisions of this regulation at such 
time as substantiating information is received.

    No review of the 60% rule has been conducted in the intervening 
four decades.
    In the interim, the FAA has continually improved its guidelines 
regarding the accuracy and reliability of published airplane 
performance data. First adopted in 1964, FAR 25.21, ``Airworthiness 
Standards: Transport Category Airplanes,'' states that each flight 
certification requirement must be demonstrated ``by systematic 
investigation of each probable combination of weight and center of 
gravity.'' Additional guidance is published in AC 25-7, ``Flight Test 
Guide For Certification Of Transport Category Airplanes.'' This 
Advisory Circular states that ``[w]here variation in the parameter on 
which a tolerance is allowed will have an effect on the results of the 
test, the results should be corrected to the most critical value of the 
parameter within the operating envelope being approved.''
    With regard to determining landing distance for an Airplane Flight 
Manual (AFM), AC 25-7 also states, ``[m]ore (flight) tests will be 
necessary if the distribution of the data does not give sufficient 
confidence in the parametric correlation. Past experience has shown 
that 40 landings would establish a satisfactory confidence level 
without further analysis.''
    The following table indicates some of the landing distance factors 
that contribute to safe aircraft operations and are required for 
aircraft certification under current FAA regulations but were not 
required when the FAA instituted the 60% rule.

------------------------------------------------------------------------
                                                         Added safety
   Manufacturer's requirements          Result              margin
------------------------------------------------------------------------
Airborne Distance. Engines must   During landing at   Actual landing
 be set to the high side of the    flight idle,        distance will be
 flight idle trim band.            engines will        shorter than
                                   contribute the      calculated
                                   maximum amount of   landing distance.
                                   forward thrust
                                   when the
                                   throttles are in
                                   the flight idle
                                   position.
Airborne Distance. Steep          Actual glideslope   Actual landing
 approaches and high touchdown     must be within -    distance will be
 sink rates, formerly considered   2.5 degrees to -    shorter than
 ``traditional'', are ``no         3.5 degrees.        calculated
 longer considered acceptable''.   Touchdown sink      landing distance.
                                   rates must be 8
                                   feet per second
                                   or lower.
Airborne Distance. If derived,    The only time a     Actual landing
 data must show an upper bound     manufacturer may    distance will be
 to the Part 25 zero-wind          approximate         shorter than
 airborne distances achieved in    landing distance    calculated
 past certifications and minimum   using a standard    landing distance.
 speed (VREF) loss.                (FAA approved)
                                   equation is when
                                   data from past
                                   certifications is
                                   consistent and
                                   ``clustered''.
Airborne Distance. If derived,    Most touchdowns     Actual landing
 touchdown speed is assumed to     are at VREF -5      distance will be
 be VREF -3 knots.                 knots.              shorter than
                                                       calculated
                                                       landing distance.

[[Page 37529]]

 
Airborne Distance. If a           Somewhat steeper    Actual landing
 manufacturer includes data from   approaches over     distance will be
 steeper approaches and higher     the threshold, or   shorter than
 touchdown rates in a parametric   slightly higher     calculated
 analysis, the most the air        touchdown rates,    landing distance.
 distance (or speed) from 50       will reduce
 feet can be reduced is ten        landing distances
 percent. (The max. allowed        more than is
 glideslope is -3.5 degrees and    predicted in the
 the max. touchdown rate is 8      AFM.
 feet per second.).
Landing Distance. Wheel brake     In practice, wheel  Actual landing
 assemblies must be at the fully   brake assemblies    distance will be
 worn limit of their allowable     are most likely     shorter than
 wear range.                       to be above the     calculated
                                   fully worn limit.   landing distance.
Landing Time Delays. It is        This is a           Actual landing
 assumed that the pilot delays     conservative        distance will be
 activating the first              estimate of pilot   shorter than
 deceleration device (brakes       reaction time.      calculated
 etc.) until at least one second                       landing distance.
 after touchdown.
Landing Time Delays. It is        This is a           Actual landing
 assumed that the pilot delays     conservative        distance will be
 activating the second             estimate of pilot   shorter than
 deceleration device (brakes       reaction time.      calculated
 etc.) until at least one second                       landing distance.
 after activating the first
 deceleration device.
------------------------------------------------------------------------

    Business jets have operated in an identical environment as aircraft 
operated in part 135 on demand operations, but without the 60% rule, 
for many years. If the rule were necessary for this type of operation, 
business jets operated under part 91 should have a higher rate of 
runway overshoot events than on-demand operators under part 135. 
However, such a difference has not been observed. Aviation safety data 
indicate that the landing accident rates under part 91 and 135 during 
the previous twelve-year period were nearly identical. A report 
prepared by Robert E. Breiling Associates of Boca Raton, Florida 
concluded, ``it would appear that the 40% safety factor in present use 
for FAR 135 is excessive. A factor based on actual aircraft performance 
on contaminated runways with the inclusion of a 10% to 20% safety 
factor would be more appropriate.''
    Since the 1940s, when the 60% rule was first instituted, there have 
been significant advances in the accuracy of aircraft performance data 
and substantial technological improvements in aircraft stopping-system 
engineering and design. Consequently, the FOARC recommended changing 
the landing distance limitations requirement of part 135 to 85% for 
eligible on-demand operators. Over forty years of operating experience 
indicates this proposed rule would provide an appropriate margin of 
safety and, additionally, would subject both fractional ownership 
aircraft operations and eligible on-demand air charter flights to the 
same requirements. Proposed Secs. 91.1025, 91.1037, 135.23, 135.385 and 
135.387 would accomplish this in two ways. First, the full stop landing 
distance would be increased to 85% of the effective runway length for 
both the destination and alternate airports, consistent with the 
recommendations of the FOARC. Second, a fractional ownership program 
manager or an eligible on-demand operator would be allowed to include a 
Destination Airport Analysis procedure in its operating manual. This 
procedure, which would be reviewed and approved by the FAA using 
standards identical to those imposed on on-demand operators under 
amended Sec. 135.23, would allow the 85% stopping distance requirement 
to be exceeded if appropriate planning in the circumstances indicated 
that there would be no compromise of safety and an alternate airport is 
selected. The FAA invites comments on the criteria contained in 
Secs. 135.23 and 91.1025 for approval of a destination airport 
analysis. These options would be available only to fractional ownership 
program managers, who do not have any runway stopping requirement 
today, and to eligible on-demand operators who meet the flight crew 
experience, pilot operating limitations and pairing requirements of 
proposed Secs. 91.1053 and 91.1055.
    These proposed changes would ensure that the current best practices 
of fractional ownership program managers continue, while applying those 
same best practices to on-demand operators with equivalent crew 
training and experience requirements. The result would be a substantial 
expansion of the opportunities for on-demand operators without any 
compromise of safety. The table below, prepared for the FOARC by the 
General Aviation Manufacturers Association (GAMA), shows the effect of 
changing the landing distance for popular business aircraft types.

[[Page 37530]]

[GRAPHIC] [TIFF OMITTED] TP18JY01.000

    The most critical impact of the proposed rule is at airports with a 
single-runway. The table below, also prepared by GAMA for the FOARC, 
presents examples of single-airport runways where the proposed rule 
would allow part 135 operations previously restricted by the 60% rule.

----------------------------------------------------------------------------------------------------------------
                                                                                          Example of airplanes
   Example of single-runway airport      Runway length   Example of airplanes excluded    excluded solely by an
                                                            solely by the 60% rule              85% rule
----------------------------------------------------------------------------------------------------------------
Meigs Field, IL.......................           3,899  BE-400A, BE-800XP, CE-550, CE-  Lear 60.
                                                         650, CE-750, CL-604, DA-900B,
                                                         DA-2000, GIVSP, LR-31A, LR-
                                                         45, LR-60.
Bonifay, FL...........................           4,014  BE-400A, CE-650, CE-750, DA-    None.
                                                         2000, GIVSP, LR-31A, LR-45,
                                                         LR-60.
Los Angeles, CA (Whitman).............           4,120  BE-400A, CE-650, CE-750, DA-    None.
                                                         2000, GIVSP, LR-45, LR-60.
Covington, GA.........................           4,203  BE-400A, CE-750, DA-2000,       None.
                                                         GIVSP, LR-45, LR-60.
Hilton Head, SC.......................           4,300  BE-400A, CE-750, G-IVSP, LR-    None.
                                                         45, LR-60.
Glaskow, KY...........................           4,586  BE-400A, CE-750, LR-45, LR-60.  None.
Washington Court House, OH............           5,100  LR-60.........................  None.
----------------------------------------------------------------------------------------------------------------

Sections 91.1039, 135.1 and 135.225  IFR Takeoff, Approach and Landing 
Minimums

IFR Destination Airport Weather Reporting
    Section 135.225(a) prohibits an air carrier subject to that section 
from initiating an instrument approach at a destination airport unless 
that airport has a weather reporting facility on the field. Part 91 
does not impose a similar restriction on general aviation aircraft. The 
majority of U.S. airports used by general aviation aircraft do not have 
on-field weather reporting facilities, relying instead on the 
facilities at nearby airports.
    The FAA has considered several petitions for exemption from the 
requirement of Sec. 135.225(a). In most cases these petitions were 
denied, in part, because the petitioners failed to identify how their 
circumstances were different from the general class of regulated 
persons in order to justify relief by exemption. In a pending petition 
for rulemaking, the National Air Transportation Association, on behalf 
of its part 135 on-demand air charter membership, has asked for relief 
from the requirement subject to certain operational limitations.
    Following extensive discussion of the regulation, the FOARC 
concluded that the public can best be served, and an equivalent level 
of safety maintained, by permitting an alternative means of compliance 
with the destination airport weather reporting facility requirements 
under part 135, and applying the same provision in part 91, subpart K. 
This alternative requires the destination airport to have approved 
weather reporting or, if weather reporting is not available at the 
destination airport, then an alternate airport must be selected that 
does have weather reporting. Both the destination and the alternate 
airport, if required, must have a current local altimeter setting or a 
current alternate altimeter setting provided by the facility designated 
on the approach chart for that airport. Fractional ownership program 
aircraft operated under part 91 have successfully and safely operated 
under conditions and circumstances similar to those experienced by part 
135

[[Page 37531]]

operators. The FOARC examined available safety information, finding no 
evidence that safety has been compromised in part 91 fractional 
operations when an approved weather reporting facility is not available 
at a destination airport.
    The FAA is proposing that ``eligible on-demand charter operators'' 
be permitted to use an alternative means of compliance with the weather 
reporting requirement. The alternative means of compliance requires a 
weather report from a weather reporting facility at either the 
destination or an alternate airport and a current local altimeter 
setting for the destination and alternate airport. To ensure an 
equivalent level of safety, only ``eligible on-demand operators,'' as 
defined in proposed Sec. 135.1(b), may use this alternative means of 
compliance. ``Eligible on-demand operators'' would be those which meet 
the flight crew experience, pilot operating limitations and pairing 
requirements of proposed Secs. 91.1053 and 91.1055.
    An alternative means of compliance with Sec. 135.225(a) would 
benefit the public in that numerous communities would be able to gain 
access to air transportation via air charter operations to and from 
local airports that presently do not have an approved weather reporting 
facility. The benefits of air charter include emergency medical 
transportation, disaster relief, transportation of critical materials 
and personnel, and various economic benefits.
IFR Takeoff Minimums
    Currently, operators under part 91 may take off with zero 
visibility and ceiling. The best practices of many corporate operators 
have shown that a visibility requirement of approximately 600 feet, as 
determined by the pilot in command, provides a practical method for 
improving take off safety. Pilots can determine runway visibility by 
taxiing the length of the runway and using runway markings and lights 
as distance references.

Sections 91.1041 and 135.145  Aircraft Proving Tests

    The FOARC recommended that when a fractional ownership program 
first includes in its fleet an aircraft for which two pilots are 
required under the type certification requirements, or when such a 
program first includes in its fleet a turbojet airplane, a 25-hour 
proving test requirement similar to the one in existing Sec. 135.145 
should apply. However, the FOARC noted that Sec. 135.145(a) has been 
interpreted by the FAA to require proving tests whenever a new type of 
aircraft is added, even if that aircraft type is similar to existing 
aircraft in the operator's fleet. For several reasons, FOARC believed 
that the current proving test requirements of Sec. 135.145, as 
interpreted, are excessive, and that a narrowing of these requirements 
would not adversely affect aviation safety.
    First, the demonstrated historical safety of business aviation 
operations under part 91, which does not require proving tests, 
indicates that new aircraft types may be safely introduced in some 
circumstances without proving tests. Further, with respect to more 
complex types of aircraft utilization, e.g., those involving more 
complex systems of aircraft release and aircraft and personnel 
scheduling, the value of proving tests is primarily to demonstrate that 
satisfactory support systems are in place to facilitate the safe 
operation of the aircraft. The FOARC observed, however, that these 
support systems largely function independently of the aircraft make or 
design and do not require additional proving tests each time a 
different aircraft make or dissimilar aircraft design is introduced. 
Finally, the FOARC noted that the FAA retains its authority to inspect 
many aspects of early operations of new types of aircraft even when 
proving tests are not required, and that this broad authority applies 
to both simple and complex types of aircraft utilization.
    For these reasons, the FOARC recommended that proving tests be 
required for fractional ownership programs only for the initial 
operations of aircraft that fundamentally differ from aircraft already 
in a program's fleet. Recognizing that these reasons applied equally to 
part 135 operations, the FOARC recommended applying the narrowed 
proving test requirements to both fractional ownership program 
operations and part 135 operations. Accordingly, under proposed 
Sec. 91.1041 and proposed amendment to Sec. 135.145(a), proving tests 
would be required both for fractional ownership program aircraft and 
for part 135 aircraft only before the initial use of either an aircraft 
for which two pilots are required under the aircraft type certification 
requirements or a turbojet powered airplane.

Section 91.1045  Additional Equipment Requirements

    The FOARC recommended that a fractional ownership program aircraft 
on a program flight must be equipped with a cockpit voice recorder, 
flight recorder, ground proximity warning system, terrain awareness 
warning system, airborne thunderstorm detection equipment or airborne 
weather radar, and a traffic alert and collision avoidance system to 
the extent that such equipment would be required if that aircraft were 
operating under part 121 or 135. This conforms to the existing best 
practices of fractional ownership program managers and is consistent 
with maintaining an equivalent level of safety. Proposed Sec. 91.1045 
would extend these requirements to fractional ownership program 
aircraft, with the same accompanying applicability requirements as to 
size and type of aircraft currently applied to aircraft operated under 
part 121 or 135.

Sections 91.1047, 135.251 and 135.255  Drug and Alcohol Misuse Programs 
and Required Maintenance

    Proposed Sec. 91.1047(a) requires fractional ownership program 
managers to implement drug and alcohol misuse education programs for 
flight crew, flight instructors, flight attendants, and maintenance 
personnel who are the direct employees of the program manager. Proposed 
Sec. 91.1047(b) requires fractional ownership program managers who 
employ flight crew, flight instructor, flight attendants, or 
maintenance personnel indirectly, through contractors, to verify that 
each indirect employee has completed a drug and alcohol misuse 
education program.
    Although the FOARC did not support federally mandated testing 
programs for fractional ownership programs, the FOARC recognized the 
widespread voluntary implementation by industry of company testing 
programs. The FOARC unanimously recommended that fractional ownership 
program managers be required to disclose to owners and prospective 
owners the scope of the program manager's company drug and alcohol 
testing program, if any, and to compare it with the scope of federally 
mandated programs for air carriers. The FOARC believes that this 
disclosure requirement is necessary to permit the public to make 
educated decisions among the various air transportation and purchase 
options available in the marketplace. The FOARC stated that its intent 
was that this disclosure requirement, regarding prospective owners, 
would be satisfied if the required detailed disclosure is provided to a 
prospective owner sufficiently in advance of a share purchase to permit 
meaningful review.
    Although proposed subpart K does not contain a federally mandated 
alcohol or drug testing requirement, nothing in proposed subpart K is 
intended to prevent a fractional ownership program manager from 
voluntarily implementing a company

[[Page 37532]]

drug or alcohol testing program, consistent with applicable federal and 
state law that is separate and distinct from a federally mandated 
program required by Appendices I and J to part 121. Fractional 
ownership program managers can satisfy the requirements of 
Sec. 91.1047(a) and (b) by implementing drug and alcohol misuse and 
education programs modeled on air carrier programs, or by developing 
their own company programs. However, they cannot hold themselves as 
testing under the authority of the federally mandated drug and alcohol 
program (e.g., they cannot advise individuals that the company program 
is federally mandated nor can they use the federal drug and alcohol 
custody and control forms). The requirements of Sec. 91.1047(a) and (b) 
are satisfied if the subject employee has completed the training 
required under an air carrier drug and alcohol program, regardless of 
whether that program is operated by the fractional ownership program 
manager, an affiliated or related company, a subcontractor of the 
fractional ownership program manager or an unrelated company.
    During the course of the FOARC's deliberations on this subject, 
representatives of on-demand operators pointed out an issue in the 
comparable part 135 requirements. When emergency maintenance is 
required, such as a tire change, existing part 135 does not allow such 
maintenance to be performed at an airport that does not have available 
a maintenance provider properly enrolled and subject to the provisions 
of an FAA-approved drug and alcohol misuse program. Accordingly, the 
FOARC recommended that the drug and alcohol misuse program requirements 
in both part 91, subpart K and part 135 should provide an exception for 
emergency maintenance, provided that the FAA is advised in writing 
within 10 days after such an event. The emergency maintenance exception 
is limited to maintenance that is not scheduled and is made necessary 
by an aircraft condition that is not discovered prior to the departure 
for that location. Further, the airport must be one at which there are 
no available maintenance personnel subject to the drug and alcohol 
testing requirements of Appendices I and J of part 121. Finally, the 
part 135 exception would apply only to on-demand charter flights, 
flights that operate on a non-scheduled basis to diverse airports. The 
added requirement that all such emergency maintenance be reported to 
the Drug Abatement Program Division within ten days of its occurrence 
discourages abuse of this exception. This exception is set forth in 
proposed Secs. 91.1047(d), 135.251(c) and 135.255(c).

Sections 91.1049 Through 91.1107, 135.291, 135.321, 135.324, and 142.1  
Personnel Requirements; Flight, Duty and Rest Time Requirements; and 
Testing and Training

    The requirements relating to the qualifications, testing and 
training of crewmembers and flight, duty and rest time received 
considerable attention from the FOARC. Using previously developed 
industry guidelines and best practices as a starting point the FOARC 
recommended that proposed subpart K should include a comprehensive set 
of requirements intended to ensure that fractional ownership program 
managers continue to maintain a high level of safety. Those 
requirements are set forth in proposed Secs. 91.1049 through 91.1107. 
These sections establish new requirements for part 91 fractional 
ownership operations and reflect the unique characteristics of those 
operations.
    Proposed Sec. 91.1049(b) and (d) would require each program manager 
to staff, at a minimum, with three pilots per fractional ownership 
program aircraft and to operate with at least two qualified pilots on a 
flight when passengers are onboard. Proposed Sec. 91.1053(a) would 
require that each pilot of a program aircraft holds, in addition to 
applicable type ratings, an airline transport pilot rating (for multi-
engine turbine-powered fixed-wing or powered lift aircraft) or a 
commercial pilot rating (for all other aircraft). The three pilots per 
aircraft staffing requirement, the two pilots per aircraft operating 
requirement and the ratings requirement are based on the best practices 
of business aviation and are in substantial part responsible for the 
excellent safety record of that segment of general aviation. These 
requirements ensure that fully qualified and rested crews always are 
available and are onboard every passenger flight.
    The FOARC recognized that these requirements could impose an 
unnecessary burden on some operators of smaller equipment. Accordingly, 
proposed Sec. 91.1049(b) and (d) would allow the Administrator to make 
exceptions, as necessary, and proposed Sec. 91.1053(b) would allow the 
Administrator to grant deviations based on the size and scope of the 
operation or the type of aircraft operated. The intent of these 
provisions is to retain a high safety standard but to permit reasonable 
exceptions as justified by the facts of individual situations.
    Proposed Sec. 91.1051 would require a fractional ownership program 
pilot safety background check.
    Proposed Sec. 91.1055 would establish operating limitations and 
pairing requirements. For example, a second in command with fewer than 
100 hours of flight time flying for the program manager in that type of 
aircraft could not make a takeoff or landing in the designated 
situations where safety might be compromised.
    Proposed Sec. 91.1057 through 91.1061 would establish flight, duty 
and rest time requirements for pilots flying fractional ownership 
program aircraft on program flights. A comprehensive set of flight, 
duty and rest time requirements is proposed by the FOARC. The FOARC 
believes that the proposed flight crew duty and rest requirements are 
adequate to prevent undue fatigue, ensure the safety of fractional 
ownership program aircraft operations, and provide for these operations 
a degree of rest equivalent to or greater than that provided under 
regulations applicable to air carriers. For example, by defining 
standby status as a type of duty, proposed Sec. 91.1057 establishes a 
requirement that exceeds the requirements imposed on air carriers under 
either part 121 or part 135. Similarly, proposed Sec. 91.1057 would not 
only define reserve status, but would also require pilot acceptance of 
reserve status and require a minimum of ten hours of uninterrupted rest 
prior to entering that reserve status. Again, these provisions exceed 
the requirements currently imposed on air carriers.
    The FOARC believes that the requirements of proposed Sec. 91.1059 
also equal or exceed virtually all air carrier requirements. The sole 
exception is where flight time exceeds ten hours, with total duty time 
less than sixteen hours. In this case, part 135 would require sixteen 
hours of rest, while proposed Sec. 91.1059 would require a rest period 
equal to the total hours on duty. The FOARC believed that the stringent 
requirements that, in many cases, exceeded those imposed on air 
carriers created, in the context of the fractional ownership operating 
environment, a level of safety sufficient to justify the regulations.
    The duty and rest regulations proposed by the FOARC in this NPRM 
apply only in the context of fractional ownership programs.
    The proposed limitations are displayed in chart form consistent 
with the concept of ``plain language'' regulation. Because of concerns 
about Circadian rhythm patterns, minimum rest periods are established 
for east/west

[[Page 37533]]

flights that cross five or more time zones.
    Proposed Sec. 91.1057:
    (1) Defines a duty period,
    (2) Addresses ``Multi-time Zone'' flying,
    (3) Defines ``Standby'' status as duty,
    (4) Defines ``Reserve Status'' as not being duty but requires pilot 
acceptance and a minimum of 10 hours uninterrupted rest prior to 
entering reserve status,
    (5) Defines ``Extension of Normal Duty'' as an increase in the 
period of duty due to circumstances beyond the control of the program 
manager or flight crewmember (such as adverse weather) that are not 
known at the time of departure and that prevent the flightcrew from 
reaching the destination within the planned flight time,
    (6) Defines ``Planned Expanded Duty'' as the planned maximum flight 
and duty time and minimum rest that may be scheduled for long-range 
aircraft capable of exceeding 10 hours of flight unless the flightcrew 
is augmented by a third pilot,
    (7) Restricts a program manager from assigning duty during a rest 
period,
    (8) Requires that ``time spent in transportation not local in 
nature'' not be part of any rest period,
    (9) Requires a minimum of 10 consecutive hours of rest during the 
24-hour period that precedes that planned completion time of a duty 
assignment, and
    (10) Requires 13 rest periods in each calendar quarter.
    Since the FOARC presented its proposal to the FAA, a great deal of 
thinking has gone on in the aviation industry and the FAA regarding the 
flight and duty time issue. For example, a part 135 on-demand air 
charter industry task force has developed a concept paper proposing a 
new flight and duty time regulatory structure for that segment of the 
industry. The FAA is also considering several different approaches.
    One approach may be that part 91, subpart K flight, duty and rest 
requirements would be governed by the same flight, duty and rest rules 
that the part 135 on demand industry has to meet, i.e., sections 
135.267 and 135.269.
    Another approach might be to establish different flight, duty and 
rest standards for part 91, subpart K operators than the standards that 
would apply to the part 135 on demand industry.
    The FAA is open to different ideas regarding how to structure the 
flight and duty time portion of the proposed rule, and therefore 
solicits comments not only on the flight, duty and rest rules proposed 
in the NPRM, but also other possible regulatory structures, such as the 
one developed by the part 135 on-demand air charter industry task 
force. The FAA is presenting this proposal as it was proposed by the 
FOARC. The FAA may decide to adopt this proposal, substantially revise 
the proposal, or propose a completely new approach in a subsequent 
rulemaking. The FAA invites comments on the following provisions of 
this proposal:
    (1) Whether this proposal is appropriate for a single pilot 
operation permitted under the deviation provision contained in proposed 
section 91.1049.
    (2) Whether the FAA would be justified in promulgating different 
flight, duty, and rest requirements for this segment of the industry as 
compared to the requirements that apply to those operators subject to 
the requirements of 14 CFR parts 121 and 135.
    (3) Whether the reserve status definition contained in this 
proposal is adequate and would provide sufficient opportunity for rest 
outside of a flight crewmember's normal sleep cycle before that person 
is called to perform a flight assignment that could extend up to the 
proposed duty time limits in this proposal and whether this proposal 
should even contain a reserve status definition.
    (4) Whether duty limitations and rest requirements should be 
provided for flight attendants.
    Proposed Secs. 91.1063 through 91.1107 set forth the testing and 
training requirements for fractional ownership program flight crews. 
The requirements reflect the existing best practices of fractional 
ownership program managers and are tailored to reflect certain training 
and testing requirements of part 135. If authorized by the 
Administrator, a program manager may use the applicable training and 
testing requirements of subparts N and O of part 121. This reflects a 
similar provision currently available in part 135. Many program 
managers are also certificated as air carriers, and the same pilots and 
aircraft are used to support both operations. Where the training and 
testing program elements are the same for both the fractional program 
and a part 121 or 135 operation, the program manager may be authorized 
to use the applicable training and testing provisions of the part 121 
or 135 program to meet the training and testing requirements of subpart 
K. Where there are differences in the training and testing provisions 
of these programs, the flight crewmember must be trained and tested 
with respect to those differences. Similarly, where the training and 
testing program elements are the same for different fractional 
programs, the fractional ownership program manager may be authorized to 
use the applicable training and testing provisions of the other 
approved fractional training program to meet the training and testing 
requirements of subpart K, so long as the flight crewmember is trained 
and tested with respect to those differences.
    The requirement in section 91.1073 to conduct annually at least one 
``flight training session'' in an approved simulator may be satisfied 
by conducting the flight training portion of any training session 
otherwise required by subpart K of part 91 in an approved simulator. 
There would be no specific amount of simulator time necessary to 
satisfy this requirement.
    Minor corrections were made in sections 135.291, 135.321 and 
135.324 to change the term ``provide'' to ``conduct'', in reference to 
the conduct of training by part 142 training centers. Sections 91.1063 
and 91.1075 permit training center personnel authorized under part 142 
to conduct training, testing, and checking for fractional ownership 
programs. Conforming changes were made to section 142.1.

14 CFR Part 119

Section 119.1 and 125.1  Applicability

    Section 119.1 and 125.1 would be amended to include a reference to 
part 91, subpart K to make it clear that parts 119 and 125 are not 
applicable to administrative flights conducted by the program manager 
or flights conducted by fractional owners using fractional ownership 
program aircraft. This would make it clear that operations of 
fractional ownership program aircraft having more than 20 seats or a 
maximum payload capacity of 6,000 pounds or more may be conducted under 
part 91, subpart K without the need for part 125 certification or a 
deviation from part 125, which is warranted based on the equivalent 
level of safety provided in subpart K for aircraft utilized in 
fractional ownership programs.

14 CFR Part 135

Section 135.247  Pilot Qualifications: Recent Experience

    On April 30, 1999, the FAA amended Sec. 61.57 to provide an 
alternate means of compliance for pilots of type-rated aircraft to 
maintain night recency of experience. The FOARC recommended that due to 
the similar nature of operations and aircraft used, pilots used for on-
demand part 135 operations also should be able to maintain night 
recency of experience using this alternate means of compliance.

[[Page 37534]]

Paperwork Reduction Act

    The proposed amendment to 14 CFR part 91 contains information 
collection requirements. In accordance with the Paperwork Reduction Act 
of 1995, 44 U.S.C. 3501 et seq., the information collection 
requirements associated with this rule are being submitted to the 
Office of Management and Budget (OMB) for review. Following is a 
summary of the information requirement that was sent to OMB.
    This rule proposes new regulations governing fractional ownership 
operations and revisions to certain sections of part 135 on demand 
operations. This proposed rule would require fractional ownership 
aircraft program managers, aircraft owners, and certain air carriers to 
provide information to determine if they are operating in accordance 
with the minimum safety standards of these proposed regulations. The 
burden is required for application for operating authority, pilot 
record keeping, management specifications, contractual requirements, 
manual and training program development and approvals, and other 
reporting and record keeping items. The total paperwork burden is 
estimated at approximately 178,400 hours annually.
    The FAA considers comments by the public on the proposed collection 
of information in order to:
    a. Evaluate whether the proposed collection of information is 
necessary for the proper performance of functions of the agency, 
including whether the information will have practical utility;
    b. Evaluate the accuracy of the agency' estimate of the burden of 
the proposed collection of information including the validity of the 
methodology and assumptions used;
    c. Enhance the quality, utility, and clarity of the information to 
be collected; and
    d. Minimize the burden of the collection of information on those 
who are to respond, including through the use of appropriate automated, 
electronic, mechanical, or other technological collection techniques or 
other forms of information technology, e.g., permitting electronic 
submission of responses.
    Comments on the proposed information collection requirements should 
be submitted to the rulemaking docket at the address indicated in the 
ADDRESSES section of this notice.
    According to the regulations implementing the Paperwork Reduction 
Act of 1995, (5 CFR 1320.8(b)(2)(vi)), an agency may not conduct or 
sponsor and a person is not required to respond to a collection of 
information unless it displays a currently valid OMB control number. 
The OMB control number for this information collection will be 
published in the Federal Register after it is approved by the Office of 
Management and Budget.

Regulatory Evaluation Summary

Overview

    Proposed and final rule changes to Federal regulations must undergo 
several economic analyses. First, Executive Order 12866 directs that 
each Federal agency propose or adopt a regulation only upon a reasoned 
determination that the benefits of the intended regulation justify its 
costs. Second, the Regulatory Flexibility Act of 1980 requires agencies 
to analyze the economic impact of regulatory changes on small entities. 
Third, the Trade Agreements Act (19 U.S.C. 2531-2533) prohibits 
agencies from setting standards that create unnecessary obstacles to 
the foreign commerce of the United States. In developing U.S. 
standards, the Trade Agreements Act also requires agencies to consider 
international standards and, where appropriate, use them as the basis 
of U.S. standards. Fourth, the Unfunded Mandates Reform Act of 1995 
requires agencies to prepare a written assessment of the costs, 
benefits, and other effects of proposed or final rules that include a 
Federal mandate likely to result in the expenditure by State, local, or 
tribal governments, in the aggregate, or by the private sector, of $100 
million or more annually (adjusted for inflation).
    In conducting these analyses, the Federal Aviation Administration 
(FAA) has determined that the proposed rule (1) has benefits that do 
justify its costs, is significant as defined in the Executive Order, 
and is significant as defined in the Department of Transportation's 
Regulatory Policies and Procedures; (2) will not have a significant 
impact on a substantial number of small entities; (3) will not 
constitute a barrier to international trade; and (4) does not impose an 
unfunded mandate on State, local, or tribal governments, or on the 
private sector. These analyses are available in the docket and are 
summarized below.

Background

    The FAA proposes to develop new regulations for fractional aircraft 
ownership programs. The proposed rule, if adopted, would create a new 
subpart K within part 91 of Title 14, Code of Federal Regulations (14 
CFR) and make significant changes to 14 CFR part 135. The proposed rule 
would establish new requirements and revisions in a variety of areas, 
including crew training, pilot qualifications, pilot rest, flight time 
and duty time limits, landing distance performance, operating 
limitations, program operating manuals, and administrative 
requirements. The codification of rules under part 91, subpart K for 
this segment of aviation, which previously had been regulated like 
corporate aviation, is in response to a significant increase in the 
number of fractional aircraft ownership operations and some concerns 
pertaining to who has responsibility for operational control. The 
proposed requirements are based primarily on corporate aviation ``best 
practices.'' Many of these practices, while not currently mandated by 
part 91 regulations, are used by most fractional aircraft ownership 
program entities.
    Except for the statutory amendment relating to management 
specifications, discussed above, the proposed rule is consistent with 
the FAA's authority to regulate fractional aircraft ownership programs 
under Title 49 of the United States Code. Exercise of this authority, 
as implemented by the proposed regulation, is intended to regulate and 
ensure aviation safety. Specifically, the FAA is committed to providing 
an aerospace system that efficiently meets the needs of users.
    The proposed rule is expected to impose a total estimated cost of 
approximately $22.6 million (undiscounted) in 1999 dollars on 
fractional operations and the FAA over the 15-year period from 2002 to 
2016. Fractional aircraft ownership operations are expected to incur 
approximately 91 percent of these total costs, or $20.5 million 
(undiscounted), complying with the regulatory requirements. Only 
eligible fractional aircraft ownership program managers and the 
fractional aircraft owners (fractional aircraft ownership entities) who 
would be subject to the proposed part 91, subpart K requirements would 
incur compliance costs. The FAA is expected to incur the remaining 9 
percent of the total estimated cost, or approximately $2.1 million 
(undiscounted), administering the proposed rule.

Fractional Aircraft Ownership Operations Compliance Costs

    Certain sections of the proposed rule are expected to impose 
compliance costs on fractional aircraft ownership operations. These 
compliance costs are summarized below.

[[Page 37535]]

Section 91.519, Passenger Briefing, and Section 91.1035, Passenger 
Awareness

    A fractional aircraft ownership program entity operating under part 
91, subpart K would incur costs of $100 for every aircraft to comply 
with the proposed requirement. Over the 15-year period from 2002 to 
2016, fractional aircraft ownership operations collectively would incur 
compliance costs of approximately $61,000.

Section 91.1003, Management Contract Between Owner and Program Manager

    A fractional aircraft ownership program entity operating under part 
91, subpart K would incur compliance costs represented by attorney fees 
of $500 and mailing expenses of $20 for each shareholder to comply with 
the requirement of the proposed rule. Over the 15-year period from 2002 
to 2016, fractional aircraft ownership operations (operating under part 
91, subpart K) collectively would incur compliance costs of 
approximately $143,000.

Section 91.1015, Management Specifications

    A fractional aircraft ownership program entity operating under part 
91, subpart K would incur compliance costs of $120,000 in the first 
year of operation and $6,000 annually in subsequent years to comply 
with this requirement. Over the 15-year period from 2002 to 2016, 
fractional aircraft ownership program operations (operating under part 
91, subpart K) collectively would incur compliance costs of 
approximately $2.1 million.

Section 91.1017, Amending Program Manager's Management Specifications

    A fractional aircraft ownership program entity operating under part 
91, subpart K would incur compliance costs of $150 annually to comply 
with this requirement. Over the 15-year period from 2002 to 2016, 
fractional aircraft ownership program operations (operating under part 
91, subpart K) collectively would incur compliance costs of 
approximately $19,400.

Section 91.1019, Conducting Tests and Inspections

    A fractional aircraft ownership program entity operating under part 
91, subpart K would incur recordkeeping costs to comply with this 
requirement. These costs are captured in Sec. 91.1027. Additional costs 
to accommodate an inspection or test would be negligible and are 
estimated to be zero.

Section 91.1023, Program Operating Manual Requirements

    A fractional aircraft ownership program entity operating under part 
91, subpart K would incur compliance costs of $10,000 in the first year 
of operation only. Over the 15-year period from 2002 to 2016, 
fractional aircraft ownership program operations collectively would 
incur compliance costs of $120,000.

Section 91.1027, Recordkeeping \1\

    A fractional aircraft ownership program entity operating under part 
91, subpart K would incur compliance costs of $5,000 in the first year 
of operation only. Over the 15-year period from 2002 to 2016, 
fractional aircraft ownership program operations collectively would 
incur compliance costs of $60,000.
---------------------------------------------------------------------------

    \1\ Captures recordkeeping compliance costs attributable to 
Secs. 91.1057 and 91.1061.
---------------------------------------------------------------------------

Section 91.1033, Operating Information Required

    A fractional aircraft ownership program entity operating under part 
91, subpart K would incur negligible costs to comply with this 
requirement. Accordingly, these costs are estimated to be zero.

Section 91.1037, Large Transport Category Airplanes: Turbine Engine 
Powered: Limitations: Destination and Alternate Airports

    There are insufficient data to estimate the opportunities available 
to fractional aircraft ownership program entities and the associated 
positive impact on revenues. The FAA solicits information to resolve 
this matter.

Section 91.1039, IFR Takeoff, Approach, and Landing Minimums

    A fractional aircraft ownership program entity operating under part 
91, subpart K would incur negligible costs to comply with this 
requirement. Accordingly, these costs are estimated to be zero.

Section 91.1041, Aircraft Proving Tests \2\

    A fractional aircraft ownership program entity operating under part 
91, subpart K would incur compliance costs of $9,000 for proving tests 
per aircraft. One-third of each entities existing fleet in the first 
year of operation and one-third of all new aircraft acquired in 
subsequent years of operation would require proving tests. (The number 
of new aircraft in subsequent years of operation is the difference 
between the subject year and the previous year.) Over the 15-year 
period from 2002 to 2016, fractional aircraft ownership program 
operations collectively would incur compliance costs of approximately 
$1.6 million.
---------------------------------------------------------------------------

    \2\ Estimated by Phaneuf Associates Incorporated based on 
information developed by the Federal Aviation Administration, Office 
of Aviation Policy and Plans contained in the report title Final 
Regulatory Evaluation and International Trade Impact Assessment, 
Commuter Operations and General Certification and Operations 
Requirements, Final Rule (14 CFR Parts 119, 121, 125, 127, and 135), 
October 17, 1995.
---------------------------------------------------------------------------

Section 91.1045, Additional Equipment Requirements

    A fractional aircraft ownership program entity operating under part 
91, subpart K would incur compliance costs of $150,000 for 30 percent 
of the year 2002 fleet only, as subsequent aircraft would be 
appropriately equipped voluntarily by the manufacturer consistent with 
regulatory requirements and evolving technology. Over the 15-year 
period from 2002 to 2016, fractional aircraft ownership program 
operations (operating under part 91, subpart K) collectively would 
incur compliance costs of approximately $13.9 million.

Section 91.1047, Drug and Alcohol Misuse Program

    A fractional aircraft ownership program entity operating under part 
91, subpart K would incur negligible costs to comply with this 
requirement. Accordingly, these costs are estimated to be zero.

Section 91.1051, Pilot Safety Background Check

    A fractional aircraft ownership program entity operating under part 
91, subpart K would incur negligible costs to comply with this 
requirement. Accordingly, these costs are estimated to be zero.

Section 91.1057, Flight, Duty, and Rest Time Requirements

    A fractional aircraft ownership program entity operating under part 
91, subpart K would incur recordkeeping costs to comply with this 
requirement. These costs are captured in the analysis of Sec. 91.1027.

Section 91.1061, Augmented Flight Crews

    A fractional aircraft ownership program entity operating under part 
91, subpart K would incur recordkeeping costs to comply with this 
requirement. These costs are captured in the analysis of 
Sec. 91.1027.\3\
---------------------------------------------------------------------------

    \3\ Operating costs associated with augmenting flight crews, 
such as salaries, training, drug and alcohol misuse program, and 
other administrative program costs are captured under the specific 
requirements addressing these areas.

---------------------------------------------------------------------------

[[Page 37536]]

Section 91.1063 Through 91.1107, Various Training

    A fractional aircraft ownership program entity operating under part 
91, subpart K would incur compliance costs of $200,000 in the first 
year of operation only. Over the 15-year period from 2002 to 2016, 
fractional aircraft ownership program operations collectively would 
incur compliance costs of $2.4 million.

Section 91.1115, Minimum Equipment Lists and Letters of Authorization

    A fractional aircraft ownership program entity operating under part 
91, subpart K would incur costs of $5,000 in the first year of 
operation only to comply with this requirement. Negligible compliance 
costs would be incurred in subsequent years of operation and are 
estimated as to be zero. Over the 15-year period from 2002 to 2016, 
fractional aircraft ownership operations collectively would incur 
compliance costs of $60,000.

Section 135.21, Operating Requirements: Commuter and On-Demand 
Operations: Applicability

    A fractional aircraft ownership program entity operating under part 
135 would incur negligible costs to comply with this requirement. 
Accordingly, these costs are estimated to be zero.

Section 135.23, Operating Requirements: Commuter and On-Demand 
Operations: Applicability

    There are insufficient data to estimate the cost to a fractional 
aircraft ownership program entity to comply with this requirement. The 
FAA solicits information to resolve this matter.

Federal Aviation Administration Costs

    The current FAA workforce would be sufficient to perform the 
monitoring and surveillance activities associated with administering 
the requirements of the proposed rule. However, the FAA would need to 
develop a training course and associated instructional materials to 
educate its inspectors and supervisors in their responsibilities to 
administer the proposed rule. Accordingly, the FAA estimates that it 
would incur $700,000 in the first year to appropriately train its 
workforce and would incur $50,000 in subsequent years for refresher 
training. Additionally, the FAA would incur $653,000 in the first year 
to prepare and implement management specifications for the requirements 
in the proposed rule. Over the 15-year period from 2002 to 2016, the 
FAA would incur costs of approximately $2.1 million to administer the 
requirements of the proposed rule.

Benefits

    Most fractional aircraft ownership program operations today are 
conducted in accordance with industry best practices that exceed part 
91 requirements. It is the consensus of the FAA and fractional aircraft 
ownership program entities that these practices have resulted in an 
excellent safety record. The FAA has determined that the proposed rule 
is necessary to maintain the level of safety of these operations. The 
FAA has further determined that the preservation of the current safety 
levels justifies the costs of this rule.

Other Impacts of the Proposed Rule

    Cost savings and revenue-increasing business opportunities that may 
be realized by fractional aircraft ownership program entities and on-
demand air charter operations as a result of the proposed rule. These 
impacts are summarized below.

Section 61.57, Exceptions, and Section 135.247, Pilot Qualifications: 
Recent Experience

    A fractional aircraft ownership program entity operating under 
either part 91, subpart K or part 135 would realize annual cost savings 
of $3,000 per pilot as a result of complying with the proposed 
requirement. Over the 15-year period from 2002 to 2016, fractional 
aircraft ownership program operations collectively would realize cost 
savings of approximately $149.5 million.

Section 91.509, Survival Equipment for Over-Water Operations, and 
Section 135.167, Emergency Equipment: Extended Over-Water Operations

    A fractional aircraft ownership program entity operating under 
either part 91, subpart K or part 135 would realize cost savings of 
approximately $3,500 per trip. Over the 15-year period from 2002 to 
2016, fractional aircraft ownership operations collectively would 
realize cost savings of $252.6 million.

Section 135.145, Aircraft Proving Tests

    A fractional aircraft ownership program entity operating under part 
135 would realize cost savings of $35,000 per proving test complying 
with this requirement. Over the 15-year period from 2002 to 2016, 
fractional aircraft ownership program operations (under part 135) 
collectively would realize cost savings of approximately $9.4 million.

Section 135.225, IFR: Takeoff, Approach, and Landing

    A fractional aircraft ownership program entity operating under part 
135 would realize $35,000 annually in revenue as a result of this 
requirement. Over the 15-year period from 2002 to 2016, fractional 
aircraft ownership program operations (operating under part 135) 
collectively would realize approximately $1.5 million in revenue.

Section 135.251, Testing for Prohibited Drugs

    This proposal would represent a narrowly defined exception and is 
expected to be exercised only occasionally. Accordingly, there are 
insufficient data to estimate the potential additions to fractional 
aircraft ownership program revenue that may result from this section of 
the proposed rule. The FAA solicits information to resolve this matter.

Section 135.255, Testing for Alcohol

    This proposal would represent a narrowly defined exception and is 
expected to be exercised only occasionally. Accordingly, there are 
insufficient data to estimate the potential additions to fractional 
aircraft ownership program revenue that may result from this section of 
the proposed rule. The FAA solicits information to resolve this matter.

Section 135.385, Large Category Airplanes: Turbine Engine Powered: 
Landing Limitations: Destination Airports, and Section 135.387, Large 
Category Airplanes: Turbine Engine Powered: Landing Limitations: 
Alternate Airports

    A fractional aircraft ownership program entity operating under part 
135 would realize $40,000 annually in increased revenues as a result of 
this requirement. Over the 15-year period from 2002 to 2016, fractional 
aircraft ownership operations collectively would realize approximately 
$1.7 million in revenue.

Summary of Costs and Benefits

    The total costs of the proposed rule are approximately $22.6 
million (undiscounted 1999 dollars). Fractional aircraft ownership 
program entities would incur approximately 91 percent of these costs, 
while the FAA would incur approximately 9 percent of the total costs. 
Fractional aircraft ownership program entities would realize 
approximately $413 million in cost savings and $1.7 million in 
potential additional revenue. The public is expected to benefit from 
enhanced aviation safety directly attributable to the proposed rule. 
These costs are summarized in Table S-1.

[[Page 37537]]



                Table S-1.--Summary of Costs and Benefits
                            [In 1999 Dollars]
------------------------------------------------------------------------
                Category                   Undiscounted    Discounted a
------------------------------------------------------------------------
Fractional Aircraft Ownership Program
 Operations Compliance Costs for
 Entities Operating Under:
    Part 91, subpart K..................     $20,514,870     $17,756,346
    Part 135............................               0               0
                                         -------------------------------
        Total...........................      20,514,870       1,673,153
                                         ===============================
FAA Administrative Costs................       2,053,000       1,673,153
                                         -------------------------------
        Total Costs.....................      22,567,870      19,429,499
                                         ===============================
Potential Costs Savings to Fractional
 Aircraft Ownership Program Entities
 Operating Under:
    Part 91, subpart K..................     116,286,000      66,389,038
    Part 135............................     296,676,000     171,104,030
                                         -------------------------------
        Total...........................     412,962,000     237,493,068
                                         ===============================
Potential Revenue Opportunities to
 Fractional Aircraft Ownership Program
 Entities Operating Under:
    Part 91, subpart K..................               0               0
    Part 135............................       1,720,000         975,551
                                         -------------------------------
        Total...........................       1,720,000        975,551
------------------------------------------------------------------------
a Discounted at 7 percent over a 15-year period from 2002 to 2016.

Initial Regulatory Flexibility Determination

    The Regulatory Flexibility Act of 1980 (RFA) establishes ``as a 
principle of regulatory issuance that agencies shall endeavor, 
consistent with the objective of the rule and applicable statutes, to 
fit regulatory and informational requirements to the scale of the 
business, organizations, and governmental jurisdictions subject to 
regulation.'' To achieve that principle, the Act requires agencies to 
solicit and consider flexible regulatory proposals and to explain the 
rationale for their actions. The Act covers a wide-range of small 
entities, including small businesses, not-for-profit organizations, and 
small governmental jurisdictions.
    Agencies must perform a review to determine whether a proposed or 
final rule will have a significant economic impact on a substantial 
number of small entities. If the determination is that it will, the 
agency must prepare a regulatory flexibility analysis as described in 
the Act.
    However, if an agency determines that a proposed or final rule is 
not expected to have a significant economic impact on a substantial 
number of small entities, section 605(b) of the 1980 act provides that 
the head of the agency may so certify and an regulatory flexibility 
analysis is not required. The certification must include a statement 
providing the factual basis for this determination, and the reasoning 
should be clear.
    The FAA has determined that the proposed rule would potentially 
impact 12 small businesses, and for the purposes of this analysis, has 
assumed all these firms would operate under subpart K of part 91, 
imposing on an entity average compliance costs of approximately $1.7 
million over the 15-year period (in 1999 dollars). The annualized 
compliance cost to each small business would be approximately $157,000 
(in 1999 dollars) which the current operators have stated would be 
voluntarily incurred. Furthermore, 6 of these 12 entities would be new 
entrants. The FAA has determined that the proposed rule would 
potentially impose on each new (small business) entrant an average 
compliance cost of approximately $655,100 over the 15-year period (in 
1999 dollars). The annualized compliance cost to each new entrant is 
approximately $69,500 (in 1999 dollars). The FAA does not have 
information on the revenues of these small entrants but based on 
information about one of the current operators, the FAA estimates that 
a program aircraft generates approximately $4.6 million in revenues. If 
a new entrant has two aircraft, the cost that this proposed rule would 
impose on it is less than one percent of the approximate revenues 
generated by those two aircraft. Hence, the FAA has determined that the 
estimated compliance costs expected to be incurred by existing 
fractional aircraft ownership programs and new entrants over the 15-
year period would be marginal. Therefore, the proposed rule would not 
result in a significant economic impact to a substantial number of 
small entities. The FAA invites comments on the validity of all data, 
assumptions, and assertions, and any related potential impacts.

International Trade Impact Assessment

    The Trade Agreement Act of 1979 prohibits Federal agencies from 
engaging in any standards or related activities that create unnecessary 
obstacles to the foreign commerce of the United States. Legitimate 
domestic objectives, such as safety, are not considered unnecessary 
obstacles. The statute also requires consideration of international 
standards and, where appropriate, that they be the basis for U.S. 
standards. In addition, consistent with the Administration's belief in 
the general superiority and desirability of free trade, it is the 
policy of the Administration to remove or diminish to the extent 
feasible, barriers to international trade, including both barriers 
affecting the export of American goods and services to foreign 
countries and barriers affecting the import of foreign goods and 
services into the United States.
    In accordance with the above statute and policy, the FAA has 
assessed the potential effect of this proposed rule and has determined 
that it would impose the same costs on domestic entities and on 
international entities and thus has a neutral trade impact.

Unfunded Mandates Act of 1995 Assessment

    The Unfunded Mandates Reform Act of 1995 (the Act), enacted as 
Public Law 104-4 on March 22, 1995, is intended, among other things, to 
curb the practice

[[Page 37538]]

of imposing unfunded Federal mandates on State, local, and tribal 
governments.
    Title II of the Act requires each Federal agency to prepare a 
written statement assessing the effects of any Federal mandate in a 
proposed or final rule that may result in a $100 million or more 
expenditure (adjusted annually for inflation) in any one year by State, 
local, and tribal governments, in the aggregate, or by the private 
sector; such a mandate is deemed to be a ``significant regulatory 
action.''
    This proposed rule does not contain such a mandate. Therefore, the 
requirements of Title II of the Unfunded Mandates Reform Act of 1995 do 
not apply.

Federalism Implications

    The regulations proposed herein would not have substantial direct 
effects on the states, on the relationship between the national 
government and the states, or on the distribution of power and 
responsibilities among the various levels of government. Therefore, in 
accordance with Executive Order 13132, dated August 4, 1999, it is 
determined that this proposal would not have sufficient federalism 
implications to warrant the preparation of a Federalism Assessment.

Compatibility With ICAO Standards

    In keeping with the U.S. obligation under the Convention of 
International Civil Aviation, it is the FAA's policy to comply with the 
Standards and Recommended Practices of the International Civil Aviation 
Organization (ICAO) to the maximum extent practicable. ICAO does not 
specifically address fractional ownership. However, in view of the 
FAA's conclusion that fractional ownership program operations conducted 
in conformity with proposed subpart K of 14 CFR part 91 are general 
aviation activities, this proposed rule is not expected to conflict 
with ICAO international standards applicable to international general 
aviation operations.

Environmental Analysis

    FAA Order 1050.1D defines the FAA actions that may be categorically 
excluded from preparation of a National Environmental Policy Act (NEPA) 
environmental assessment or environmental impact statement. In 
accordance with the FAA Order 1050.1D, appendix 4, paragraph 4(j), this 
rulemaking action qualifies for a categorical exclusion.

Energy Impact

    The energy impact of the proposed rule has been assessed in 
accordance with the Energy Policy and Conservation Act (EPCA) and Pub. 
L. 94-163, as amended (42 U.S.C. 6362). It has been determined that it 
is not a major regulatory action under the provisions of the EPCA.

List of Subjects

14 CFR Part 13

    Administrative practice and procedure, Investigations, Law 
enforcement, Penalties.

14 CFR Part 61

    Aircraft, Airmen, Recreation and recreation areas, Reporting and 
recordkeeping requirements.

14 CFR Part 91

    Aircraft, Airworthiness directives and standards, Aviation safety, 
Safety.

14 CFR Part 119

    Administrative practice and procedure, Air carriers, Aircraft, 
Aviation safety, Charter flights, Reporting and recordkeeping 
requirements.

14 CFR Part 125

    Aircraft, Airmen, Aviation safety, Reporting and recordkeeping 
requirements.

14 CFR Part 135

    Aircraft, Airplanes, Airworthiness, Airmen, Rotorcraft, Aviation 
safety, Safety.

14 CFR Part 142

    Training center.

The Proposed Amendment

    In consideration of the foregoing, the Federal Aviation 
Administration proposes to amend parts 13, 61, 91, 119, 125, 135 and 
142 of Title 14, Code of Federal Regulations (14 CFR parts 13, 61, 91, 
119, 125, 135, and 142) as follows:

PART 13--INVESTIGATION AND ENFORCEMENT PROCEDURES

    1. The authority citation for part 13 continues to read as follows:

    Authority: 18 U.S.C. 6002; 28 U.S.C. 2461 (note); 49 U.S.C. 
106(g), 5121-5124, 40113-40114, 44103-44106, 44702-44703, 44709-
44710, 44713, 46101-46110, 46301-46316, 46501-46502, 46504-46507, 
47106, 47111, 47122, 47306, 47531-47532.

    2. Amend Sec. 13.19 by redesignating paragraphs (c) and (d) as 
paragraphs (d) and (e) and revising them, and by adding a new paragraph 
(c) to read as follows:


Sec. 13.19  Certificate and management specifications action.

* * * * *
    (c) If, as a result of any inspection, examination, or other 
investigation of a fractional ownership program manager managing a 
fractional ownership program operating under the authority of subpart K 
of part 91 of this chapter, the Administrator determines that the 
public interest and safety in air commerce requires it, the 
Administrator may issue an order suspending or revoking all or part of 
the management specifications previously issued to the program manager 
under subpart K of part 91 of this chapter. This authority is also 
exercised by the Chief Counsel; the Assistant Chief Counsel, 
Enforcement; the Assistant Chief Counsel, Regulations; the Assistant 
Chief Counsel, Europe, Africa, and Middle East Area Office; each 
Regional Counsel; and the Aeronautical Center Counsel.
    (d)(1) Before issuing an order under paragraph (b) or (c) of this 
section, the Chief Counsel; the Assistant Chief Counsel, Enforcement; 
the Assistant Chief Counsel, Regulations; the Assistant Chief Counsel, 
Europe, Africa, and Middle East Area Office; each Regional Counsel; or 
the Aeronautical Center Counsel advises the certificate holder or 
management specifications holder of the charges or other reasons upon 
which the Administrator bases the proposed action and, except in an 
emergency, allows the holder to answer any charges and to be heard as 
to why the certificate should not be amended, suspended, or revoked, or 
in the case of management specifications, why the management 
specifications should not be suspended or revoked. The holder may, by 
checking the appropriate box on the form that is sent to the holder 
with the notice of proposed certificate action, elect to--
    (i) Admit the charges and surrender his or her certificate or 
management specifications;
    (ii) Answer the charges in writing;
    (iii) Request that an order be issued in accordance with the notice 
of proposed certificate action or notice of proposed management 
specifications action so that the certificate holder may appeal to the 
National Transportation Safety Board, if the charges concerning a 
matter under Title VI of the FA Act;
    (iv) Request an opportunity to be heard in an informal conference 
with the FAA counsel; or
    (v) Request a hearing in accordance with Subpart D of this part if 
the charges concern a matter under Title V of the FA Act.
    (2) Except as provided in Sec. 13.35(b), unless the certificate 
holder or

[[Page 37539]]

management specifications holder returns the form and, where required, 
an answer or motion, with a postmark of not later than 15 days after 
the date of receipt of the notice, the order of the Administrator is 
issued as proposed. If the certificate holder or management 
specifications holder has requested an informal conference with the FAA 
counsel and the charges concern a matter under Title V of the FA Act, 
the holder may after that conference also request a formal hearing in 
writing with a postmark of not later than 10 days after the close of 
the conference. After considering any information submitted by the 
certificate holder or management specifications holder, the Chief 
Counsel, the Assistant Chief Counsel for Regulations and Enforcement, 
the Regional Counsel concerned, or the Aeronautical Center Counsel (as 
to matters under Title V of the FA Act) issues the order of the 
Administrator, except that if the holder has made a valid request for a 
formal hearing on a matter under Title V of the FA Act initially or 
after an informal conference, Subpart D of this part governs further 
proceedings.
    (e) Any person whose certificate or management specifications is 
affected by an order issued under this section may appeal to the 
National Transportation Safety Board. If the certificate holder or 
management specifications holder files an appeal with the Board, the 
Administrator's order is stayed unless the Administrator advises the 
Board that an emergency exists and safety in air commerce requires that 
the order become effective immediately. If the Board is so advised, the 
order remains effective and the Board shall finally dispose of the 
appeal within 60 days after the date of the advice. This paragraph does 
not apply to any person whose Certificate of Aircraft Registration is 
affected by an order issued under this section.

PART 61--CERTIFICATION: PILOTS, FLIGHT INSTRUCTORS, AND GROUND 
INSTRUCTORS

    3. The authority citation for part 61 continues to read as follows:

    Authority: 49 U.S.C. 106(g), 40113, 44701-44703, 44707, 44709-
44711, 45102-45103, 45301-45302.

    4. Amend Sec. 61.57 by revising paragraph (e)(3) as follows:

Subpart A--General


Sec. 61.57(e)  Exceptions.

* * * * *
    (3) Paragraph (b) of this section does not apply to a pilot in 
command of a turbine-powered airplane that requires more than one pilot 
crewmember, provided that pilot has complied with the requirements of 
paragraph (e)(3)(i) or (ii) of this section:
    (i) The pilot in command must hold at least a commercial pilot 
certificate with the appropriate category, class, and type rating for 
each airplane that pilot seeks to operate under this alternative, and:
    (A) That pilot must have logged at least 1,500 hours of 
aeronautical experience as a pilot;
    (B) In each airplane the pilot seeks to operate under this 
alternative, that pilot must have accomplished and logged the daytime 
takeoff and landing recent flight experience of paragraph (a) of this 
section, as the sole manipulator of the flight controls;
    (C) Within the preceding 90 days prior to the operation of that 
airplane, the pilot must have accomplished and logged at least 15 hours 
of flight time in the type of airplane that the pilot seeks to operate 
under this alternative; and
    (D) That pilot has accomplished and logged at least 3 takeoffs and 
3 landings to a full stop, as the sole manipulator of the flight 
controls, in a turbine-powered airplane that requires more than one 
pilot crewmember. The pilot must have performed the takeoffs and 
landings during the period beginning 1 hour after sunset and ending 1 
hour before sunrise within the preceding 6 calendar months prior to the 
month of the flight.
    (ii) The pilot in command must hold at least a commercial pilot 
certificate with the appropriate category, class, and type rating for 
each airplane that pilot seeks to operate under this alternative, and:
    (A) That pilot must have logged at least 1,500 hours of 
aeronautical experience as a pilot;
    (B) In each airplane the pilot seeks to operate under this 
alternative, that pilot must have accomplished and logged the daytime 
takeoff and landing recent flight experience of paragraph (a) of this 
section, as the sole manipulator of the flight controls;
    (C) Within the preceding 90 days prior to the operation of that 
airplane, the pilot must have accomplished and logged at least 15 hours 
of flight time in the type of airplane that the pilot seeks to operate 
under this alternative; and
    (D) Within the preceding 12 calendar months prior to the month of 
the flight, the pilot must have completed a training program that is 
approved under part 142 of this chapter. The approved training program 
must have required and the pilot must have performed, at least 6 
takeoffs and 6 landings to a full stop as the sole manipulator of the 
controls in a flight simulator that is representative of a turbine-
powered airplane that requires more than one pilot crewmember. The 
flight simulator's visual system must have been adjusted to represent 
the period beginning 1 hour after sunset and ending 1 hour before 
sunrise.

PART 91--GENERAL OPERATING AND FLIGHT RULES

    5. The authority citation for part 91 continues to read as follows:

    Authority: 49 U.S.C. 106(g), 1155, 40103, 40113, 40120, 44101, 
44111, 44701, 44709, 44711, 44712, 44715, 44716, 44717, 44722, 
46306, 46315, 46316, 46504, 46506-46507, 47122, 47508, 47528-47531, 
articles 12 and 29 of the Convention on International Civil Aviation 
(61 stat. 1180).

    6. Amend Sec. 91.415 by revising paragraphs (a) and (c) as follows:

Subpart E--Maintenance, Preventive Maintenance, and Alterations


Sec. 91.415  Changes to aircraft inspection programs.

    (a) Whenever the Administrator finds that revisions to an approved 
aircraft inspection program under Sec. 91.409(f)(4) or Sec. 91.1109 are 
necessary for the continued adequacy of the program, the owner or 
operator shall, after notification by the Administrator, make any 
changes in the program found to be necessary by the Administrator.
* * * * *
    (c) The petition must be filed with the Director, Flight Standards 
Service within 30 days after the certificate holder or fractional 
ownership program manager receives the notice.
* * * * *

Subpart F--Large and Turbine-Powered Multiengine Airplanes and 
Fractional Ownership Program Aircraft

    7. Amend Sec. 91.501 by revising paragraph (a), republishing the 
introductory text of paragraph (b) and adding paragraph (b)(10) to read 
as follows:


Sec. 91.501  Applicability.

    (a) This subpart prescribes operating rules, in addition to those 
prescribed in other subparts of this part, governing the operation of 
large airplanes of U.S. registry, turbojet-powered multiengine civil 
airplanes of U.S. registry, and fractional ownership program aircraft 
of U.S. registry that are operating under subpart K of this part in 
operations not involving common carriage. The operating rules in this 
subpart do not apply to those aircraft when they are required to be 
operated under parts 121,

[[Page 37540]]

125, 129, 135, and 137 of this chapter. (Section 91.409 prescribes an 
inspection program for large and for turbine-powered (turbojet and 
turboprop) multiengine airplanes and turbine-powered rotorcraft of U.S. 
registry when they are operated under this part or part 129 or 137.)
    (b) Operations that may be conducted under the rules in this 
subpart instead of those in parts 121, 129, 135, and 137 of this 
chapter when common carriage is not involved, include--
* * * * *
    (10) Any operation identified in paragraphs (b)(1) through (b)(9) 
of this section when conducted--
    (i) By a fractional ownership program manager, or
    (ii) By a fractional owner in a fractional ownership program 
aircraft operated under subpart K of this part.
* * * * *
    8. Amend Sec. 91.509 by revising paragraphs (b) introductory text, 
(c), (d) and (e) and adding paragraph (f) to read as follows:


Sec. 91.509  Survival equipment for overwater operations.

* * * * *
    (b) Except as provided in paragraph (c) of this section, no person 
may take off an airplane for flight over water more than 30 minutes 
flying time or 100 nautical miles from the nearest shore unless it has 
on board the following survival equipment:
* * * * *
    (c) For a pressurized turbine-powered aircraft operating at an 
altitude greater than 25,000 feet, a person may elect not to comply 
with the equipment requirements in Sec. 91.509(b)(2) through (5) of 
this part provided that the flight does not proceed more than 30 
minutes or 100 nautical miles from the nearest shore, whichever is 
greater.
    (d) The required liferafts, life preservers, and signaling devices 
must be installed in conspicuously marked locations and easily 
accessible in the event of a ditching without appreciable time for 
preparatory procedures.
    (e) A survival kit, appropriately equipped for the route to be 
flown, must be attached to each required liferaft.
    (f) As used in this section, the term shore means that area of the 
land adjacent to the water which is above the high water mark and 
excludes land areas which are intermittently under water.
    9. Amend Sec. 91.519 by adding paragraph (d) as follows:


Sec. 91.519  Passenger briefing.

* * * * *
    (d) For operations under subpart K of this part, the passenger 
briefing requirements of Sec. 91.1035 apply.
    10. Add subpart K to part 91 of title 14 Code of Federal 
Regulations to read as follows:

Subpart K--Fractional Ownership Operations

Sec.
91.1001   Applicability.
91.1003   Management contract between owner and program manager.
91.1005   Owner's use of program aircraft.
91.1007   Advance notice of non-program aircraft substitution.
91.1009   Clarification of when owner is in operational control.
91.1011   Implications of owner being in operational control.
91.1013   Owner's understanding and acknowledgement of operational 
control responsibilities.
91.1014   Manager's responsibility for ensuring compliance.
91.1015   Management specifications.
91.1017   Amending program manager's management specifications.
91.1019   Conducting tests and inspections.
91.1021   Internal safety reporting.
91.1023   Program operating manual requirements.
91.1025   Program operating manual contents.
91.1027   Recordkeeping.
91.1029   Flight scheduling and locating requirements.
91.1031   Pilot in command or second in command: Designation 
required.
91.1033   Operating information required.
91.1035   Passenger awareness.
91.1037   Large transport category aircraft: Turbine engine powered; 
limitations; destination airports and alternate airports.
91.1039   IFR takeoff, approach and landing minimums.
91.1041   Aircraft proving tests.
91.1043   [Reserved].
91.1045   Additional equipment requirements.
91.1047   Drug and alcohol misuse program.
91.1049   Personnel.
91.1051   Pilot safety background check.
91.1053   Flight crew experience.
91.1055   Pilot operating limitations and pairing requirement.
91.1057   Flight, duty and rest time requirements.
91.1059   Flight time limitations and rest requirements: One or two 
pilot crews.
91.1061   Augmented flight crews.
91.1063   Testing and training: Applicability and terms used.
91.1065   Initial and recurrent pilot testing requirements.
91.1067   Initial and recurrent flight attendant crewmember testing 
requirements.
91.1069   Flight crew: Instrument proficiency check requirements.
91.1071   Crewmember: Tests and checks, grace provisions, training 
to accepted standards.
91.1073   Training program: General.
91.1075   Training program: Special rules.
91.1077   Training program and revision: Initial and final approval.
91.1079   Training program: Curriculum.
91.1081   Crewmember training requirements.
91.1083   Crewmember emergency training.
91.1085   Hazardous materials recognition training.
91.1087   Approval of aircraft simulators and other training 
devices.
91.1089   Qualifications: Check pilot (aircraft) and check pilot 
(simulator).
91.1091   Qualifications: Flight instructors (aircraft) and flight 
instructors (simulator).
91.1093   Initial and transition training and checking: Check pilot 
(aircraft), check pilot (simulator).
91.1095   Initial and transition training and checking: Flight 
instructors (aircraft), flight instructors (simulator).
91.1097   Pilot and flight attendant crewmember training programs.
91.1099   Crewmember initial and recurrent training requirements.
91.1101   Pilots: Initial, transition, and upgrade ground training.
91.1103   Pilots: Initial, transition, upgrade, and differences 
flight training.
91.1105   Flight attendants: Initial and transition ground training.
91.1107   Recurrent training.
91.1109   Aircraft maintenance: Inspection program.
91.1111   Maintenance training.
91.1113   Maintenance recordkeeping.
91.1115   Minimum equipment lists and letters of authorization.


Sec. 91.1001  Applicability.

    (a) This subpart prescribes rules, in addition to those prescribed 
in other subparts of this part, governing--
    (1) The operation of a fractional ownership program aircraft in a 
fractional ownership program; and
    (2) The operation by a fractional owner of a program aircraft 
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) A fractional ownership program or program means any system of 
aircraft exchange involving two or more airworthy aircraft that 
consists of all of the following elements:
    (i) The provision for fractional ownership program management 
services by a single fractional ownership program manager on behalf of 
the fractional owners;
    (ii) One or more fractional owners per program aircraft, with at 
least one program aircraft having more than one owner;
    (iii) Possession of at least a minimum fractional ownership 
interest in one or more program aircraft by each fractional owner;

[[Page 37541]]

    (iv) A dry-lease aircraft exchange arrangement among all of the 
fractional owners; and
    (v) Multi-year program agreements covering the fractional 
ownership, fractional ownership program management services, and dry-
lease aircraft exchange aspects of the program.
    (2) A dry-lease aircraft exchange means an arrangement, documented 
by the written program agreements, under which the program aircraft are 
available, on an as needed basis without crew, to each fractional 
owner.
    (3) A fractional ownership interest means the ownership of an 
interest or holding of a multi-year leasehold interest and/or a multi-
year leasehold interest that is convertible into an ownership interest 
in a program aircraft.
    (4) A minimum fractional ownership interest means--
    (i) A fractional ownership interest equal to, or greater than, one-
sixteenth (\1/16\) of at least one subsonic, fixed-wing or powered-lift 
program aircraft; or
    (ii) A fractional ownership interest equal to, or greater than, 
one-thirty-second (\1/32\) of at least one rotorcraft program aircraft.
    (5) A fractional owner or owner means an individual or entity which 
possesses a minimum fractional ownership interest in a program aircraft 
and which has entered into the applicable program agreements; provided, 
however, that in the case of the flight operations described in 
paragraph (b)(6)(ii) of this section, and solely for purposes of 
requirements pertaining to those flight operations, the fractional 
owner operating the aircraft shall be deemed to be a fractional owner 
in the program managed by the affiliate.
    (6) A fractional ownership program aircraft or program aircraft 
means:
    (i) An aircraft in which a fractional owner has a minimal 
fractional ownership interest and which has been included in the dry-
lease aircraft exchange pursuant to the program agreements, or
    (ii) In the case of a fractional owner from one program operating 
an aircraft in a different fractional ownership program managed by an 
affiliate of the operating owner's program manager, the aircraft being 
operated by the fractional owner, so long as the aircraft is:
    (A) Included in the fractional ownership program managed by the 
affiliate of the operating owner's program manager, 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.
    (7) Fractional ownership program management services or program 
management services mean administrative and aviation support services 
furnished in accordance with the applicable requirements of this 
subpart or offered by the program manager to the fractional owners, 
including, at a minimum, the establishment and implementation of 
program safety guidelines, and the coordination of the following:
    (i) The scheduling of the program aircraft and crews;
    (ii) Program aircraft maintenance;
    (iii) Crew training for crews employed, furnished or contracted by 
the program manager or the fractional owner;
    (iv) Satisfaction of recordkeeping requirements; and
    (v) Development and use of a program operations manual and 
maintenance program manual.
    (8) A fractional ownership program manager or program manager means 
the entity that offers fractional ownership program management services 
to fractional owners, and is designated in the multi-year program 
agreements referenced in paragraph (b)(1)(v) of this section to fulfill 
the requirements of this chapter applicable to the manager of the 
program containing the aircraft being flown. When a fractional owner is 
operating an aircraft in a fractional ownership program managed by an 
affiliate of the owner's program manager, the references in this 
subpart to the flight-related responsibilities of the program manager 
apply, with respect to that particular flight, to the affiliate of the 
owner's program manager rather than to the owner's program manager.
    (9) Affiliate of a program manager means a manager which, directly, 
or indirectly, through one or more intermediaries, controls, is 
controlled by, or is under common control with, another program 
manager. The holding of at least forty percent (40%) of the equity and 
forty percent (40%) of the voting power of an entity shall be presumed 
to constitute control for purposes of determining an affiliation under 
this subpart.


Sec. 91.1003  Management contract between owner and program manager.

    Each owner shall 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, or have a designee of 
the owner inspect, the records of the program manager pertaining to the 
operational safety of the program, including all program log books and 
maintenance records.
    (c) Provides the owner the reasonable right to audit, or have a 
designee of the owner audit, the operational safety aspects of the 
program, including all program log books and maintenance records.
    (d) Designates the program manager as the owner's agent solely 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 solely in its capacity as the agent of the owner for 
such service.


Sec. 91.1005  Owner's use of program aircraft.

    (a) Except as provided in paragraph (b) of this section, no owner 
may engage in the carriage of persons or property as a common carrier 
for compensation or hire using program aircraft unless the owner 
possesses an appropriate FAA air carrier or operating certificate and 
appropriate economic authority from the Department of Transportation, 
and such operations are conducted under part 121 or 135 of this Title, 
as applicable.
    (b) Notwithstanding any other requirement of this subpart, an owner 
may receive compensation as is permitted by Sec. 91.321 or Sec. 91.501 
for the owner's operation of a program aircraft.
    (c) 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 shall not exceed the total hours 
associated with the fractional owner's share of ownership.


Sec. 91.1007  Advance notice of non-program aircraft substitution.

    The program manager shall make an effort to notify a fractional 
owner prior to the flight when a non-program aircraft is substituted 
for a program aircraft for the use of the fractional owner. 
Notification shall include the name of the person providing the non-
program aircraft.


Sec. 91.1009  Clarification of when owner is in operational control.

    (a) The 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 
Secs. 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.

[[Page 37542]]

    (b) The 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, ferrying, maintenance, or 
crew training, and no passengers or property designated by such owner 
are being carried; or
    (2) The aircraft being used for the flight is being operated under 
part 121 or 135 of this chapter.


Sec. 91.1011  Implications of owner being in operational control.

    Each owner in operational control of a program flight shall be 
responsible for complying with all applicable requirements of this 
chapter, including those related to airworthiness and operations in 
connection with the flight. Each owner may delegate some or all of the 
performance of the tasks associated with carrying out this 
responsibility to the program manager, and may rely on the program 
manager for aviation expertise and program management services. When 
the owner delegates performance of tasks to the program manager or 
relies on the program manager's expertise, the owner and the program 
manager shall be responsible to the FAA for compliance.


Sec. 91.1013  Owner's understanding and acknowledgement of operational 
control responsibilities.

    (a) Upon the signing of an initial program management services 
contract, or a renewal or extension of a program management services 
contract, the program manager shall brief the owner on the owner's 
operational control responsibilities, and the owner shall review and 
sign an acknowledgement of the fractional owner's operational control 
responsibilities. The acknowledgement shall be included with the 
program management services contract. The acknowledgement shall state 
that the owner is in operational control of the aircraft used and is 
aware of that person's operational control responsibilities in the 
program when the operation of a program aircraft for the owner will be 
conducted as a non-commercial operation under part 91.
    (1) The acknowledgement also shall state that:
    (i) The owner has responsibility for compliance with the management 
specifications and all applicable regulations;
    (ii) The owner may be exposed to enforcement actions for any 
noncompliance; and
    (iii) The owner may be exposed to significant liability risk in the 
event of a flight-related occurrence that causes personal injury or 
property damage.
    (2) The owner's signature on the acknowledgement will serve as the 
owner's affirmation that the owner has read, understands, and accepts 
the operational control responsibilities described in the 
acknowledgement.
    (b) Each program manager shall ensure that the owner and owner's 
representatives have access to the acknowledgements for such owner's 
program aircraft. Each program manager shall ensure that the FAA has 
access to the acknowledgements for all program aircraft.


Sec. 91.1014  Manager's responsibility for ensuring compliance.

    The fractional ownership program manager shall ensure that its 
program management services are sufficient to ensure owner compliance 
with all applicable sections of this part in program operations where a 
fractional owner has operational control.


Sec. 91.1015  Management specifications.

    (a) Each person conducting operations under this subpart or 
furnishing fractional ownership program management services to 
fractional owners shall do so in accordance with management 
specifications issued by the Administrator to the fractional ownership 
program manager under this subpart. Management specifications shall 
include:
    (1) The current list of all fractional owners and types of 
aircraft, registration markings and serial numbers;
    (2) The authorizations, limitations, and certain procedures under 
which these operations are to be conducted,
    (3) Certain other procedures under which each class and size of 
aircraft is to be operated;
    (4) Authorization for an inspection program approved under 
Sec. 91.1109, including the type of aircraft, the registration markings 
and serial numbers of each aircraft to be operated under the program. 
No person may conduct any program operation using any aircraft not 
listed.
    (5) Time limitations, or standards for determining time 
limitations, for overhauls, inspections, and checks for airframes, 
engines, propellers, rotors, appliances, and emergency equipment of 
aircraft.
    (6) The specific location of the program manager's principal base 
of operations and, if different, the address that shall serve as the 
primary point of contact for correspondence between the FAA and the 
program manager and the name and mailing address of the program 
manager's agent for service;
    (7) Other business names the program manager may use;
    (8) Authorization for the method of controlling weight and balance 
of aircraft;
    (9) Any authorized deviation and exemption granted from any 
requirement of this chapter; and
    (10) Any other information the Administrator determines is 
necessary.
    (b) The program manager may keep the current list of all fractional 
owners required by paragraph (a)(1) of this section, at its principal 
base of operation or other location approved by the Administrator and 
referenced in its management specifications. Each program manager shall 
make this list of owners available for inspection by the Administrator.
    (c) Management specifications issued under this subpart are 
effective unless--
    (1) The management specifications are amended as provided in 
Sec. 91.1017 of this part; or
    (2) The Administrator suspends or revokes the management 
specifications, in which case, the provisions of Sec. 13.19 shall 
apply.
    (d) At least 30 days before it proposes to establish or change the 
location of its principal base of operations, its main operations base, 
or its main maintenance base, a program manager must provide written 
notification to the Flight Standards District Office which issued the 
program manager's management specifications.
    (e) Each program manager shall maintain a complete and separate set 
of its management specifications at its principal base of operations, 
or at a place approved by the Administrator, and shall make its 
management specifications available for inspection by the Administrator 
and the fractional owner(s) to whom the program manager furnishes its 
services for review and audit.
    (f) Each program manager shall insert pertinent excerpts of its 
management specifications, or references thereto, in its program manual 
and shall--
    (1) Clearly identify each such excerpt as a part of its management 
specifications; and
    (2) State that compliance with each management specifications 
requirement is mandatory.
    (g) Each program manager shall keep each of its employees and other 
persons who perform duties material to its operations informed of the 
provisions of its management specifications that apply to that 
employee's or person's duties and responsibilities.


Sec. 91.1017  Amending program manager's management specifications.

    (a) The Administrator may amend any management specifications 
issued under this subpart if--

[[Page 37543]]

    (1) The Administrator determines that safety and the public 
interest require the amendment of any management specifications; or
    (2) The program manager applies for the amendment of any management 
specifications, and the Administrator determines that safety and the 
public interest allows the amendment.
    (b) Except as provided in paragraph (e) of this section, when the 
Administrator initiates an amendment of a program manager's management 
specifications, the following procedure applies:
    (1) The Flight Standards District Office that issued the program 
manager's management specifications shall notify the program manager in 
writing of the proposed amendment.
    (2) The Flight Standards District Office which issued the program 
manager's management specifications shall set a reasonable period (but 
not less than 7 days) within which the program manager may submit 
written information, views, and arguments on the amendment.
    (3) After considering all material presented, the Flight Standards 
District Office that issued the program manager's management 
specifications shall notify the program manager of--
    (i) The adoption of the proposed amendment,
    (ii) The partial adoption of the proposed amendment, or
    (iii) The withdrawal of the proposed amendment.
    (4) If the Flight Standards District Office which issued the 
program manager's management specifications issues an amendment of the 
management specifications, it becomes effective not less than 30 days 
after the program manager receives notice of it unless--
    (i) The Flight Standards District Office which issued the program 
manager's management specifications finds under paragraph (e) of this 
section that there is an emergency requiring immediate action with 
respect to safety; or
    (ii) The program manager petitions for reconsideration of the 
amendment under paragraph (d) of this section.
    (c) When the program manager applies for an amendment to its 
management specifications, the following procedure applies:
    (1) The program manager must file an application to amend its 
management specifications--
    (i) At least 90 days before the date proposed by the applicant for 
the amendment to become effective, unless a shorter time is approved, 
in cases of mergers; acquisitions of operational assets that require an 
additional showing of safety (e.g., proving tests); resumption of 
operations following a suspension of operations as a result of 
bankruptcy actions.
    (ii) At least 15 days before the date proposed by the applicant for 
the amendment to become effective in all other cases.
    (2) The application must be submitted to the Flight Standards 
District Office that issued the program manager's management 
specifications in a form and manner prescribed by the Administrator.
    (3) After considering all material presented, the Flight Standards 
District Office that issued the program manager's management 
specifications shall notify the program manager of--
    (i) The adoption of the applied for amendment;
    (ii) The partial adoption of the applied for amendment; or
    (iii) The denial of the applied for amendment. The program manager 
may petition for reconsideration of a denial under paragraph (d) of 
this section.
    (4) If the Flight Standards District Office which issued the 
program manager's management specifications approves the amendment, 
following coordination with the program manager regarding its 
implementation, the amendment is effective on the date the 
Administrator approves it.
    (d) When a program manager seeks reconsideration of a decision of 
the Flight Standards District Office that issued the program manager's 
management specifications concerning the amendment of management 
specifications, the following procedure applies:
    (1) The program manager must petition for reconsideration of that 
decision within 30 days of the date that the program manager receives a 
notice of denial of the amendment of its management specifications, or 
of the date it receives notice of an FAA-initiated amendment of its 
management specifications, whichever circumstance applies.
    (2) The program manager must address its petition to the Director, 
Flight Standards Service.
    (3) A petition for reconsideration, if filed within the 30-day 
period, suspends the effectiveness of any amendment issued by the 
Flight Standards District Office which issued the program manager's 
management specifications unless that District Office has found, under 
paragraph (e) of this section, that an emergency exists requiring 
immediate action with respect to safety.
    (4) If a petition for reconsideration is not filed within 30 days, 
the procedures of paragraph (c) of this section apply.
    (e) If the Flight Standards District Office which issued the 
program manager's management specifications finds that an emergency 
exists requiring immediate action with respect to safety that makes the 
procedures set out in this section impracticable or contrary to the 
public interest--
    (1) The District Office amends the management specifications and 
makes the amendment effective on the day the program manager receives 
notice of it; and
    (2) In the notice to the program manager, the District Office shall 
articulate the reasons for its finding that an emergency exists 
requiring immediate action with respect to safety or that makes it 
impracticable or contrary to the public interest to stay the 
effectiveness of the amendment.


Sec. 91.1019  Conducting tests and inspections.

    (a) At any time or place, the Administrator may conduct an 
inspection or test, other than enroute inspections, to determine 
whether a program manager under this subpart is complying with title 49 
of the United States Code, applicable regulations, and the program 
manager's management specifications.
    (b) The program manager must--
    (1) Make available to the Administrator at the program manager's 
principal base of operations the program manager's management 
specifications; and
    (2) Allow the Administrator to make any test or inspection, other 
than enroute inspections, to determine compliance respecting any matter 
stated in paragraph (a) of this section.
    (c) Each employee of, or person used by, the program manager who is 
responsible for maintaining the program manager's records must make 
those records available to the Administrator.
    (d) The Administrator may determine a program manager's continued 
eligibility to hold its management specifications on any grounds listed 
in paragraph (a) of this section, or any other appropriate grounds.
    (e) Failure by any program manager to make available to the 
Administrator upon request, the management specifications, or any 
required record, document, or report is grounds for suspension of all 
or any part of the program manager's management specifications.


Sec. 91.1021  Internal safety reporting.

    (a) Each program manager shall establish an internal anonymous 
safety reporting procedure that fosters an environment of safety 
without any potential for retribution.

[[Page 37544]]

    (b) Each program manager shall establish procedures to respond to 
an aviation incident/accident.


Sec. 91.1023  Program operating manual requirements.

    (a) Each program manager shall prepare and keep current a program 
operating manual setting forth procedures and policies acceptable to 
the Administrator. This manual shall be used by each program manager's 
management, flight, ground, and maintenance personnel in conducting its 
operations. However, the Administrator may authorize a deviation from 
this paragraph if the Administrator finds that, because of the limited 
size of the operation, part of the manual is not necessary for guidance 
of management, flight, ground, or maintenance personnel.
    (b) Each program manager shall maintain at least one copy of the 
manual at its principal base of operations.
    (c) No manual may be contrary to any applicable U.S. regulations, 
foreign regulations applicable to the program operations in foreign 
countries, or the program manager's management specifications.
    (d) A copy of the manual, or appropriate portions of the manual 
(and changes and additions) shall be made available to maintenance and 
ground operations personnel by the program manager and furnished to--
    (1) Its flight crewmembers; and
    (2) Representatives of the Administrator assigned to the program 
manager.
    (e) Each employee of the program manager to whom a manual or 
appropriate portions of it are furnished under paragraph (d)(1) of this 
section shall keep it up to date with the changes and additions 
furnished to them.
    (f) Except as provided in paragraph (h) of this section, the 
appropriate parts of the manual shall be carried on each aircraft when 
away from the principal operations base. The appropriate parts must be 
available for use by ground or flight personnel.
    (g) For the purpose of complying with paragraph (d) of this 
section, a program manager may furnish the persons listed therein with 
all or part of its manual in printed form or other form, acceptable to 
the Administrator, that is retrievable in the English language. If the 
program manager furnishes all or part of the manual in other than 
printed form, it shall ensure there is a compatible reading device 
available to those persons that provides a legible image of the 
maintenance information and instructions, or a system that is able to 
retrieve the maintenance information and instructions in the English 
language.
    (h) If aircraft inspections or maintenance are conducted at 
specified stations where the approved inspection program operations 
manual is available, the program manager is not required to ensure that 
the program operating manual is carried aboard the aircraft enroute to 
those stations.


Sec. 91.1025  Program operating manual contents.

    Each program operating manual must have the date of the last 
revision on each revised page. Unless otherwise authorized by the 
Administrator, the manual shall include the following:
    (a) Procedures for ensuring compliance with aircraft weight and 
balance limitations;
    (b) Copies of the program manager's management specifications or 
appropriate extracted information, including area of operations 
authorized, category and class of aircraft authorized, crew 
complements, and types of operations authorized;
    (c) Procedures for complying with accident notification 
requirements;
    (d) Procedures for ensuring that the pilot in command knows that 
required airworthiness inspections have been made and that the aircraft 
has been approved for return to service in compliance with applicable 
maintenance requirements;
    (e) Procedures for reporting and recording mechanical 
irregularities that come to the attention of the pilot in command 
before, during, and after completion of a flight;
    (f) Procedures to be followed by the pilot in command for 
determining that mechanical irregularities or defects reported for 
previous flights have been corrected or that correction of certain 
mechanical irregularities or defects have been deferred;
    (g) Procedures to be followed by the pilot in command to obtain 
maintenance, preventive maintenance, and servicing of the aircraft at a 
place where previous arrangements have not been made by the program 
manager or owner, when the pilot is authorized to so act for the 
operator;
    (h) Procedures under Sec. 91.213 for the release of, and 
continuation of flight if any item of equipment required for the 
particular type of operation becomes inoperative or unserviceable en 
route;
    (i) Procedures for refueling aircraft, eliminating fuel 
contamination, protecting from fire (including electrostatic 
protection), and supervising and protecting passengers during 
refueling;
    (j) Procedures to be followed by the pilot in command in the 
briefing under Sec. 91.1035.
    (k) Procedures for ensuring compliance with emergency procedures, 
including a list of the functions assigned each category of required 
crewmembers in connection with an emergency and emergency evacuation 
duties;
    (l) The approved aircraft inspection program, when applicable;
    (m) Procedures for the evacuation of persons who may need the 
assistance of another person to move expeditiously to an exit if an 
emergency occurs;
    (n) Procedures for performance planning that take into account take 
off, landing and enroute conditions;
    (o) At the program manager's election for reduced runway operating 
length requirements under Sec. 91.1037, an approved Destination Airport 
Analysis establishing procedures for establishing runway safety margins 
at destination airports beyond those otherwise permitted by 
Sec. 91.1037, taking into account the following factors as supported by 
published aircraft performance data supplied by the aircraft 
manufacturer for the appropriate runway conditions--
    (1) Pilot qualifications and experience;
    (2) Aircraft performance data to include normal, abnormal and 
emergency procedures as supplied by the aircraft manufacturer;
    (3) Airport facilities and topography;
    (4) Runway conditions (including contamination);
    (5) Airport or area weather reporting;
    (6) Appropriate additional runway safety margins, if required; and
    (7) Other criteria that affect aircraft performance.
    (p) A suitable system (which may include a coded or electronic 
system) that provides for preservation and retrieval of maintenance 
recordkeeping information required by Sec. 91.1113 in a manner 
acceptable to the Administrator that provides--
    (1) A description (or reference to date acceptable to the 
Administrator) of the work performed:
    (2) The name of the person performing the work if the work is 
performed by a person outside the organization of the program manager; 
and
    (3) The name or other positive identification of the individual 
approving the work.
    (q) Flight locating and scheduling procedures; and
    (r) Other procedures and policy instructions regarding program 
operations that are issued by the program manager or required by the 
Administrator.

[[Page 37545]]

Sec. 91.1027  Recordkeeping.

    (a) Each program manager shall keep at its principal business 
office or at other places approved by the Administrator, and shall make 
available for inspection by the Administrator the following:
    (1) The program manager's management specifications;
    (2) A current list of the aircraft used or available for use in 
operations under this subpart, the operations for which each is 
equipped (e.g., MNPS, RNP5/10, RVSM, etc.), and the owners of each 
aircraft;
    (3) An individual record of each pilot used in operations under 
this subpart, including the following information:
    (i) The full name of the pilot.
    (ii) The pilot certificate (by type and number) and ratings that 
the pilot holds.
    (iii) The pilot's aeronautical experience in sufficient detail to 
determine the pilot's qualifications to pilot aircraft in operations 
under this subpart.
    (iv) The pilot's current duties and the date of the pilot's 
assignment to those duties.
    (v) The effective date and class of the medical certificate that 
the pilot holds.
    (vi) The date and result of each of the initial and recurrent 
competency tests and proficiency checks required by this subpart and 
the type of aircraft flown during that test or check.
    (vii) The pilot's flight time in sufficient detail to determine 
compliance with the flight time limitations of this subpart.
    (viii) The pilot's check pilot authorization, if any.
    (ix) Any action taken concerning the pilot's release from 
employment for physical or professional disqualification.
    (x) The date of the completion of the initial phase and each 
recurrent phase of the training required by this subpart; and
    (4) An individual record for each flight attendant used in 
operations under this subpart, including the following information:
    (i) The full name of the flight attendant, and
    (ii) The date and result of training required by Sec. 91.1063, as 
applicable.
    (b) Each program manager must keep each record required by 
paragraph (a)(2) of this section for at least 6 months, and must keep 
each record required by paragraphs (a)(3) and (a)(4) of this section 
for at least 12 months. When an employee is no longer employed or 
affiliated with the program manager or fractional owner, each record 
required by paragraphs (a)(3) and (a)(4) of this section shall be 
retained for at least 12 months.
    (c) Each program manager shall be responsible for the preparation 
and accuracy of a load manifest in duplicate containing information 
concerning the loading of the aircraft. The manifest shall be prepared 
before each takeoff and shall include--
    (1) The number of passengers;
    (2) The total weight of the loaded aircraft;
    (3) The maximum allowable takeoff weight for that flight;
    (4) The center of gravity limits;
    (5) The center of gravity of the loaded aircraft, except that the 
actual center of gravity need not be computed if the aircraft is loaded 
according to a loading schedule or other approved method that ensures 
that the center of gravity of the loaded aircraft is within approved 
limits. In those cases, an entry shall be made on the manifest 
indicating that the center of gravity is within limits according to a 
loading schedule or other approved method;
    (6) The registration number of the aircraft or flight number;
    (7) The origin and destination; and
    (8) Identification of crewmembers and their crew position 
assignments.
    (d) The pilot in command of the aircraft for which a load manifest 
must be prepared shall carry a copy of the completed load manifest in 
the aircraft to its destination. The program manager shall keep copies 
of completed load manifest for at least 30 days at its principal 
operations base, or at another location used by it and approved by the 
Administrator.
    (e) Each program manager shall be responsible for providing a 
written document that states the name of the entity having operational 
control on that flight and the part of this chapter under which the 
flight is operated. The pilot in command of the aircraft shall carry a 
copy of the document in the aircraft to its destination. The program 
manager shall keep a copy of the document for at least 30 days at its 
principal operations base, or at another location used by it and 
approved by the Administrator.
    (f) Records may be kept either in paper or other form acceptable to 
the Administrator.
    (g) Program managers that are also certificated to operate under 
part 121 or 135 may satisfy the recordkeeping requirements of this 
section and of Sec. 91.1113 with records maintained to fulfil 
equivalent obligations under part 121 or 135.


Sec. 91.1029  Flight scheduling and locating requirements.

    (a) Each program manager shall establish and use a system to 
schedule and release program aircraft.
    (b) Except as provided in paragraph (d) of this section, each 
program manager shall have procedures established for locating each 
flight, for which a flight plan is not filed, that--
    (1) Provide the program manager with at least the information 
required to be included in a VFR flight plan;
    (2) Provide for timely notification of an FAA facility or search 
and rescue facility, if an aircraft is overdue or missing; and
    (3) Provide the program manager with the location, date, and 
estimated time for reestablishing radio or telephone communications, if 
the flight will operate in an area where communications cannot be 
maintained.
    (c) Flight locating information shall be retained at the program 
manager's principal base of operations, or at other places designated 
by the program manager in the flight locating procedures, until the 
completion of the flight.
    (d) The flight locating requirements of paragraph (b) of this 
section shall not apply to a flight for which a FAA flight plan has 
been filed and the flight plan is canceled within 25 nautical miles of 
the destination airport.


Sec. 91.1031  Pilot in command or second in command: Designation 
required.

    (a) Each program manager shall designate a--
    (1) Pilot in command for each program flight; and
    (2) Second in command for each program flight requiring two pilots.
    (b) The pilot in command, as designated by the program manager, 
shall remain the pilot in command at all times during that flight.


Sec. 91.1033  Operating information required.

    (a) Each program manager shall, for all program operations, provide 
the following materials, in current and appropriate form, accessible to 
the pilot at the pilot station, and the pilot shall use them--
    (1) A cockpit checklist;
    (2) For multiengine aircraft or for aircraft with retractable 
landing gear, an emergency cockpit checklist containing the procedures 
required by paragraph (c) of this section, as appropriate;
    (3) At least one set of pertinent aeronautical charts; and
    (4) For IFR operations, at least one set of pertinent navigational 
enroute, terminal area, and approach and letdown charts.
    (b) Each cockpit checklist required by paragraph (a)(1) of this 
section shall contain the following procedures:
    (1) Before starting engines;
    (2) Before takeoff;

[[Page 37546]]

    (3) Cruise;
    (4) Before landing;
    (5) After landing; and
    (6) Stopping engines.
    (c) Each emergency cockpit checklist required by paragraph (a)(2) 
of this section must contain the following procedures, as appropriate:
    (1) Emergency operation of fuel, hydraulic, electrical, and 
mechanical systems.
    (2) Emergency operation of instruments and controls.
    (3) Engine inoperative procedures.
    (4) Any other emergency procedures necessary for safety.


Sec. 91.1035  Passenger awareness.

    (a) Prior to each takeoff the pilot in command of an aircraft 
carrying passengers on a program flight, shall ensure that all 
passengers have been orally briefed on--
    (1) Smoking: Each passenger shall be briefed on when, where, and 
under what conditions smoking is prohibited. This briefing shall 
include a statement, as appropriate, that the regulations require 
passenger compliance with lighted passenger information signs and no 
smoking placards, prohibit smoking in lavatories, and require 
compliance with crewmember instructions with regard to these items;
    (2) Use of safety belts, shoulder harnesses, and child restraint 
systems: Each passenger shall be briefed on when, where and under what 
conditions it is necessary to have his or her safety belt and, if 
installed, his or her shoulder harness fastened about him or her, and 
if a child is being transported, the appropriate use of child restraint 
systems, if available. This briefing shall include a statement, as 
appropriate, that the regulations require passenger compliance with the 
lighted passenger information sign and/or crewmember instructions with 
regard to these items;
    (3) The placement of seat backs in an upright position before 
takeoff and landing;
    (4) Location and means for opening the passenger entry door and 
emergency exits;
    (5) Location of survival equipment;
    (6) Ditching procedures and the use of flotation equipment required 
under Sec. 91.509 for a flight over water;
    (7) The normal and emergency use of oxygen installed in the 
aircraft; and
    (8) Location and operation of fire extinguishers.
    (b) Prior to each takeoff, the pilot in command of an aircraft 
carrying passengers on a program flight shall ensure that each person 
who may need the assistance of another person to move expeditiously to 
an exit if an emergency occurs and that person's attendant, if any, has 
received a briefing as to the procedures to be followed if an 
evacuation occurs. This paragraph does not apply to a person who has 
been given a briefing before a previous leg of a flight in the same 
aircraft.
    (c) Prior to each takeoff, the pilot in command shall advise the 
passengers of the name of the entity in operational control of the 
flight and whether the flight is conducted as a program flight or a 
commercial operation under part 121 or 135 of the regulations.
    (d) The oral briefing required by paragraphs (a), (b), and (c) of 
this section shall be given by the pilot in command or another 
crewmember.
    (e) The oral briefing required by paragraph (a) of this section may 
be delivered by means of an approved recording playback device that is 
audible to each passenger under normal noise levels.
    (f) The oral briefing required by paragraph (a) of this section 
shall be supplemented by printed cards that must be carried in the 
aircraft in locations convenient for the use of each passenger. The 
cards shall--
    (1) Be appropriate for the aircraft on which they are to be used;
    (2) Contain a diagram of, and method of operating, the emergency 
exits; and
    (3) Contain other instructions necessary for the use of emergency 
equipment on board the aircraft.
    (g) The briefing required by paragraphs (a), (b) and (c) of this 
section do not apply if passengers have been briefed before a previous 
leg of a flight in the same aircraft.


Sec. 91.1037  Large transport category airplanes: Turbine engine 
powered; Limitations; Destination and alternate airports.

    (a) No program manager or any other person may permit a turbine 
engine powered large transport category airplane on a program flight to 
take off at a weight at which (allowing for normal consumption of fuel 
and oil in flight to the destination or alternate airport) the weight 
of the airplane on arrival would exceed the landing weight in the 
Airplane Flight Manual for the elevation of the destination or 
alternate airport and the ambient temperature anticipated at the time 
of landing.
    (b) Except as provided in paragraph (c) of this section, no program 
manager or any other person may permit a turbine engine powered large 
transport category airplane on a program flight to take off unless, its 
weight on arrival, allowing for normal consumption of fuel and oil in 
flight (in accordance with the landing distance in the Airplane Flight 
Manual for the elevation of the destination airport and the wind 
conditions anticipated there at the time of landing), would allow a 
full stop landing at the intended destination airport within 85 percent 
of the effective length of each runway described below from a point 50 
feet above the intersection of the obstruction clearance plane and the 
runway. For the purpose of determining the allowable landing weight at 
the destination airport, the following is assumed:
    (1) The airplane is landed on the most favorable runway and in the 
most favorable direction, in still air.
    (2) The airplane is landed on the most suitable runway considering 
the probable wind velocity and direction and the ground handling 
characteristics of that airplane, and considering other conditions such 
as landing aids and terrain.
    (c) A program manager or other person flying a turbine engine 
powered large transport category airplane on a program flight may 
permit that airplane to take off at a weight in excess of that allowed 
by the runway margin in paragraph (b) of this section if such operation 
is permitted by an approved Destination Airport Analysis in that 
person's program operating manual and an alternate airport meeting the 
criteria of paragraph (d) of this section is selected.
    (d) A program manager or other person may select an airport as an 
alternate airport for a turbine engine powered large transport category 
airplane if (based on the assumptions in paragraph (b) of this section) 
that airplane, at the weight anticipated at the time of arrival, can be 
brought to a full stop landing within 85 percent of the effective 
length of the runway from a point 50 feet above the intersection of the 
obstruction clearance plane and the runway.
    (e) Unless, based on a showing of actual operating landing 
techniques on wet runways, a shorter landing distance (but never less 
than that required by paragraph (b) of this section) has been approved 
for a specific type and model airplane and included in the Airplane 
Flight Manual, no person may take off a turbojet airplane when the 
appropriate weather reports or forecasts, or any combination of them, 
indicate that the runways at the destination or alternate airport may 
be wet or slippery at the estimated time of arrival unless the 
effective runway length at the destination airport is at least 115 
percent of the runway length required under paragraph (b) of this 
section.

[[Page 37547]]

Sec. 91.1039  IFR takeoff, approach and landing minimums.

    (a) No pilot on a program aircraft operating a program flight may 
begin an instrument approach procedure to an airport unless--
    (1) Either that airport or the alternate airport has a weather 
reporting facility operated by the U.S. National Weather Service, a 
source approved by the U.S. National Weather Service, or a source 
approved by the Administrator; and
    (2) The latest weather report issued by the weather reporting 
facility includes a current local altimeter setting for the destination 
airport. If no local altimeter setting is available at the destination 
airport, the pilot may use the current alternate altimeter setting 
provided by the facility designated on the approach chart for the 
destination airport.
    (b) For flight planning purposes, if the destination airport does 
not have a weather reporting facility described in paragraph (a)(1) of 
this section, the pilot must designate as an alternate an airport that 
has a weather reporting facility meeting that criteria.
    (c) The MDA or DH and visibility landing minimums prescribed in 
part 97 of this chapter or in the program manager's management 
specifications are increased by 100 feet and \1/2\ mile respectively, 
but not to exceed the ceiling and visibility minimums for that airport 
when used as an alternate airport, for each pilot in command of a 
turbine-powered aircraft who has not served at least 100 hours as pilot 
in command in that type of aircraft.
    (d) No person may take off an aircraft under IFR from an airport 
where weather conditions are at or above takeoff minimums but are below 
authorized IFR landing minimums unless there is an alternate airport 
within one (1) hour's flying time (at normal cruising speed, in still 
air) of the airport of departure.
    (e) Each pilot making an IFR takeoff or approach and landing at an 
airport shall comply with applicable instrument approach procedures and 
take off and landing weather minimums prescribed by the authority 
having jurisdiction over the airport. In addition, no pilot may, at 
that airport take off when the visibility is less than 600 feet in the 
latest weather report issued by a weather reporting facility operated 
by the U.S. National Weather Service, a source approved by the U.S. 
National Weather Service, or a source approved by the Administrator, 
or, in the absence of such a weather reporting facility, as determined 
by the pilot in command, and the pilot in command shall have ensured 
that this visibility is maintainable for the entire length of the 
runway.


Sec. 91.1041  Aircraft proving tests.

    (a) No program manager may permit the operation of an aircraft for 
which two pilots are required by the type certification requirements of 
this chapter for operations under VFR, if it has not previously proved 
such an aircraft in operations under this part in at least 25 hours of 
proving tests acceptable to the Administrator including--
    (1) Five hours of night time, if night flights are to be 
authorized;
    (2) Five instrument approach procedures under simulated or actual 
conditions, if IFR flights are to be authorized; and
    (3) Entry into a representative number of enroute airports as 
determined by the Administrator.
    (b) No program manager may permit the operation of a turbojet 
airplane if it has not previously proved the same or another turbojet 
airplane in operations under this part in at least 25 hours of proving 
tests acceptable to the Administrator including--
    (1) Five hours of night time, if night flights are to be 
authorized;
    (2) Five instrument approach procedures under simulated or actual 
conditions, if IFR flights are to be authorized; and
    (3) Entry into a representative number of enroute airports as 
determined by the Administrator.
    (c) No program manager may carry passengers in an aircraft during 
proving tests, except those needed to make the tests and those 
designated by the Administrator to observe the tests. However, pilot 
flight training may be conducted during the proving tests.
    (d) The Administrator may authorize deviations from this section if 
the Administrator finds that special circumstances make full compliance 
with this section unnecessary.


Sec. 91.1043  [Reserved]


Sec. 91.1045  Additional equipment requirements.

    No person may operate a program aircraft on a program flight unless 
the aircraft is equipped with the following--
    (a) A cockpit voice recorder conforming to Sec. 121.359 or 
Sec. 135.151 of this chapter as applicable to the aircraft specified 
therein.
    (b) A flight recorder conforming to Sec. 121.343, Sec. 121.344 or 
Sec. 135.152 of this chapter as applicable to the aircraft specified 
therein.
    (c) A ground proximity warning system conforming to Sec. 121.360 or 
Sec. 135.153 of this chapter as applicable to the aircraft specified 
therein.
    (d) A terrain awareness and warning system conforming to 
Sec. 121.354 or Sec. 135.154 of this chapter as applicable to the 
aircraft specified therein.
    (e) A traffic alert and collision avoidance system conforming to 
Sec. 121.356 or Sec. 135.180 of this chapter as applicable to the 
aircraft specified therein.
    (f) Either:
    (1) Airborne thunderstorm detection equipment conforming to 
Sec. 135.173 of this chapter as applicable to the aircraft specified in 
that section; or
    (2) Airborne weather radar conforming to Sec. 121.357 or 
Sec. 135.175 of this chapter as applicable to the aircraft specified in 
that section.


Sec. 91.1047  Drug and alcohol misuse program.

    (a) Each program manager shall provide each direct employee 
performing flight crew member, flight attendant, flight instructor, or 
aircraft maintenance duties with drug and alcohol misuse education.
    (b) No program manager may use any contract employee to perform 
flight crew member, flight attendant, flight instructor, or aircraft 
maintenance duties for the program manager unless that contract 
employee has been provided with drug and alcohol misuse education.
    (c) Program managers shall disclose to their owners and prospective 
owners the existence or absence of a drug and alcohol misuse education 
program and/or a company testing program. If the program manager has 
implemented a testing program, the program manager's disclosure shall 
include the following:
    (1) Information on the substances that they test for, e.g., alcohol 
and a list of the drugs;
    (2) The persons tested, the types of tests, e.g., pre-employment, 
random, reasonable cause/suspicion, post accident, return to duty and 
follow-up; and
    (3) The degree to which the program manager's company testing 
program is consistent with or not consistent with the federally 
mandated drug and alcohol misuse prevention program on these points.
    (d) If a program aircraft is operated on a program flight into an 
airport at which no maintenance personnel are available that are 
subject to the requirements of paragraphs (a) or (b) of this section 
and emergency maintenance is required, the program manager may use 
persons not meeting the requirements of paragraphs (a) or (b) of this 
section to provide such emergency maintenance. A program

[[Page 37548]]

manager shall notify the Drug Abatement Program Division, AAM-800, 800 
Independence Avenue, SW., Washington, DC 20591 in writing within 10 
days after being provided emergency maintenance in accordance with this 
paragraph. A program manager shall retain copies of all such written 
notifications for two years.
    (e) For purposes of this section, emergency maintenance means 
maintenance which--
    (1) is not scheduled, and
    (2) is made necessary by an aircraft condition not discovered prior 
to the departure for that location.
    (f) Notwithstanding paragraphs (a) and (b) of this section, drug 
and alcohol misuse education conducted under an FAA-approved drug and 
alcohol misuse prevention program may be used to satisfy these 
requirements.


Sec. 91.1049  Personnel.

    (a) Each program manager and each fractional owner shall use in 
program operations on program aircraft flight crews meeting 
Sec. 91.1053 criteria and qualified under the appropriate regulations. 
The program manager shall provide oversight of those crews.
    (b) Unless otherwise authorized by the Administrator, each program 
manager shall employ at least three (3) pilots per program aircraft. 
Additional flight crew staffing shall be determined based on the 
following factors, at a minimum:
    (1) Number of program aircraft.
    (2) Program manager flight, duty, and rest time considerations, and 
in all cases within the limits set forth in Secs. 91.1057 through 
91.1061 of this part.
    (3) Vacations.
    (4) Operational efficiencies.
    (5) Training.
    (c) Each program manager shall publish pilot and flight attendant 
duty schedules sufficiently in advance to follow the flight, duty, and 
rest time limits in Secs. 91.1057 through 91.1061 of this part in 
program operations.
    (d) Unless otherwise authorized by the Administrator, when any 
program aircraft is flown in program operations with passengers 
onboard, the crew shall consist of at least two (2) qualified pilots 
employed or contracted by the program manager or the fractional owner.
    (e) The program manager shall ensure that trained and qualified 
scheduling or flight release personnel are on duty to schedule and 
release program aircraft during all hours that such aircraft are 
available for program operations.


Sec. 91.1051  Pilot safety background check.

    Within 90 days of an individual beginning service as a pilot, the 
program manager shall request the following information:
    (a) FAA records pertaining to--
    (1) Current pilot certificates and associated type ratings.
    (2) Current medical certificates.
    (3) Summaries of legal enforcement actions resulting in a finding 
by the Administrator of a violation.
    (b) Records from all previous employers during the five years 
preceding the date of the employment application where the applicant 
worked as a pilot. If any of these firms are in bankruptcy, the records 
shall be requested from the trustees in bankruptcy for those employees. 
If the previous employer is no longer in business, a documented good 
faith effort shall be made to obtain the records. Records from previous 
employers shall include, as applicable--
    (1) Crew member records.
    (2) Drug testing--collection, testing, and rehabilitation records 
pertaining to the individual.
    (3) Alcohol misuse prevention program records pertaining to the 
individual.
    (4) The applicant's individual record that includes certifications, 
ratings, aeronautical experience, effective date and class of the 
medical certificate, etc.
    (c) Motor vehicle driving record of the pilot candidate from the 
National Driver Register (NDR) database from the chief driver licensing 
official of the state.


Sec. 91.1053  Flight crew experience.

    (a) No program manager or owner may use any person, nor may any 
person serve, as a pilot in command or second in command of a program 
aircraft, or as a flight attendant on a program aircraft, in program 
operations under this subpart unless that person has met the applicable 
requirements of part 61 of this chapter and has the following 
experience and ratings:
    (1) Total flight time for all pilots:
    (i) Pilot in command--A minimum of 1,500 hours.
    (ii) Second in command--A minimum of 500 hours.
    (2) For multi-engine turbine-powered fixed-wing and powered-lift 
aircraft, the following FAA certification and ratings requirements:
    (i) Pilot in command--Airline transport pilot and applicable type 
ratings
    (ii) Second in command--Commercial pilot and instrument ratings
    (iii) Flight attendant (if required or used)--Appropriately trained 
personnel
    (3) For all other aircraft, the following FAA certification and 
rating requirements:
    (i) Pilot in command--Commercial pilot and instrument ratings
    (ii) Second in command--Commercial pilot and instrument ratings
    (iii) Flight attendant (if required or used)--appropriately trained 
personnel
    (b) The Administrator may authorize deviations from paragraph (a) 
of this section if the Flight Standards District Office which issued 
the program manager's management specifications finds that the 
crewmember has comparable experience, and can effectively perform the 
functions associated with the position in accordance with the 
requirements of this chapter. Grants of deviation under this paragraph 
may be granted after consideration of the size and scope of the 
operation, the qualifications of the intended personnel and the 
circumstances set forth in Sec. 91.1055(b)(1)-(3). The Administrator 
may, at any time, terminate any grant of deviation authority issued 
under this paragraph.


Sec. 91.1055  Pilot operating limitations and pairing requirement.

    (a) If the second in command of a fixed-wing program aircraft has 
fewer than 100 hours of flight time as second in command flying for the 
program manager in the type aircraft being flown, and the pilot in 
command is not an appropriately qualified check pilot, the pilot in 
command shall make all takeoffs and landings in any of the following 
situations:
    (1) The prevailing visibility for the airport is at or below \3/4\ 
mile.
    (2) The runway visual range for the runway to be used is at or 
below 4,000 feet.
    (3) The runway to be used has water, snow, slush or similar 
contamination that may adversely affect aircraft performance.
    (4) The braking action on the runway to be used is reported to be 
less than ``good.''
    (5) The crosswind component for the runway to be used is in excess 
of 15 knots.
    (6) Windshear is reported in the vicinity of the airport.
    (7) Any other condition in which the pilot in command determines it 
to be prudent to exercise the pilot in command's authority.
    (b) No program manager may release a program flight under this 
subpart unless, for that type aircraft, either the pilot in command or 
the second in command has at least 75 hours of program flight time, 
either as pilot in command or second in command. The Administrator may, 
upon application by the program manager, authorize deviations from the 
requirements of this paragraph by an appropriate

[[Page 37549]]

amendment to the management specifications in any of the following 
circumstances:
    (1) A newly authorized program manager does not employ any pilots 
who meet the minimum requirements of this paragraph.
    (2) An existing program manager adds to its fleet a new category 
and class aircraft not used before in its operation.
    (3) An existing program manager establishes a new base to which it 
assigns pilots who will be required to become qualified on the aircraft 
operated from that base.
    (c) No flight crew may be assigned in any capacity in a program 
operation to more than two (2) aircraft types that require a separate 
type rating.


Sec. 91.1057  Flight, duty and rest time requirements.

    (a) For purposes of this subpart--
    Augmented flight crew means at least three (3) pilots.
    Calendar day means the period of elapsed time, using Coordinated 
Universal Time or local time that begins at midnight and ends 24 hours 
later at the next midnight.
    Duty period means the period of elapsed time between reporting for 
an assignment involving flight time and release from that assignment by 
the program manager. The time is calculated using either Coordinated 
Universal Time or local time to reflect the total elapsed time.
    Extension of normal duty means an increase in the period of duty 
due to circumstances beyond the control of the program manager or 
flight crewmember (such as adverse weather) that are not known at the 
time of departure and that prevent the flightcrew from reaching the 
destination within the planned flight time.
    Multi-time zone flight means a continuous east or west flight 
crossing five (5) or more time zones that is not north of 60 degrees 
north latitude or south of 60 degrees south latitude.
    Planned expanded duty means the planned maximum flight and duty 
time and minimum rest time that may be scheduled for long-range 
aircraft capable of exceeding 10 hours of flight unless the flightcrew 
is augmented by a third pilot.
    Reserve status means that status in which a flight crew member, by 
arrangement with the program manager: Holds himself or herself fit to 
fly to the extent that this is within the control of the flight crew 
member; remains within a reasonable response time of the aircraft as 
agreed between the flight crew member and the program manager; and 
maintains a ready means whereby the flight crew member may be contacted 
by the program manager. Reserve status is not part of any duty period. 
A flight crew member on reserve status who is called to duty may 
perform a normal duty period under Sec. 91.1059 or Sec. 91.1061 if, 
following the flight crew member's last duty period, the flight crew 
member received the minimum rest before duty required by Sec. 91.1059 
or Sec. 91.1061, respectively, before entering reserve status.
    Rest period means a period of time required pursuant to this 
subpart that is free of all responsibility for work or duty prior to 
the commencement of, or following completion of, a duty period, and 
during which the flight crew member cannot be required to receive 
contact from the program manager for purposes of program operations.
    Standby means that portion of a duty period during which a flight 
crew member is subject to the control of the program manager and holds 
himself or herself in a condition of readiness to undertake a flight.
    (b) A program manager may assign a flight crewmember and a flight 
crewmember may accept an assignment for program flight time only when 
the applicable requirements of this section are met.
    (c) No program manager may assign any flight crewmember to any 
program duty during any required rest period.
    (d) Time spent in transportation, not local in character, that a 
program manager requires of a flight crewmember and provides to 
transport the crewmember to an airport at which he is to serve on a 
flight as a crewmember, or from an airport at which he was relieved 
from duty to return to his home station, is not considered part of a 
rest period.
    (e) A flight crewmember may continue a flight assignment if the 
flights to which he is assigned normally terminate within the 
limitations, but due to circumstances beyond the control of the program 
manager or flight crewmember (such as adverse weather conditions), are 
not at the time of departure expected to reach their destination within 
the planned flight time.
    (f) Each flight assignment shall provide for at least 10 
consecutive hours of rest during the 24-hour period that precedes the 
planned completion time of the assignment.
    (g) The program manager shall provide each flight crewmember at 
least 13 rest periods of at least 24 consecutive hours each in each 
calendar quarter.
    (h) Any extension of planned duty or flight time shall be approved 
by the program manager with the concurrence of the flight crew but in 
no event may exceed the maximum time limits set forth in Secs. 91.1059 
and 91.1061 of this part, as applicable.
    (i) A flight crew member on standby status may decline to undertake 
flight activities if, in the flight crew member's determination, to do 
so would not be consistent with the standard of safe operation required 
under this subpart, this part, and applicable provisions of this title.


Sec. 91.1059  Flight time limitations and rest requirements: One or two 
pilot crews.

    (a) No program manager may assign any flight crewmember, and no 
flight crewmember may accept an assignment, for flight time as a member 
of a one- or two-pilot crew if that crewmember's total flight time in 
all commercial flying will exceed--
    (1) 500 hours in any calendar quarter;
    (2) 800 hours in any two consecutive calendar quarters; or
    (3) 1,400 hours in any calendar year.
    (b) Except as provided in paragraph (c) of this section, during any 
24 consecutive hours the total flight time of the assigned flight, when 
added to any commercial flying by that flight crewmember, may not 
exceed--
    (1) 8 hours for a flight crew consisting of one pilot; or (2) 10 
hours for a flight crew consisting of two pilots qualified under this 
subpart for the operation being conducted.
    (c) No program manager may assign any flight crewmember, and no 
flight crewmember may accept an assignment, if that crewmember's flight 
time or duty time will exceed, or rest time will be less than--

----------------------------------------------------------------------------------------------------------------
                                                                  Extension of normal
                                             Normal duty                  duty            Planned expanded duty
----------------------------------------------------------------------------------------------------------------
(1) Minimum Rest Before Duty.........  10 Hours...............  10 Hours...............  10 Hours.
(2) Duty Time........................  Up to 14 Hours.........  Exceeding 14 Hours up    Exceeding 14 Hours up
                                                                 to 16 Hours.             to 16 Hours.
(3) Flight Time......................  Up to 10 Hours.........  Exceeding 10 Hours up    Up to 12 Hours.
                                                                 to 12 Hours.

[[Page 37550]]

 
(4) Minimum After Duty Rest..........  10 Hours...............  12 Hours...............  Equal to Duty Time but
                                                                                          never less than 10
                                                                                          Hours.
(5) Minimum After Duty Rest Period     14 Hours...............  18 Hours...............  24 Hours.
 for Multi-Time Zone Flights.
----------------------------------------------------------------------------------------------------------------

Sec. 91.1061  Augmented flight crews.

    No program manager may assign any flight crewmember, and no flight 
crewmember may accept an assignment, if that crewmember's flight time 
or duty time will exceed, or rest time will be less than--

----------------------------------------------------------------------------------------------------------------
                                                  Normal duty                    Planned expanded duty
----------------------------------------------------------------------------------------------------------------
(a) Minimum Rest Before Duty............  10 Hours...................  10 Hours.
(b) Duty Time...........................  14 Hours-16 Hours..........  16 Hours-18 Hours.
(c) Flight Time.........................  Up to 12 Hours.............  Up to 16 Hours.
(d) Minimum After Duty Rest.............  12 Hours...................  18 Hours.
(e) Minimum After Duty Rest Period for    18 hours...................  24 hours.
 Multi-Time Zone Flights.
----------------------------------------------------------------------------------------------------------------

Sec. 91.1063  Testing and training: Applicability and terms used.

    (a) Sections 91.1065 through 91.1107 of this part:
    (1) Prescribe the tests and checks required for pilots and flight 
attendant crewmembers and for the approval of check pilots in 
operations under this subpart;
    (2) Prescribe the requirements for establishing and maintaining an 
approved training program for crewmembers, check pilot and instructors, 
and other operations personnel employed or used by the program manager 
in program operations;
    (3) Prescribe the requirements for the qualification, approval and 
use of aircraft simulators and flight training devices in the conduct 
of an approved training program; and
    (4) Permits training center personnel authorized under part 142 of 
this chapter who meet the requirements of Sec. 91.1075 to conduct 
training, testing and checking under contract or other arrangements to 
those persons subject to the requirements of this subpart.
    (b) If authorized by the Administrator, a program manager may 
comply with the applicable sections of subparts N and O of part 121 
instead of Secs. 91.1065 through 1107, except for the operating 
experience requirements of Sec. 121.434 of this chapter.
    (c) If authorized by the Administrator, a program manager may use 
the applicable training and testing requirements of subparts G and H of 
part 135 or the applicable sections of subparts N and O of part 121 to 
meet the training and testing requirements of this subpart.
    (d) For the purposes of this subpart, the following terms and 
definitions apply:
    (1) Initial training. The training required for crewmembers who 
have not qualified and served in the same capacity on an aircraft.
    (2) Transition training. The training required for crewmembers who 
have qualified and served in the same capacity on another aircraft.
    (3) Upgrade training. The training required for crewmembers who 
have qualified and served as second in command on a particular aircraft 
type, before they serve as pilot in command on that aircraft.
    (4) Differences training. The training required for crewmembers who 
have qualified and served on a particular type aircraft, when the 
Administrator finds differences training is necessary before a 
crewmember serves in the same capacity on a particular variation of 
that aircraft.
    (5) Recurrent training. The training required for crewmembers to 
remain adequately trained and currently proficient for each aircraft 
crewmember position, and type of operation in which the crewmember 
serves.
    (6) In flight. The maneuvers, procedures, or functions that shall 
be conducted in the aircraft.
    (7) Training center. An organization governed by the applicable 
requirements of part 142 of this chapter that conducts training, 
testing, and checking under contract or other arrangement to program 
managers subject to the requirements of this subpart.
    (8) Requalification training. The training required for crewmembers 
previously trained and qualified, but who have become unqualified due 
to not having met within the required period the--
    (i) Recurrent pilot testing requirements of Sec. 91.1107;
    (ii) Instrument proficiency check requirements of Sec. 91.1069.


Sec. 91.1065  Initial and recurrent pilot testing requirements.

    (a) No program manager or owner may use a pilot, nor may any person 
serve as a pilot, unless, since the beginning of the 12th calendar 
month before that service, that pilot has passed a written or oral 
test, given by the Administrator or an authorized check pilot, on that 
pilot's knowledge in the following areas--
    (1) The appropriate provisions of parts 61 and 91 of this chapter 
and the management specifications and the operating manual of the 
program manager;
    (2) For each type of aircraft to be flown by the pilot, the 
aircraft powerplant, major components and systems, major appliances, 
performance and operating limitations, standard and emergency operating 
procedures, and the contents of the accepted operating manual or 
equivalent, as applicable;
    (3) For each type of aircraft to be flown by the pilot, the method 
of determining compliance with weight and balance limitations for 
takeoff, landing and enroute operations;
    (4) Navigation and use of air navigation aids appropriate to the 
operation or pilot authorization, including, when applicable, 
instrument approach facilities and procedures;
    (5) Air traffic control procedures, including IFR procedures when 
applicable;
    (6) Meteorology in general, including the principles of frontal 
systems, icing, fog, thunderstorms, and windshear, and, if appropriate 
for the operation of the program manager, high altitude weather;
    (7) Procedures for--
    (i) Recognizing and avoiding severe weather situations;

[[Page 37551]]

    (ii) Escaping from severe weather situations, in case of 
inadvertent encounters, including low-altitude windshear (except that 
rotorcraft aircraft pilots are not required to be tested on escaping 
from low-altitude windshear); and
    (iii) Operating in or near thunderstorms (including best 
penetration altitudes), turbulent air (including clear air turbulence), 
icing, hail, and other potentially hazardous meteorological conditions; 
and
    (8) New equipment, procedures, or techniques, as appropriate.
    (b) No program manager or owner may use a pilot, nor may any person 
serve as a pilot, in any aircraft unless, since the beginning of the 
12th calendar month before that service, that pilot has passed a 
competency check given by the Administrator or an authorized check 
pilot in that class of aircraft, if single-engine aircraft other than 
turbojet, or that type of aircraft, if rotorcraft, multiengine 
aircraft, or turbojet airplane, to determine the pilot's competence in 
practical skills and techniques in that aircraft or class of aircraft. 
The extent of the competency check shall be determined by the 
Administrator or authorized check pilot conducting the competency 
check. The competency check may include any of the maneuvers and 
procedures currently required for the original issuance of the 
particular pilot certificate required for the operations authorized and 
appropriate to the category, class and type of aircraft involved. For 
the purposes of this paragraph, type, as to an airplane, means any one 
of a group of airplanes determined by the Administrator to have a 
similar means of propulsion, the same manufacturer, and no 
significantly different handling or flight characteristics. For the 
purposes of this paragraph, type, as to a rotorcraft, means a basic 
make and model.
    (c) The instrument proficiency check required by Sec. 91.1069 may 
be substituted for the competency check required by this section for 
the type of aircraft used in the check.
    (d) For the purpose of this subpart, competent performance of a 
procedure or maneuver by a person to be used as a pilot requires that 
the pilot be the obvious master of the aircraft, with the successful 
outcome of the maneuver never in doubt.
    (e) The Administrator or authorized check pilot certifies the 
competency of each pilot who passes the knowledge or flight check in 
the program manager's pilot records.
    (f) All or portions of a required competency check may be given in 
an aircraft simulator or other appropriate training device, if approved 
by the Administrator.


Sec. 91.1067  Initial and recurrent flight attendant crewmember testing 
requirements.

    No program manager or owner may use a flight attendant crewmember, 
nor may any person serve as a flight attendant crewmember unless, since 
the beginning of the 12th calendar month before that service, the 
program manager has determined by appropriate initial and recurrent 
testing that the person is knowledgeable and competent in the following 
areas as appropriate to assigned duties and responsibilities--
    (a) Authority of the pilot in command;
    (b) Passenger handling, including procedures to be followed in 
handling deranged persons or other persons whose conduct might 
jeopardize safety;
    (c) Crewmember assignments, functions, and responsibilities during 
ditching and evacuation of persons who may need the assistance of 
another person to move expeditiously to an exit in an emergency;
    (d) Briefing of passengers;
    (e) Location and operation of portable fire extinguishers and other 
items of emergency equipment;
    (f) Proper use of cabin equipment and controls;
    (g) Location and operation of passenger oxygen equipment;
    (h) Location and operation of all normal and emergency exits, 
including evacuation chutes and escape ropes; and
    (i) Seating of persons who may need assistance of another person to 
move rapidly to an exit in an emergency as prescribed by the program 
manager's operations manual.


Sec. 91.1069  Flight crew: Instrument proficiency check requirements.

    (a) No program manager or owner may use a pilot, nor may any person 
serve, as a pilot in command of an aircraft under IFR unless, since the 
beginning of the 6th calendar month before that service, that pilot has 
passed an instrument proficiency check under this section administered 
by the Administrator or an authorized check pilot.
    (b) No program manager or owner may use a pilot, nor may any person 
serve, as a second command pilot of an aircraft under IFR unless, since 
the beginning of the 12th calendar month before that service, that 
pilot has passed an instrument proficiency check under this section 
administered by the Administrator or an authorized check pilot.
    (c) No pilot may use any type of precision instrument approach 
procedure under IFR unless, since the beginning of the 6th calendar 
month before that use, the pilot satisfactorily demonstrated that type 
of approach procedure. No pilot may use any type of nonprecision 
approach procedure under IFR unless, since the beginning of the 6th 
calendar month before that use, the pilot has satisfactorily 
demonstrated either that type of approach procedure or any other two 
different types of nonprecision approach procedures. The instrument 
approach procedure or procedures shall include at least one straight-in 
approach, one circling approach, and one missed approach. Each type of 
approach procedure demonstrated shall be conducted to published 
minimums for that procedure.
    (d) The instrument proficiency checks required by paragraphs (a) 
and (b) of this section consists of an oral or written equipment test 
and a flight check under simulated or actual IFR conditions. The 
equipment test includes questions on emergency procedures, engine 
operation, fuel and lubrication systems, power settings, stall speeds, 
best engine-out speed, propeller and supercharger operations, and 
hydraulic, mechanical, and electrical systems, as appropriate. The 
flight check includes navigation by instruments, recovery from 
simulated emergencies, and standard instrument approaches involving 
navigational facilities which that pilot is to be authorized to use.
    (e) Each pilot taking the instrument proficiency check shall show 
that standard of competence required by Sec. 91.1065(d).
    (1) The instrument proficiency check must--
    (i) For a pilot in command of an aircraft, include the procedures 
and maneuvers for an airline transport pilot certificate in the 
particular type of aircraft, if appropriate; and
    (ii) For a pilot in command of a rotorcraft or a second in command 
of any aircraft include the procedures and maneuvers for a commercial 
pilot certificate with an instrument rating and, if required, for the 
appropriate type rating.
    (2) The instrument proficiency check must be given by an authorized 
check pilot or by the Administrator.
    (f) If the pilot is assigned to pilot only one type of aircraft, 
that pilot shall take the instrument proficiency check required by 
paragraph (a) of this section in that type of aircraft.
    (g) If the pilot in command is assigned to pilot more than one type 
of aircraft, that pilot shall take the instrument proficiency check 
required by paragraph (a) of this section in each type of aircraft

[[Page 37552]]

to which that pilot is assigned, in rotation, but not more than one 
flight check during each period described in paragraph (a) of this 
section.
    (h) If the pilot in command is assigned to pilot both single-engine 
and multiengine aircraft, that pilot shall initially take the 
instrument proficiency check required by paragraph (a) of this section 
in a multiengine aircraft, and each succeeding check alternately in 
single-engine and multiengine aircraft, but not more than one flight 
check during each period described in paragraph (a) of this section.
    (i) All or portions of a required flight check may be given in an 
aircraft simulator or other appropriate training device, if approved by 
the Administrator.


Sec. 91.1071  Crewmember: Tests and checks, grace provisions, training 
to accepted standards.

    (a) If a crewmember who is required to take a test or a flight 
check under this subpart, completes the test or flight check in the 
calendar month before or after the calendar month in which it is 
required, that crewmember is considered to have completed the test or 
check in the calendar month in which it is required.
    (b) If a pilot being checked under this subpart fails any of the 
required maneuvers, the person giving the check may give additional 
training to the pilot during the course of the check. In addition to 
repeating the maneuvers failed, the person giving the check may require 
the pilot being checked to repeat any other maneuvers that are 
necessary to determine the pilot's proficiency. If the pilot being 
checked is unable to demonstrate satisfactory performance to the person 
conducting the check, the program manager may not use the pilot, nor 
may the pilot serve, as a flight crewmember in operations under this 
subpart until the pilot has satisfactorily completed the check.


Sec. 91.1073  Training program: General.

    (a) Each program manager shall have a training program and shall:
    (1) Establish, obtain the appropriate initial and final approval 
of, and provide a training program that meets this subpart and that 
ensures that each crewmember, including each flight attendant if the 
program manager uses a flight attendant crewmember, flight instructor, 
check pilot, and each person assigned duties for the carriage and 
handling of hazardous materials (as defined in 49 CFR 171.8) is 
adequately trained to perform these assigned duties.
    (2) Provide adequate ground and flight training facilities and 
properly qualified ground instructors for the training required by this 
subpart.
    (3) Provide and keep current for each aircraft type used and, if 
applicable, the particular variations within the aircraft type, 
appropriate training material, examinations, forms, instructions, and 
procedures for use in conducting the training and checks required by 
this subpart.
    (4) Provide enough flight instructors, check pilots, and simulator 
instructors to conduct required flight training and flight checks, and 
simulator training courses allowed under this subpart.
    (b) Whenever a crewmember who is required to take recurrent 
training under this subpart completes the training in the calendar 
month before, or the calendar month after, the month in which that 
training is required, the crewmember is considered to have completed it 
in the calendar month in which it was required.
    (c) Each instructor, supervisor, or check pilot who is responsible 
for a particular ground training subject, segment of flight training, 
course of training, flight check, or competence check under this 
subpart shall certify as to the proficiency and knowledge of the 
crewmember, flight instructor, or check pilot concerned upon completion 
of that training or check. That certification must be made a part of 
the crewmember's record. When the certification required by this 
paragraph is made by an entry in a computerized recordkeeping system, 
the certifying instructor, supervisor, or check pilot, shall be 
identified with that entry. However, the signature of the certifying 
instructor, supervisor, or check pilot, is not required for 
computerized entries.
    (d) Training subjects that apply to more than one aircraft or 
crewmember position and that have been satisfactorily completed during 
previous training while employed by the program manager for another 
aircraft or another crewmember position, need not be repeated during 
subsequent training other than recurrent training.
    (e) Aircraft simulators and other training devices may be used in 
the program manager's training program if approved by the 
Administrator.
    (f) Each program manager shall be responsible for establishing safe 
and efficient crew management practices for all phases of flight in 
program operations including cockpit resource management training for 
all crew members used in program operations.
    (g) If an aircraft simulator has been approved by the Administrator 
for use in the program manager's training program, the program manager 
shall ensure that each pilot annually completes at least one flight 
training session in an approved simulator for at least one program 
aircraft. The training session may be the flight training portion of 
any of the pilot training or check requirements of this subpart, 
including the initial, transition, upgrade, requalification, 
differences, or recurrent training, or the accomplishment of a 
competency check or instrument proficiency check. If there is no 
approved simulator for that aircraft type in operation, then all flight 
training and checking must be accomplished in the aircraft.


Sec. 91.1075  Training program: Special rules.

    (a) Other than the program manager, only another program manager 
operating under this subpart or a training center certificated under 
part 142 of this chapter is eligible under this subpart to conduct 
training, testing, and checking under contract or other arrangement to 
those persons subject to the requirements of this subpart.
    (b) A program manager may contract with, or otherwise arrange to 
use the services of, a training center certificated under part 142 of 
this chapter to conduct training, testing, and checking required by 
this subpart only if the training center--
    (1) Holds applicable training specifications issued under part 142 
of this chapter;
    (2) Has facilities, training equipment, and courseware meeting the 
applicable requirements of part 142 of this chapter;
    (3) Has approved curriculums, curriculum segments, and portions of 
curriculum segments applicable for use in training courses required by 
this subpart; and
    (4) Has sufficient instructors and check pilots qualified under the 
applicable requirements of Secs. 91.1089 through 91.1095 to conduct 
training, testing, and checking to persons subject to the requirements 
of this subpart.


Sec. 91.1077  Training program and revision: Initial and final 
approval.

    (a) To obtain initial and final approval of a training program, or 
a revision to an approved training program, each program manager must 
submit to the Administrator--
    (1) An outline of the proposed or revised curriculum, that provides 
enough information for a preliminary evaluation of the proposed 
training program or revision; and
    (2) Additional relevant information that may be requested by the 
Administrator.
    (b) If the proposed training program or revision complies with this 
subpart, the Administrator grants initial approval in

[[Page 37553]]

writing after which the program manager may conduct the training under 
that program. The Administrator then evaluates the effectiveness of the 
training program and advises the program manager of deficiencies, if 
any, that must be corrected.
    (c) The Administrator grants final approval of the proposed 
training program or revision if the program manager shows that the 
training conducted under the initial approval in paragraph (b) of this 
section ensures that each person who successfully completes the 
training is adequately trained to perform that person's assigned 
duties.
    (d) Whenever the Administrator finds that revisions are necessary 
for the continued adequacy of a training program that has been granted 
final approval, the program manager shall, after notification by the 
Administrator, make any changes in the program that are found necessary 
by the Administrator. Within 30 days after the program manager receives 
the notice, it may file a petition to reconsider the notice with the 
Administrator. The filing of a petition to reconsider stays the notice 
pending a decision by the Administrator. However, if the Administrator 
finds that there is an emergency that requires immediate action in the 
interest of safety, the Administrator may, upon a statement of the 
reasons, require a change effective without stay.


Sec. 91.1079  Training program: Curriculum.

    (a) Each program manager must prepare and keep current a written 
training program curriculum for each type of aircraft for each 
crewmember required for that type aircraft. The curriculum must include 
ground and flight training required by this subpart.
    (b) Each training program curriculum must include the following:
    (1) A list of principal ground training subjects, including 
emergency training subjects, that are provided.
    (2) A list of all the training devices, mockups, systems trainers, 
procedures trainers, or other training aids that the program manager 
will use.
    (3) Detailed descriptions or pictorial displays of the approved 
normal, abnormal, and emergency maneuvers, procedures and functions 
that will be performed during each flight training phase or flight 
check, indicating those maneuvers, procedures and functions that are to 
be performed during the inflight portions of flight training and flight 
checks.


Sec. 91.1081  Crewmember training requirements.

    (a) Each program manager must include in its training program the 
following initial and transition ground training as appropriate to the 
particular assignment of the crewmember:
    (1) Basic indoctrination ground training for newly hired 
crewmembers including instruction in at least the--
    (i) Duties and responsibilities of crewmembers as applicable;
    (ii) Appropriate provisions of this chapter;
    (iii) Contents of the program manager's management specifications 
(not required for flight attendants); and
    (iv) Appropriate portions of the program manager's operating 
manual.
    (2) The initial and transition ground training in Secs. 91.1101 and 
91.1105, as applicable.
    (3) Emergency training in Sec. 91.1083.
    (b) Each training program shall provide the initial and transition 
flight training in Sec. 91.1103, as applicable.
    (c) Each training program must provide recurrent ground and flight 
training as provided in Sec. 91.1107.
    (d) Upgrade training in Secs. 91.1101 and 91.1103 for a particular 
type aircraft may be included in the training program for crewmembers 
who have qualified and served as second in command on that aircraft.
    (e) In addition to initial, transition, upgrade and recurrent 
training, each training program must provide ground and flight 
training, instruction, and practice necessary to ensure that each 
crewmember--
    (1) Remains adequately trained and currently proficient for each 
aircraft, crewmember position, and type of operation in which the 
crewmember serves; and
    (2) Qualifies in new equipment, facilities, procedures, and 
techniques, including modifications to aircraft.


Sec. 91.1083  Crewmember emergency training.

    (a) Each training program shall provide emergency training under 
this section for each aircraft type, model, and configuration, each 
crewmember, and each kind of operation conducted, as appropriate for 
each crewmember and the program manager.
    (b) Emergency training must provide the following:
    (1) Instruction in emergency assignments and procedures, including 
coordination among crewmembers.
    (2) Individual instruction in the location, function, and operation 
of emergency equipment including--
    (i) Equipment used in ditching and evacuation;
    (ii) First aid equipment and its proper use; and
    (iii) Portable fire extinguishers, with emphasis on the type of 
extinguisher to be used on different classes of fires.
    (3) Instruction in the handling of emergency situations including--
    (i) Rapid decompression;
    (ii) Fire in flight or on the surface and smoke control procedures 
with emphasis on electrical equipment and related circuit breakers 
found in cabin areas;
    (iii) Ditching and evacuation;
    (iv) Illness, injury, or other abnormal situations involving 
passengers or crewmembers; and
    (v) Hijacking and other unusual situations.
    (4) Review of the program manager's previous aircraft accidents and 
incidents involving actual emergency situations.
    (c) Each crewmember must perform at least the following emergency 
drills, using the proper emergency equipment and procedures, unless the 
Administrator finds that, for a particular drill, the crewmember can be 
adequately trained by demonstration:
    (1) Ditching, if applicable.
    (2) Emergency evacuation.
    (3) Fire extinguishing and smoke control.
    (4) Operation and use of emergency exits, including deployment and 
use of evacuation chutes, if applicable.
    (5) Use of crew and passenger oxygen.
    (6) Removal of life rafts from the aircraft, inflation of the life 
rafts, use of life lines, and boarding of passengers and crew, if 
applicable.
    (7) Donning and inflation of life vests and the use of other 
individual flotation devices, if applicable.
    (d) Crewmembers who serve in operations above 25,000 feet must 
receive instruction in the following:
    (1) Respiration.
    (2) Hypoxia.
    (3) Duration of consciousness without supplemental oxygen at 
altitude.
    (4) Gas expansion.
    (5) Gas bubble formation.
    (6) Physical phenomena and incidents of decompression.


Sec. 91.1085  Hazardous materials recognition training.

    No program manager may use any pilot to perform, and no pilot may 
perform, any assigned duties and responsibilities for the handling or 
carriage of hazardous materials (as defined in 49 CFR 171.8), unless 
that pilot has received training in the recognition of hazardous 
materials.

[[Page 37554]]

Sec. 91.1087  Approval of aircraft simulators and other training 
devices.

    (a) Training courses using aircraft simulators and other training 
devices may be included in the program manager's training program if 
approved by the Administrator.
    (b) Each aircraft simulator and other training device that is used 
in a training course or in checks required under this subpart must meet 
the following requirements:
    (1) It must be specifically approved for--
    (i) The program manager; and
    (ii) The particular maneuver, procedure, or crewmember function 
involved.
    (2) It must maintain the performance, functional, and other 
characteristics that are required for approval.
    (3) Additionally, for aircraft simulators, it must be--
    (i) Approved for the type aircraft and, if applicable, the 
particular variation within type for which the training or check is 
being conducted; and
    (ii) Modified to conform with any modification to the aircraft 
being simulated that changes the performance, functional, or other 
characteristics required for approval.
    (c) A particular aircraft simulator or other training device may be 
used by more than one program manager.
    (d) In granting initial and final approval of training programs or 
revisions to them, the Administrator considers the training devices, 
methods, and procedures listed in the program manager's curriculum 
under Sec. 91.1079.


Sec. 91.1089  Qualifications: Check pilots (aircraft) and check pilots 
(simulator).

    (a) For the purposes of this section and Sec. 91.1093:
    (1) A check pilot (aircraft) is a person who is qualified to 
conduct flight checks in an aircraft, in a flight simulator, or in a 
flight training device for a particular type aircraft.
    (2) A check pilot (simulator) is a person who is qualified to 
conduct flight checks, but only in a flight simulator, in a flight 
training device, or both, for a particular type aircraft.
    (3) Check pilots (aircraft) and check pilots (simulator) are those 
check pilots who perform the functions described in Secs. 91.1073(a)(4) 
and (c).
    (b) No program manager may use a person, nor may any person serve 
as a check pilot (aircraft) in a training program established under 
this subpart unless, with respect to the aircraft type involved, that 
person--
    (1) Holds the pilot certificates and ratings required to serve as a 
pilot in command in operations under this subpart;
    (2) Has satisfactorily completed the training phases for the 
aircraft, including recurrent training, that are required to serve as a 
pilot in command in operations under this subpart;
    (3) Has satisfactorily completed the proficiency or competency 
checks that are required to serve as a pilot in command in operations 
under this subpart;
    (4) Has satisfactorily completed the applicable training 
requirements of Sec. 91.1093;
    (5) Holds at least a Class III medical certificate unless serving 
as a required crewmember, in which case holds a Class I or Class II 
medical certificate as appropriate; and
    (6) Has been approved by the Administrator for the check pilot 
duties involved.
    (c) No program manager may use a person, nor may any person serve 
as a check pilot (simulator) in a training program established under 
this subpart unless, with respect to the aircraft type involved, that 
person meets the provisions of paragraph (b) of this section, or--
    (1) Holds the applicable pilot certificates and ratings, except 
medical certificate, required to serve as a pilot in command in 
operations under this subpart;
    (2) Has satisfactorily completed the appropriate training phases 
for the aircraft, including recurrent training, that are required to 
serve as a pilot in command in operations under this subpart;
    (3) Has satisfactorily completed the appropriate proficiency or 
competency checks that are required to serve as a pilot in command in 
operations under this subpart;
    (4) Has satisfactorily completed the applicable training 
requirements of Sec. 91.1093; and
    (5) Has been approved by the Administrator for the check pilot 
(simulator) duties involved.
    (d) Completion of the requirements in paragraphs (b)(2), (3), and 
(4) or (c)(2), (3), and (4) of this section, as applicable, shall be 
entered in the individual's training record maintained by the program 
manager.
    (e) A check pilot who does not hold an appropriate medical 
certificate may function as a check pilot (simulator), but may not 
serve as a flightcrew member in operations under this subpart.
    (f) A check pilot (simulator) must accomplish the following--
    (1) Fly at least two flight segments as a required crewmember for 
the type, class, or category aircraft involved within the 12-month 
period preceding the performance of any check pilot duty in a flight 
simulator; or
    (2) Satisfactorily complete an approved line-observation program 
within the period prescribed by that program and that shall precede the 
performance of any check pilot duty in a flight simulator.
    (g) The flight segments or line-observation program required in 
paragraph (f) of this section are considered to be completed in the 
month required if completed in the calendar month before or the 
calendar month after the month in which they are due.


Sec. 91.1091  Qualifications: Flight instructors (aircraft) and flight 
instructors (simulator).

    (a) For the purposes of this section and Sec. 91.1095:
    (1) A flight instructor (aircraft) is a person who is qualified to 
instruct in an aircraft, in a flight simulator, or in a flight training 
device for a particular type, class, or category aircraft.
    (2) A flight instructor (simulator) is a person who is qualified to 
instruct in a flight simulator, in a flight training device, or in 
both, for a particular type, class, or category aircraft.
    (3) Flight instructors (aircraft) and flight instructors 
(simulator) are those instructors who perform the functions described 
in Sec. 91.1073(a)(4) and (c).
    (b) No program manager may use a person, nor may any person serve 
as a flight instructor (aircraft) in a training program established 
under this subpart unless, with respect to the type, class, or category 
aircraft involved, that person--
    (1) Holds the pilot certificates and ratings required to serve as a 
pilot in command in operations under this subpart or part 121 or 135;
    (2) Has satisfactorily completed the training phases for the 
aircraft, including recurrent training, that are required to serve as a 
pilot in command in operations under this subpart;
    (3) Has satisfactorily completed the proficiency or competency 
checks that are required to serve as a pilot in command in operations 
under this subpart;
    (4) Has satisfactorily completed the applicable training 
requirements of Sec. 91.1095; and
    (5) Holds at least a Class III medical certificate.
    (c) No program manager may use a person, nor may any person serve 
as a flight instructor (simulator) in a training program established 
under this subpart, unless, with respect to the type, class, or 
category aircraft involved, that person meets the provisions of 
paragraph (b) of this section, or--

[[Page 37555]]

    (1) Holds the pilot certificates and ratings, except medical 
certificate, required to serve as a pilot in command in operations 
under this subpart or part 121 or 135;
    (2) Has satisfactorily completed the appropriate training phases 
for the aircraft, including recurrent training, that are required to 
serve as a pilot in command in operations under this subpart;
    (3) Has satisfactorily completed the appropriate proficiency or 
competency checks that are required to serve as a pilot in command in 
operations under this subpart; and
    (4) Has satisfactorily completed the applicable training 
requirements of Sec. 91.1095.
    (d) Completion of the requirements in paragraphs (b)(2), (3), and 
(4) or (c)(2), (3), and (4) of this section, as applicable, shall be 
entered in the individual's training record maintained by the program 
manager.
    (e) A pilot who does not hold a medical certificate may function as 
a flight instructor in an aircraft if functioning as a non-required 
crewmember, but may not serve as a flightcrew member in operations 
under this subpart.
    (f) A flight instructor (simulator) must accomplish the following--
    (1) Fly at least two flight segments as a required crewmember for 
the type, class, or category aircraft involved within the 12-month 
period preceding the performance of any flight instructor duty in a 
flight simulator; or
    (2) Satisfactorily complete an approved line-observation program 
within the period prescribed by that program and that must precede the 
performance of any check pilot duty in a flight simulator.
    (g) The flight segments or line-observation program required in 
paragraph (f) of this section are considered completed in the month 
required if completed in the calendar month before, or in the calendar 
month after, the month in which they are due.


Sec. 91.1093  Initial and transition training and checking: Check pilot 
(aircraft), check pilot (simulator).

    (a) No program manager may use a person nor may any person serve as 
a check pilot unless--
    (1) That person has satisfactorily completed initial or transition 
check pilot training; and
    (2) Within the preceding 24 calendar months, that person 
satisfactorily conducts a proficiency or competency check under the 
observation of an FAA inspector or an aircrew designated examiner 
employed by the program manager. The observation check may be 
accomplished in part or in full in an aircraft, in a flight simulator, 
or in a flight training device.
    (b) The observation check required by paragraph (a)(2) of this 
section is considered to have been completed in the month required if 
completed in the calendar month before or the calendar month after the 
month in which it is due.
    (c) The initial ground training for check pilots must include the 
following:
    (1) Check pilot duties, functions, and responsibilities.
    (2) The applicable provisions of the Code of Federal Regulations 
and the program manager's policies and procedures.
    (3) The applicable methods, procedures, and techniques for 
conducting the required checks.
    (4) Proper evaluation of student performance including the 
detection of--
    (i) Improper and insufficient training; and
    (ii) Personal characteristics of an applicant that could adversely 
affect safety.
    (5) The corrective action in the case of unsatisfactory checks.
    (6) The approved methods, procedures, and limitations for 
performing the required normal, abnormal, and emergency procedures in 
the aircraft.
    (d) The transition ground training for a check pilot must include 
the approved methods, procedures, and limitations for performing the 
required normal, abnormal, and emergency procedures applicable to the 
aircraft to which the check pilot is in transition.
    (e) The initial and transition flight training for a check pilot 
(aircraft) must include the following--
    (1) The safety measures for emergency situations that are likely to 
develop during a check;
    (2) The potential results of improper, untimely, or nonexecution of 
safety measures during a check;
    (3) Training and practice in conducting flight checks from the left 
and right pilot seats in the required normal, abnormal, and emergency 
procedures to ensure competence to conduct the pilot flight checks 
required by this subpart; and
    (4) The safety measures to be taken from either pilot seat for 
emergency situations that are likely to develop during checking.
    (f) The requirements of paragraph (e) of this section may be 
accomplished in full or in part in flight, in a flight simulator, or in 
a flight training device, as appropriate.
    (g) The initial and transition flight training for a check pilot 
(simulator) must include the following:
    (1) Training and practice in conducting flight checks in the 
required normal, abnormal, and emergency procedures to ensure 
competence to conduct the flight checks required by this subpart. This 
training and practice must be accomplished in a flight simulator or in 
a flight training device.
    (2) Training in the operation of flight simulators, flight training 
devices, or both, to ensure competence to conduct the flight checks 
required by this subpart.


Sec. 91.1095  Initial and transition training and checking: Flight 
instructors (aircraft), flight instructors (simulator).

    (a) No program manager may use a person nor may any person serve as 
a flight instructor unless--
    (1) That person has satisfactorily completed initial or transition 
flight instructor training; and
    (2) Within the preceding 24 calendar months, that person 
satisfactorily conducts instruction under the observation of an FAA 
inspector, a program manager check pilot, or an aircrew designated 
examiner employed by the program manager. The observation check may be 
accomplished in part or in full in an aircraft, in a flight simulator, 
or in a flight training device.
    (b) The observation check required by paragraph (a)(2) of this 
section is considered to have been completed in the month required if 
completed in the calendar month before, or the calendar month after, 
the month in which it is due.
    (c) The initial ground training for flight instructors shall 
include the following:
    (1) Flight instructor duties, functions, and responsibilities.
    (2) The applicable Code of Federal Regulations and the program 
manager's policies and procedures.
    (3) The applicable methods, procedures, and techniques for 
conducting flight instruction.
    (4) Proper evaluation of student performance including the 
detection of--
    (i) Improper and insufficient training; and
    (ii) Personal characteristics of an applicant that could adversely 
affect safety.
    (5) The corrective action in the case of unsatisfactory training 
progress.
    (6) The approved methods, procedures, and limitations for 
performing the required normal, abnormal, and emergency procedures in 
the aircraft.

[[Page 37556]]

    (7) Except for holders of a flight instructor certificate--
    (i) The fundamental principles of the teaching-learning process;
    (ii) Teaching methods and procedures; and
    (iii) The instructor-student relationship.
    (d) The transition ground training for flight instructors must 
include the approved methods, procedures, and limitations for 
performing the required normal, abnormal, and emergency procedures 
applicable to the type, class, or category aircraft to which the flight 
instructor is in transition.
    (e) The initial and transition flight training for flight 
instructors (aircraft) must include the following--
    (1) The safety measures for emergency situations that are likely to 
develop during instruction;
    (2) The potential results of improper or untimely safety measures 
during instruction;
    (3) Training and practice from the left and right pilot seats in 
the required normal, abnormal, and emergency maneuvers to ensure 
competence to conduct the flight instruction required by this subpart; 
and
    (4) The safety measures to be taken from either the left or right 
pilot seat for emergency situations that are likely to develop during 
instruction.
    (f) The requirements of paragraph (e) of this section may be 
accomplished in full or in part in flight, in a flight simulator, or in 
a flight training device, as appropriate.
    (g) The initial and transition flight training for a flight 
instructor (simulator) must include the following:
    (1) Training and practice in the required normal, abnormal, and 
emergency procedures to ensure competence to conduct the flight 
instruction required by this subpart. These maneuvers and procedures 
must be accomplished in full or in part in a flight simulator or in a 
flight training device.
    (2) Training in the operation of flight simulators, flight training 
devices, or both, to ensure competence to conduct the flight 
instruction required by this subpart.


Sec. 91.1097  Pilot and flight attendant crewmember training programs.

    (a) Each program manager shall establish and maintain an approved 
pilot training program, and each program manager who uses a flight 
attendant crewmember shall establish and maintain an approved flight 
attendant training program, that is appropriate to the operations to 
which each pilot and flight attendant is to be assigned, and will 
ensure that they are adequately trained to meet the applicable 
knowledge and practical testing requirements of Secs. 91.1065 through 
91.1071. However, the Administrator may authorize a deviation from this 
section if the Administrator finds that, because of the limited size 
and scope of the operation, safety will allow a deviation from these 
requirements.
    (b) Each program manager required to have a training program by 
paragraph (a) of this section shall include in that program ground and 
flight training curriculums for--
    (1) Initial training;
    (2) Transition training;
    (3) Upgrade training;
    (4) Differences training;
    (5) Recurrent training; and
    (6) Requalification training.
    (c) Each program manager required to have a training program by 
paragraph (a) of this section shall provide current and appropriate 
study materials for use by each required pilot and flight attendant.
    (d) The program manager shall furnish copies of the pilot and 
flight attendant crewmember training program, and all changes and 
additions, to the assigned representative of the Administrator. If the 
program manager uses training facilities of other persons, a copy of 
those training programs or appropriate portions used for those 
facilities shall also be furnished. Curricula that follow FAA published 
curricula may be cited by reference in the copy of the training program 
furnished to the representative of the Administrator and need not be 
furnished with the program.


Sec. 91.1099  Crewmember initial and recurrent training requirements.

    No program manager may use a person, nor may any person serve, as a 
crewmember in operations under this subpart unless that crewmember has 
completed the appropriate initial or recurrent training phase of the 
training program appropriate to the type of operation in which the 
crewmember is to serve since the beginning of the 12th calendar month 
before that service.


Sec. 91.1101  Pilots: Initial, transition, and upgrade ground training.

    Initial, transition, and upgrade ground training for pilots must 
include instruction in at least the following, as applicable to their 
duties:
    (a) General subjects--
    (1) The program manager's flight locating procedures;
    (2) Principles and methods for determining weight and balance, and 
runway limitations for takeoff and landing;
    (3) Enough meteorology to ensure a practical knowledge of weather 
phenomena, including the principles of frontal systems, icing, fog, 
thunderstorms, windshear and, if appropriate, high altitude weather 
situations;
    (4) Air traffic control systems, procedures, and phraseology;
    (5) Navigation and the use of navigational aids, including 
instrument approach procedures;
    (6) Normal and emergency communication procedures;
    (7) Visual cues before and during descent below DH or MDA; and
    (8) Other instructions necessary to ensure the pilot's competence.
    (b) For each aircraft type--
    (1) A general description;
    (2) Performance characteristics;
    (3) Engines and propellers;
    (4) Major components;
    (5) Major aircraft systems (i.e., flight controls, electrical, and 
hydraulic), other systems, as appropriate, principles of normal, 
abnormal, and emergency operations, appropriate procedures and 
limitations;
    (6) Knowledge and procedures for--
    (i) Recognizing and avoiding severe weather situations;
    (ii) Escaping from severe weather situations, in case of 
inadvertent encounters, including low-altitude windshear (except that 
rotorcraft pilots are not required to be trained in escaping from low-
altitude windshear);
    (iii) Operating in or near thunderstorms (including best 
penetration altitudes), turbulent air (including clear air turbulence), 
inflight icing, hail, and other potentially hazardous meteorological 
conditions; and
    (iv) Operating airplanes during ground icing conditions, (i.e., any 
time conditions are such that frost, ice, or snow may reasonably be 
expected to adhere to the aircraft), if the program manager expects to 
authorize takeoffs in ground icing conditions, including:
    (A) The use of holdover times when using deicing/anti-icing fluids;
    (B) Airplane deicing/anti-icing procedures, including inspection 
and check procedures and responsibilities;
    (C) Communications;
    (D) Airplane surface contamination (i.e., adherence of frost, ice, 
or snow) and critical area identification, and knowledge of how 
contamination adversely affects airplane performance and flight 
characteristics;
    (E) Types and characteristics of deicing/anti-icing fluids, if used 
by the program manager;
    (F) Cold weather preflight inspection procedures;

[[Page 37557]]

    (G) Techniques for recognizing contamination on the airplane;
    (7) Operating limitations;
    (8) Fuel consumption and cruise control;
    (9) Flight planning;
    (10) Each normal and emergency procedure; and
    (11) The approved manual.


Sec. 91.1103  Pilots: Initial, transition, upgrade, requalification, 
and differences flight training.

    (a) Initial, transition, upgrade, requalification, and differences 
training for pilots must include flight and practice in each of the 
maneuvers and procedures contained in each of the curriculums which are 
a part of the approved training program.
    (b) The maneuvers and procedures required by paragraph (a) of this 
section must be performed in flight, except to the extent that certain 
maneuvers and procedures may be performed in an aircraft simulator, or 
an appropriate training device, as allowed by this subpart.
    (c) If the program manager's approved training program includes a 
course of training using an aircraft simulator or other training 
device, each pilot must successfully complete--
    (1) Training and practice in the simulator or training device in at 
least the maneuvers and procedures in this subpart that are capable of 
being performed in the aircraft simulator or training device; and
    (2) A flight check in the aircraft or a check in the simulator or 
training device to the level of proficiency of a pilot in command or 
second in command, as applicable, in at least the maneuvers and 
procedures that are capable of being performed in an aircraft simulator 
or training device.


Sec. 91.1105  Flight attendants: Initial and transition ground 
training.

    Initial and transition ground training for flight attendants must 
include instruction in at least the following--
    (a) General subjects--
    (1) The authority of the pilot in command; and
    (2) Passenger handling, including procedures to be followed in 
handling deranged persons or other persons whose conduct might 
jeopardize safety.
    (b) For each aircraft type--
    (1) A general description of the aircraft emphasizing physical 
characteristics that may have a bearing on ditching, evacuation, and 
inflight emergency procedures and on other related duties;
    (2) The use of both the public address system and the means of 
communicating with other flight crewmembers, including emergency means 
in the case of attempted hijacking or other unusual situations; and
    (3) Proper use of electrical galley equipment and the controls for 
cabin heat and ventilation.


Sec. 91.1107  Recurrent training.

    (a) Each program manager must ensure that each crewmember receives 
recurrent training and is adequately trained and currently proficient 
for the type aircraft and crewmember position involved.
    (b) Recurrent ground training for crewmembers must include at least 
the following:
    (1) A quiz or other review to determine the crewmember's knowledge 
of the aircraft and crewmember position involved.
    (2) Instruction as necessary in the subjects required for initial 
ground training by this subpart, as appropriate, including low-altitude 
windshear training and training on operating during ground icing 
conditions, as prescribed in Sec. 91.1097 and described in 
Sec. 91.1101, and emergency training.
    (c) Recurrent flight training for pilots must include, at least, 
flight training in the maneuvers or procedures in this subpart, except 
that satisfactory completion of the check required by Sec. 91.1065 
within the preceding 12 calendar months may be substituted for 
recurrent flight training.


Sec. 91.1109  Aircraft maintenance: Inspection program.

    Each operator or program manager of a program aircraft must 
establish an aircraft inspection program and ensure the aircraft is 
inspected in accordance with that inspection program.
    (a) The inspection program must be in writing and include at least 
the following information:
    (1) Instructions and procedures for the conduct of inspections for 
the particular make and model aircraft, including necessary tests and 
checks. The instructions and procedures must set forth in detail the 
parts and areas of the airframe, engines, propellers, rotors, and 
appliances, including survival and emergency equipment required to be 
inspected.
    (2) A schedule for performing the inspections that must be 
performed under the inspection program expressed in terms of the time 
in service, calendar time, number of system operations, or any 
combination thereof.
    (3) The name and address of the person responsible for scheduling 
the inspections required by the inspection program. A copy of the 
inspection program must be made available to the person performing 
inspections on the aircraft and, upon request, to the Administrator.
    (b) Each person desiring to establish or change an approved 
inspection program under this section must submit the inspection 
program for approval to the local FAA Flight Standards district office 
having jurisdiction over the area in which the aircraft is based. The 
inspection program must be derived from one of the following programs:
    (1) An inspection program currently recommended by the manufacturer 
of the aircraft, aircraft engines, propellers, appliances, and survival 
and emergency equipment;
    (2) An inspection program that is part of a continuous 
airworthiness maintenance program currently in use by a person holding 
an air carrier or operating certificate issued under part 119 of this 
chapter and operating that make and model aircraft under part 121 or 
135 of this chapter;
    (3) An aircraft inspection program approved under Sec. 135.419 of 
this chapter and currently in use under part 135 of this chapter by a 
person holding a certificate issued under part 119 of this chapter; or
    (4) An aircraft inspection program approved under Sec. 125.247 of 
this chapter and currently in use under part 125 of this chapter by a 
person holding a certificate issued under part 125 of this chapter.
    (c) The Administrator may require revision of the inspection 
program approved under this section in accordance with the provisions 
of Sec. 91.415.


Sec. 91.1111  Maintenance training.

    The program manager shall ensure that all personnel who are 
employed by the program manager or fractional owner and responsible for 
maintenance related to program aircraft undergo appropriate initial and 
annual recurrent training and are competent to perform those duties.


Sec. 91.1113  Maintenance recordkeeping.

    Each fractional ownership program manager shall keep (using the 
system specified in the manual required in Sec. 91.1025) the records 
specified in Sec. 91.417(a) for the periods specified in 
Sec. 91.417(b).


Sec. 91.1115  Minimum equipment lists and letters of authorization.

    Any Minimum Equipment Lists, Letters of Authorization, Dispatch 
Deviation Guides, Deferred Discrepancy Lists or any other approvals 
covering the program aircraft will be issued to,

[[Page 37558]]

and in the sole name of, the program manager on behalf of the 
fractional owners collectively. No Minimum Equipment Lists, Letters of 
Authorization, Dispatch Deviation Guides, and Deferred Discrepancy 
Lists shall be affected by any change in ownership of a program 
aircraft, as long as the aircraft remains a program aircraft in the 
program identified on the respective approval.

PART 119--CERTIFICATION: AIR CARRIERS AND COMMERCIAL OPERATORS

    11. The authority citation for part 119 continues to read as 
follows:

    Authority: 49 U.S.C. 106(g), 1153, 40101, 40102, 40103, 40113, 
44105, 44106, 44111, 44701-44717, 44722, 44901, 44903, 44904, 44906, 
44912, 44914, 44936, 44938, 46103, 46105.

Subpart A--General

    12. Amend Sec. 119.1 by revising paragraph (d) to read as follows:


Sec. 119.1  Applicability.

* * * * *
    (d) This part does not govern operations conducted under part 91, 
subpart K (when common carriage is not involved) nor does it govern 
operations conducted under part 129, 133, 137, or 139 of this chapter.
* * * * *

PART 125--CERTIFICATION AND OPERATIONS: AIRPLANES HAVING A SEATING 
CAPACITY OF 20 OR MORE PASSENGERS OR A MAXIMUM PAYLOAD CAPACITY OF 
6,000 POUNDS OR MORE

    13. The authority citation for part 125 continues to read as 
follows:

    Authority: 49 U.S.C. 106(g), 40113, 44701-44702, 44705, 44710-
44711, 44713, 44716-44717, 44722.

Subpart A--General

    14. Amend Sec. 125.1 by revising paragraphs (b)(4) and (5) and by 
adding paragraphs (b)(6) and (b)(7) as follows:


Sec. 125.1  Applicability.

* * * * *
    (b) * * *
    (4) They are being operated under part 91 by an operator 
certificated to operate those airplanes under the rules of parts 121, 
135, or 137 of this chapter, they are being operated under the 
applicable rules of part 121 or part 135 of this chapter by an 
applicant for a certificate under part 119 of this chapter or they are 
being operated by a foreign air carrier or a foreign person engaged in 
common carriage solely outside the United States under part 91 of this 
chapter;
    (5) They are being operated under a deviation authority issued 
under Sec. 125.3 of this chapter;
    (6) They are being operated under part 91, subpart K by a 
fractional owner as defined in Sec. 91.1001; or
    (7) They are being operated by a fractional ownership program 
manager as defined in Sec. 91.1001, for training, ferrying, 
positioning, maintenance, or demonstration purposes under part 91 and 
without carrying passengers or cargo for compensation or hire except as 
permitted for demonstration flights under Sec. 91.501(b)(3).
* * * * *

PART 135--OPERATING REQUIREMENTS: COMMUTER AND ON-DEMAND OPERATIONS

    15. The authority citation for part 135 continues to read as 
follows:

    Authority: 49 U.S.C. 106(g), 44113, 44701-44702, 44705, 44709, 
44711-44713, 44715-44717, 44722.

Subpart A--General

    16. Amend Sec. 135.1 by adding paragraph (b) to read as follows:


Sec. 135.1  Applicability.

* * * * *
    (b) For the purpose of Secs. 135.23, 135.225 and 135.385, eligible 
on-demand operator means an on-demand operator that meets the flight 
crew experience, pilot operating limitations and pairing requirements 
of Secs. 91.1053 and 91.1055.
    17. Amend Sec. 135.21 by revising paragraphs (f) and (g) and adding 
paragraph (h) to read as follows:


Sec. 135.21  Manual requirements.

* * * * *
    (f) Except as provided in paragraph (h) of this section, each 
certificate holder shall carry appropriate parts of the manual on each 
aircraft when away from the principal operations base. The appropriate 
parts must be available for use by ground or flight personnel.
    (g) For the purpose of complying with paragraph (d) of this 
section, a certificate holder may furnish the persons listed therein 
with all or part of its manual in printed form or other form, 
acceptable to the Administrator, that is retrievable in the English 
language. If the certificate holder furnishes all or part of the manual 
in other than printed form, it shall ensure there is a compatible 
reading device available to those persons that provides a legible image 
of the information and instructions, or a system that is able to 
retrieve the information and instructions in the English language.
    (h) If a certificate holder conducts aircraft inspections or 
maintenance at specified stations where it keeps the approved 
inspection program manual, it is not required to carry the manual 
aboard the aircraft en route to those stations.
    18. Amend Sec. 135.23 by revising paragraph (r) and adding 
paragraph (s) to read as follows:


Sec. 135.23  Manual contents.

* * * * *
    (r) If required by Sec. 135.385, an approved Destination Airport 
Analysis establishing procedures for establishing runway safety margins 
at destination airports, taking into account the following factors as 
supported by published aircraft performance data supplied by the 
aircraft manufacturer for the appropriate runway conditions--
    (1) Pilot qualifications and experience;
    (2) Aircraft performance data to include normal, abnormal and 
emergency procedures as supplied by the aircraft manufacturer;
    (3) Airport facilities and topography;
    (4) Runway conditions (including contamination);
    (5) Airport or area weather reporting;
    (6) Appropriate additional runway safety margins, if required; and
    (7) Other criteria affecting aircraft performance.
    (s) Other procedures and policy instructions regarding the 
certificate holder's operations issued by the certificate holder.

Subpart C--Aircraft and Equipment

    19. Revise Sec. 135.145 to read as follows:


Sec. 135.145  Aircraft proving tests.

    (a) No certificate holder may operate an aircraft for which two 
pilots are required by this chapter for operations under VFR, if it has 
not previously proved such an aircraft in operations under this part in 
at least 25 hours of proving tests acceptable to the Administrator 
including--
    (1) Five hours of night time, if night flights are to be 
authorized;
    (2) Five instrument approach procedures under simulated or actual 
conditions, if IFR flights are to be authorized; and
    (3) Entry into a representative number of enroute airports as 
determined by the Administrator.
    (b) No certificate holder may operate a turbojet airplane if it has 
not previously proved the same or another

[[Page 37559]]

turbojet airplane in operations under this part in at least 25 hours of 
proving tests acceptable to the Administrator including--
    (1) Five hours of night time, if night flights are to be 
authorized;
    (2) Five instrument approach procedures under simulated or actual 
conditions, if IFR flights are to be authorized; and
    (3) Entry into a representative number of enroute airports as 
determined by the Administrator.
    (c) The Administrator may authorize deviations from this section if 
the Administrator finds that special circumstances make full compliance 
with this section unnecessary.
    20. Amend Sec. 135.167 by revising paragraph (a) introductory text 
and adding paragraph (d) to read as follows:


Sec. 135.167  Emergency equipment: Extended overwater operations.

    (a) Except as provided in paragraph (d) of this section, no person 
may operate an aircraft in extended overwater operations unless it 
carries, installed in conspicuously marked locations easily accessible 
to the occupants if a ditching occurs, the following equipment:
* * * * *
    (d) For a pressurized turbine-powered aircraft operating at an 
altitude greater than 25,000 feet, a person may elect not to comply 
with the equipment requirements in Sec. 135.167(a)(2), (b) and (c) of 
this part provided that the flight does not proceed more than 30 
minutes flying time or 100 nautical miles from the nearest shore, 
whichever is greater.

Subpart D--VFR/IFR Operating Limitations and Weather Requirements

    21. Amend Sec. 135.225 by revising paragraph (a) introductory text, 
redesignating paragraphs (b) through (h) as paragraphs (c) through (i), 
adding new paragraph (b), and revising redesignated paragraphs (d) and 
(h) to read as follows:


Sec. 135.225  IFR: Takeoff, approach and landing minimums.

    (a) Except to the extent permitted by paragraph (b) of this 
section, no pilot may begin an instrument approach procedure to an 
airport unless--
* * * * *
    (b) A pilot employed by an eligible on-demand operator may begin an 
instrument approach procedure to an airport if--
    (1) Either that airport or the alternate airport has a weather 
reporting facility operated by the U.S. National Weather Service, a 
source approved by the U.S. National Weather Service, or a source 
approved by the Administrator; and
    (2) The latest weather report issued by the weather reporting 
facility includes a current local altimeter setting for the destination 
airport. If no local altimeter setting for the destination airport is 
available, the pilot may use the current altimeter setting provided by 
the facility designated on the approach chart for the destination 
airport.
    (3) For flight planning purposes, if the destination airport does 
not have a weather reporting facility described in paragraph (b)(1) of 
this section, the pilot must designate as an alternate an airport that 
has a weather reporting facility meeting that criteria.
* * * * *
    (d) If a pilot has begun the final approach segment of an 
instrument approach to an airport under paragraph (c) of this section 
and a later weather report indicating below minimum conditions is 
received after the aircraft is--
* * * * *
    (h) Except as provided in paragraph (i) of this section, if takeoff 
minimums are not prescribed in part 97 of this chapter for the takeoff 
airport, no pilot may takeoff an aircraft under IFR when the weather 
conditions reported by the facility described in paragraph (a)(1) of 
this section are less than that prescribed in part 91 of this chapter 
or in the certificate holder's operations specifications.
* * * * *

Subpart E--Flight Crewmember Requirements

    22. Amend Sec. 135.247 by adding paragraph (a)(3) to read as 
follows:


Sec. 135.247  Pilot qualifications: Recent experience.

    (a) * * *
    (3) Paragraph (a)(2) of this section does not apply to a pilot in 
command of a turbine-powered airplane that requires more than one pilot 
crewmember, provided that pilot has complied with the requirements of 
paragraph (a)(3)(i) or (ii) of this section:
    (i) The pilot in command must hold at least a commercial pilot 
certificate with the appropriate category, class, and type rating for 
each airplane that pilot seeks to operate under this alternative, and:
    (A) That pilot must have logged at least 1,500 hours of 
aeronautical experience as a pilot;
    (B) In each airplane the pilot seeks to operate under this 
alternative, that pilot must have accomplished and logged the daytime 
takeoff and landing recent flight experience of paragraph (a) of this 
section, as the sole manipulator of the flight controls;
    (C) Within the preceding 90 days prior to the operation of that 
airplane, the pilot must have accomplished and logged at least 15 hours 
of flight time in the type of airplane that the pilot seeks to operate 
under this alternative; and
    (D) That pilot has accomplished and logged at least 3 takeoffs and 
3 landings to a full stop, as the sole manipulator of the flight 
controls, in a turbine-powered airplane that requires more than one 
pilot crewmember. The pilot must have performed the takeoffs and 
landings during the period beginning 1 hour after sunset and ending 1 
hour before sunrise within the preceding 6 calendar months prior to the 
month of the flight.
    (ii) The pilot in command must hold at least a commercial pilot 
certificate with the appropriate category, class, and type rating for 
each airplane that pilot seeks to operate under this alternative, and:
    (A) That pilot must have logged at least 1,500 hours of 
aeronautical experience as a pilot;
    (B) In each airplane the pilot seeks to operate under this 
alternative, that pilot must have accomplished and logged the daytime 
takeoff and landing recent flight experience of paragraph (a) of this 
section, as the sole manipulator of the flight controls;
    (C) Within the preceding 90 days prior to the operation of that 
airplane, the pilot must have accomplished and logged at least 15 hours 
of flight time in the type of airplane that the pilot seeks to operate 
under this alternative; and
    (D) Within the preceding 12 calendar months prior to the month of 
the flight, the pilot must have completed a training program that is 
approved under part 142 of this chapter. The approved training program 
must have required and the pilot must have performed, at least 6 
takeoffs and 6 landings to a full stop as the sole manipulator of the 
controls in a flight simulator that is representative of a turbine-
powered airplane that requires more than one pilot crewmember. The 
flight simulator's visual system must have been adjusted to represent 
the period beginning 1 hour after sunset and ending 1 hour before 
sunrise.
    23. Amend Sec. 135.251 by revising paragraph (b) and adding 
paragraphs (c) and (d) to read as follows:


Sec. 135.251  Testing for prohibited drugs.

* * * * *
    (b) Except as provided in paragraph (c) of this section, no 
certificate holder or operator may use any contractor to perform a 
function listed in appendix I

[[Page 37560]]

to part 121 of this chapter unless that contractor tests each employee 
performing such a function for the certificate holder or operator in 
accordance with that appendix.
    (c) If a certificate holder conducts an on-demand operation into an 
airport at which no maintenance providers are available that are 
subject to the requirements of appendix I to part 121 and emergency 
maintenance is required, the certificate holder may use persons not 
meeting the requirements of paragraph (b) of this section to provide 
such emergency maintenance. A certificate holder shall give written 
notification of the emergency maintenance to the Drug Abatement Program 
Division, AAM-800, 800 Independence Avenue, Washington, DC, 20591, 
within 10 days after being provided same in accordance with this 
paragraph. A certificate holder shall retain copies of all such written 
notifications for two years.
    (d) For purposes of this section, emergency maintenance means 
maintenance which--
    (1) Is not scheduled and
    (2) Is made necessary by an aircraft condition not discovered prior 
to the departure for that location.
    24. Amend Sec. 135.255 by revising paragraph (b) and adding 
paragraphs (c) and (d) to read as follows:


Sec. 135.255  Testing for alcohol.

* * * * *
    (b) Except as provided in paragraph (c) of this section, no 
certificate holder or operator shall use any person who meets the 
definition of ``covered employee'' in appendix J to part 121 to perform 
a safety-sensitive function listed in that appendix unless such person 
is subject to testing for alcohol misuse in accordance with the 
provisions of appendix J.
    (c) If a certificate holder conducts an on-demand operation into an 
airport at which no maintenance providers are available that are 
subject to the requirements of appendix J to part 121 and emergency 
maintenance is required, the certificate holder may use persons not 
meeting the requirements of paragraph (b) of this section to provide 
such emergency maintenance. A certificate holder shall give written 
notification of the emergency maintenance to the Drug Abatement Program 
Division, AAM-800, 800 Independence Avenue, Washington, DC, 20591, 
within 10 days after being provided same in accordance with this 
paragraph. A certificate holder shall retain copies of all such written 
notifications for two years.
    (d) For purposes of this section, emergency maintenance means 
maintenance which--
    (1) Is not scheduled, and
    (2) Is made necessary by an aircraft condition not discovered prior 
to the departure for that location.

Subpart G--Crewmember Testing Requirements

    25. Revise Sec. 135.291 paragraph (b) to read as follows:
* * * * *
    (b) Permits training center personnel authorized under part 142 of 
this chapter who meet the requirements of sections 135.337 and 135.339 
to conduct training, testing, and checking under contract or other 
arrangement to those persons subject to the requirements of this 
subpart.

Subpart H--Training

    26. Amend Sec. 135.321 by revising paragraph (b)(7) to read as 
follows:


Sec. 135.321  Applicability and terms used.

* * * * *
    (b) * * *
    (7) Training center. An organization governed by the applicable 
requirements of part 142 of this chapter that conducts training, 
testing, and checking under contract or other arrangement to 
certificate holders subject to the requirements of this part.
* * * * *
    27. Amend Sec. 135.324 by revising paragraphs (a) and (b) 
introductory to read as follows:


Sec. 135.324  Training program: Special rules.

    (a) Other than the certificate holder, only another certificate 
holder certificated under this part or a training center certificated 
under part 142 of this chapter is eligible under this subpart to 
conduct training, testing, and checking under contract or other 
arrangement to those persons subject to the requirements of this 
subpart.
    (b) A certificate holder may contract with, or otherwise arrange to 
use the services of, a training center certificated under part 142 of 
this chapter to conduct training, testing, and checking required by 
this part only if the training center--
* * * * *

Subpart I--Airplane Performance Operating Limitations

    28. Amend Sec. 135.385 by revising paragraph (b) and adding 
paragraphs (f) and (g) to read as follows:


Sec. 135.385  Large transport category airplanes: Turbine engine 
powered: Landing limitations: Destination airports.

* * * * *
    (b) Except as provided in paragraph (c), (d), (e), (f), or (g) of 
this section, no person operating a turbine engine powered large 
transport category airplane may take off that airplane unless its 
weight on arrival, allowing for normal consumption of fuel and oil in 
flight (in accordance with the landing distance in the Airplane Flight 
Manual for the elevation of the destination airport and the wind 
conditions anticipated there at the time of landing), would allow a 
full stop landing at the intended destination airport within 60 percent 
of the effective length of each runway described below from a point 50 
feet above the intersection of the obstruction clearance plane and the 
runway. For the purpose of determining the allowable landing weight at 
the destination airport the following is assumed:
* * * * *
    (f) Eligible on-demand operators flying a turbine engine powered 
large transport category airplane on an on-demand flight may not take 
off that airplane unless, on arrival at its destination or alternate 
airport, the airplane is able to come to a full stop landing within 85 
percent of the effective length of the runway, from a point 50 feet 
above the intersection of the obstruction plane and the runway, 
considering the runway elevation, airplane weight, ambient temperature 
and wind conditions anticipated upon arrival at that airport. The 
computation of landing weight and stopping distance must be done in 
accordance with the Airplane Flight Manual for that airplane, assuming:
    (1) The airplane is landed on the most favorable runway and in the 
most favorable direction, in still air.
    (2) The airplane is landed on the most suitable runway considering 
the probable wind velocity and direction and the ground handling 
characteristics of the airplane, and considering other conditions such 
as landing aids and terrain.
    (g) Eligible on-demand operators flying a turbine engine powered 
large transport category airplane on an on-demand flight may take off 
that airplane at a weight in excess of that allowed by the runway 
margin in paragraph (f) of this section if such operation is permitted 
by an approved Destination Airport Analysis in that person's operations 
manual and an alternate airport meeting the criteria of Sec. 135.387(b) 
is selected.

[[Page 37561]]

    29. Revise Sec. 135.387 to read as follows:


Sec. 135.387  Large transport category airplanes: Turbine engine 
powered: Landing limitations: Alternate airports.

    (a) No person may select an airport as an alternate airport for a 
turbine engine powered large transport category airplane unless (based 
on the assumptions in Sec. 135.385(b)) that airplane, at the weight 
anticipated at the time of arrival, can be brought to a full stop 
landing within 70 percent of the effective length of the runway for 
turbo-propeller-powered airplanes and 60 percent of the effective 
length of the runway for turbojet airplanes, from a point 50 feet above 
the intersection of the obstruction clearance plane and the runway.
    (b) Eligible on-demand operators may select an airport as an 
alternate airport for a turbine engine powered large transport category 
airplane if (based on the assumptions in Sec. 135.385(f)) that 
airplane, at the weight anticipated at the time of arrival, can be 
brought to a full stop landing within 85 percent of the effective 
length of the runway from a point 50 feet above the intersection of the 
obstruction clearance plane and the runway.

PART 142--TRAINING CENTERS

    The authority citation for part 142 continues to read as follows:

    Authority: 49 U.S.C. 106(g), 40113, 40119, 44101, 44701-44703, 
44705, 44707, 44709-44711, 45102-45103, 45301-45302.

Subpart A--General

    30. Amend Sec. 142.1 by revising paragraph (a), republishing 
paragraph (b) introductory text, revising paragraphs (b)(1), (b)(4) and 
(b)(5)and adding paragraph (b)(6) asset forth below, and by removing 
paragraph (c):


Sec. 142.1  Applicability.

    (a) This subpart prescribes the requirements governing the 
certification and operation of aviation training centers. Except as 
provided in paragraph (b) of this section, this part provides an 
alternative means to accomplish training required by parts 61, 63, 91, 
121, 125, 127, 135, or 137 of this chapter.
    (b) Certification under this part is not required for training that 
is--
    (1) Approved under the provisions of parts 63, 91, 121, 127, 135, 
and 137;
* * * * *
    (4) Conducted by a part 121 certificate holder for another part 121 
certificate holder;
    (5) Conducted by a part 135 certificate holder for another part 135 
certificate holder; or
    (6) Conducted by a part 91 fractional ownership program manager for 
another part 91 fractional ownership program manager.

    Issued in Washington, DC, on June 28, 2001.
Nicholas A. Sabatini,
Director, Office of Flight Standards.
[FR Doc. 01-17503 Filed 7-11-01; 2:14 pm]
BILLING CODE 4910-13-P