[Federal Register Volume 80, Number 135 (Wednesday, July 15, 2015)]
[Proposed Rules]
[Pages 41447-41448]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-17324]


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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Chapter I

[Docket No. FAA-2015-2022]


Petition of the Aircraft Owner and Pilots Association (AOPA) To 
Amend FAA Policy Concerning Flying Club Operations at Federally-
Obligated Airports.

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Notice of petition; request for comments.

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SUMMARY: This notice requests comments on a petition by the Aircraft 
Owner and Pilots Association (AOPA) to revise certain policies 
concerning flying clubs in the Federal Aviation Administration (FAA) 
Order 5190.6B, FAA Airport Compliance Manual. As part of its effort to 
promote flying clubs, AOPA has requested certain revisions to FAA 
guidance intended to lower barriers for new flying clubs. These 
revisions allow flight instructors and mechanics who are club members 
to receive monetary compensation for services provided to club members.
    On April 3, 2015, the AOPA Senior Vice President for Government 
Affairs & Advocacy, James W. Coon, wrote to Mr. Randall Fiertz, FAA's 
Director of the Office of Airport Compliance and Management Analysis 
proposing revision to FAA guidance regarding compensation for flight 
instructors and persons maintaining aircraft within the context of 
flying club operations. AOPA seeks ``to help current flying clubs and 
airport sponsors comply with the FAA guidance outlined in 5190.6B, and 
to provide future flying clubs the opportunity to strengthen and unify 
general aviation pilots.'' AOPA states that its goal is ``to provide 
guidance that is attainable and ensures educated compliance from all 
airport users,'' and thus asks for ``updated guidance regarding 
compensation for flight instructors and maintainers'' because ``flight 
instructors and aviation mechanics are valuable assets to the aviation 
industry, and should be granted the privilege of fair compensation for 
their efforts on a local level.''

DATES: Send your comments on or before August 14, 2015. The FAA will 
consider comments on the petition. Any revisions resulting from the 
original petition or comments received will be adopted as of the date 
of a subsequent publication in the Federal Register.

ADDRESSES: You may send comments [identified by Docket Number FAA-2015-
2022] using any of the following methods:
     Government-wide rulemaking Web site: Go to http://www.regulations.gov and follow the instructions for sending your 
comments electronically.
     Mail: Docket Operations, U.S. Department of 
Transportation, West Building, Ground Floor, Room W12-140, Routing 
Symbol M-30, 1200 New Jersey Avenue SE., Washington, DC 20590.
     Fax: 1-202-493-2251.
     Hand Delivery: To Docket Operations, Room W12-140 on the 
ground floor of the West Building, 1200 New Jersey Avenue SE., 
Washington, DC 20590, between 9 a.m. and 5 p.m., Monday through Friday, 
except Federal holidays.
    For more information on the notice and comment process, see the 
SUPPLEMENTARY INFORMATION section of this document.
    Docket: To read background documents or comments received, go to 
http://www.regulations.gov at any time or to Room W12-140 on the ground 
floor of the West Building, 1200 New Jersey Avenue SE., Washington, DC, 
between 9 a.m. and 5 p.m., Monday through Friday, except Federal 
holidays.
    Privacy: We will post all comments we receive, without change, to 
http://www.regulations.gov, including any personal information you 
provide. Using the search function of our docket Web site, anyone can 
find and read the comments received into any of our dockets, including 
the name of the individual sending the comment (or signing the comment 
for an association, business, labor union, etc.). You may review DOT's 
complete Privacy Act Statement in the Federal Register published on 
April 11, 2000 (65 FR 19477-78).
    Availability of Documents: You can get an electronic copy of this 
Policy and all other documents in this docket using the Internet by:
    (1) Searching the Federal eRulemaking portal (http://www.faa.gov/regulations/search);
    (2) Visiting FAA's Regulations and Policies Web page at (http://www.faa.gov/regulations_policies; or
    (3) Accessing the Government Printing Office's Web page at (http://www.gpoaccess.gov/index.html.
    You can also get a copy by sending a request to the Federal 
Aviation Administration, Office of Airport Compliance and Management 
Analysis, 800 Independence Avenue SW., Washington, DC 20591, or by 
calling (202) 267-3085. Make sure to identify the docket number, notice 
number, or amendment number of this proceeding.

FOR FURTHER INFORMATION CONTACT: Miguel Vasconcelos, Airport Compliance 
Division, ACO-100, Federal Aviation Administration, 800 Independence 
Avenue SW., Washington, DC 20591, telephone (202) 267-3085; facsimile: 
(202) 267-4620.

SUPPLEMENTARY INFORMATION: FAA Order 5190.6B, FAA Airport Compliance 
Manual (Order), published on September 30, 2009 defines flying clubs 
as: ``a nonprofit or not-for-profit entity (e.g., corporation, 
association, or partnership) organized for the express purpose of 
providing its members with aircraft for their personal use and

[[Page 41448]]

enjoyment only.'' The Order states that ``the ownership of the club 
aircraft must be vested in the name of the flying club or owned by all 
its members. The property rights of the members of the club shall be 
equal; no part of the net earnings of the club will benefit any one 
individual in any form, including salaries, bonuses, etc. The flying 
club may not derive greater revenue from the use of its aircraft than 
the amount needed for the operation, maintenance and replacement of its 
aircraft.'' The Order also notes that ``flying clubs may not offer or 
conduct . . . aircraft rental operations. They may conduct aircraft 
flight instruction for regular members only, and only members of the 
flying club may operate the aircraft.'' While members may not be 
monetarily compensated, existing policy allows flying clubs to allow 
compensation only in the form of credit against payment of dues or 
flight time.
    In addition, the Order states that ``no flying club shall permit 
its aircraft to be used for flight instruction for any person, 
including members of the club owning the aircraft, when such person 
pays or becomes obligated to pay for such instruction. An exception 
applies when the instruction is given by a lessee based on the airport 
who provides flight training and the person receiving the training is a 
member of the flying club. Flight instructors who are also club members 
may not receive payment for instruction except that they may be 
compensated by credit against payment of dues or flight time'' and that 
``any qualified mechanic who is a registered member and part owner of 
the aircraft owned and operated by a flying club may perform 
maintenance work on aircraft owned by the club. The flying club may not 
become obligated to pay for such maintenance work except that such 
mechanics may be compensated by credit against payment of dues or 
flight time.'' [See FAA Order 5190.6B, paragraphs 10.6(a), (b), and 
(c).] Flying clubs are defined in such a way as to differentiate from 
for-profit aeronautical businesses offering aeronautical services to 
general public, e.g., FBOs, flight schools and aircraft rental 
providers.
    The owner of any airport (airport sponsor) developed with Federal 
grant assistance is required to operate the airport for the use and 
benefit of the public and to make it available to all types, kinds, and 
classes of aeronautical activity on fair and reasonable terms, and 
without unjust discrimination. This includes flying clubs. Assurance 
22, Economic Nondiscrimination, of the prescribed sponsor assurances 
implements the provisions of 49 U.S.C. 47107(a)(l) through (6), and 
requires, in pertinent part, that the sponsor of a federally obligated 
airport

    ``. . . will make its airport available as an airport for public 
use on reasonable terms, and without unjust discrimination, to all 
types, kinds, and classes of aeronautical activities, including 
commercial aeronautical activities offering services to the public 
at the airport.'' Assurance 22(a)
    ``. . . may establish such fair, equal, and not unjustly 
discriminatory conditions to be met by all users of the airport as 
may be necessary for the safe and efficient operation of the 
airport.'' Assurance 22(h)

At issue is the fact that some entities operating at federally-
obligated airports identify themselves as ``flying clubs,'' while not 
meeting the definition of a ``flying club.'' Rather, they are engaged 
in providing commercial services at the airport. In some instances, 
these ``flying clubs'' present themselves to the public as alternatives 
to traditional flight schools and aircraft rental providers. Some 
publish flight training rates, including instruction fees and rental 
rates, and only charge nominal annual ``club fees.'' FAA policy 
reflects the concern that some entities claiming to be flying clubs are 
actually commercial service providers. These commercial service 
providers use the term ``flying club'' to avoid compliance with airport 
minimum standards for commercials service providers. This can result in 
unjust discrimination because legitimate service providers at the 
airport would be at an economic disadvantage in competition with the 
flying club, contrary to the federal grant assurances, specifically 
Grant Assurance 22, Economic Nondiscrimination Therefore, if proposed 
changes to the definition of a flying club and the related activities 
must be consistent with Grant Assurance 22.
    As part of its effort to promote flying clubs, AOPA has recommended 
revisions to FAA guidance. These recommendations, designed to promote 
flying clubs, include allowing flight instructors and mechanics who are 
club members to receive monetary compensation for services conducted 
for other club members or club aircraft. Specifically, AOPA proposes 
the following language for consideration in FAA flying club policies:

    AOPA Policy Proposal Item 1:
    ``No flying club shall permit its aircraft to be used for flight 
instruction for any person, including members of the club owning the 
aircraft, when such person pays or becomes obligated to pay for such 
instruction except in the following circumstances; (a) The flight 
instruction is provided to a club member by a commercial operator 
authorized by the airport sponsor to provide flight instruction on 
field. (b) The flight instruction is provided to a club member by a 
flight instructor who is also a club member that is in good standing 
according to the club bylaws. In either case, the flight instructor 
may receive monetary compensation; however the flying club is 
prohibited from holding itself out to the public as a fixed based 
operator, a specialized aviation service operation, or a flight 
school. In the case of (b) above, the Airport Sponsor has the right 
to limit flight instruction for monetary compensation but must 
permit the club to compensate club instructors with credit against 
payment of dues or flight time.''
    AOPA Policy Proposal Item 2:
    ``Any qualified mechanic who is a member of the flying club may 
perform maintenance work on aircraft owned or exclusively used by 
the flying club. The flying club may not become obligated to pay for 
such maintenance work except that such mechanics may be compensated 
not to exceed a reasonable rate for the work performed at the 
discretion of club members. The club however may not hold out to the 
public as operating as a fixed base operator, a specialized aviation 
service operation, or maintenance facility. The Airport Sponsor has 
the right to limit maintenance work for monetary compensation but 
must permit the club to compensate club mechanics with credit 
against payment of dues or flight time.''

    In brief, AOPA requests that flight instructors and mechanics who 
are club members be permitted to receive monetary compensation for 
services conducted within the club. AOPA's request also emphasizes that 
airport sponsors must [emphasis added] permit the club to compensate 
club instructors and mechanics with credit against payment of dues or 
flight time.
    AOPA-recommended revisions are available for review on the FAA 
Airports Web site, as well as in the docket locations described under 
Availability of documents in this notice.
    Request for Comments: The FAA requests comments on whether AOPA's 
recommendations can be considered consistent with the FAA's general 
policies regarding commercial aeronautical services and flying clubs on 
an airport, and if so, whether the stated agency policy on flying clubs 
should be revised to amend its definition of flying clubs. In 
particular, the FAA seeks comments from commercial service providers 
that engage in flight training and aircraft rental, from associations 
representing such service providers, and other interested parties.

    Issued in Washington, DC, on July 9, 2015.
Randall S. Fiertz,
Director, Office of Airport Compliance and Management Analysis.
[FR Doc. 2015-17324 Filed 7-14-15; 8:45 am]
 BILLING CODE P