367 

Office of the Secretary, DOT 

§ 375.37 

(b) Free transportation may be pro-

vided under this section for the fol-
lowing categories of persons and prop-
erty: 

(1) Directors, officers and employees, 

and their parents and immediate fami-
lies, of the foreign air carrier operating 
the aircraft; 

(2) Directors, officers and employees, 

and their parents and immediate fami-
lies, of an air carrier or another foreign 
air carrier traveling pursuant to a pass 
interchange arrangement; 

(3) Travel agents being transported 

for the purpose of familiarizing them-
selves with the carrier’s services, if the 
agents are under no obligation to sell 
the transporting carrier’s services; 

(4) Witnesses and attorneys attending 

any legal investigation in which any 
such foreign air carrier is involved; 

(5) Persons injured in aircraft acci-

dents and physicians and nurses at-
tending such persons; 

(6) Any persons or property with the 

object of providing relief in cases of 
general epidemic, natural disaster or 
other catastrophe; 

(7) Any person who has the duty of 

guarding foreign government officials 
travelling on official business; and 

(8) Guests of a foreign air carrier (in-

cluding members of the press) on deliv-
ery flights of newly-acquired or newly- 
renovated aircraft. 

(c) A charge reasonably related to 

the value of meals and beverages fur-
nished enroute shall not be deemed to 
constitute compensation or hire for 
purposes of this section. 

[OST Doc. No. 42547, 51 FR 7254, Mar. 3, 1986, 
as amended by Doc. No. DOT-OST-2014-0140, 
84 FR 15940, Apr. 16, 2019] 

§ 375.36

Lease of foreign civil aircraft 

without crew. 

Foreign civil aircraft that are leased 

without crew to an air carrier or cit-
izen or permanent resident of the 
United States, and used by the lessee 
in otherwise authorized air transpor-
tation or commercial air operations, 
may be operated into, out of, and with-
in the United States in accordance 
with any applicable regulations pre-
scribed by the Federal Aviation Admin-
istration. 

§ 375.37

Certain business aviation ac-

tivities using U.S.-registered foreign 
civil aircraft. 

For purposes of this section, ‘‘com-

pany’’ is defined as a person that oper-
ates civil aircraft in furtherance of a 
business other than air transportation. 
U.S.-registered foreign civil aircraft 
that are not otherwise engaged in com-
mercial air operations, or foreign air 
transportation, and which are operated 
by a company in the furtherance of a 
business other than transportation by 
air, when the carriage is within the 
scope of, and incidental to, the busi-
ness of the company (other than trans-
portation by air), may be operated to, 
from, and within the United States as 
follows: 

(a) 

Intra-company operations. A com-

pany operating a U.S.-registered for-
eign civil aircraft may conduct oper-
ations for a subsidiary or parent or a 
subsidiary of its parent on a fully-allo-
cated cost reimbursable basis; pro-
vided, that the operator of the U.S.- 
registered foreign civil aircraft must 
hold majority ownership in, be major-
ity owned by, or have a common parent 
with, the company for which it pro-
vides operations; 

(b) 

Interchange operations. A company 

may lease a U.S.-registered foreign 
civil aircraft to another company in 
exchange for equal time when needed 
on the other company’s U.S. registered 
aircraft, where no charge, assessment, 
or fee is made, except that a charge 
may be made not to exceed the dif-
ference between the cost of owning, op-
erating, and maintaining the two air-
craft; 

(c) 

Joint ownership operations. A com-

pany that jointly owns a U.S.-reg-
istered foreign civil aircraft and fur-
nishes the flight crew for that aircraft 
may collect from the other joint own-
ers of that aircraft a share of the ac-
tual costs involved in the operation of 
the aircraft; and 

(d) 

Time-sharing operations. A com-

pany may lease a U.S.-registered for-
eign civil aircraft, with crew, to an-
other company; provided, that the op-
erator may collect no charge for the 
operation of the aircraft except reim-
bursement for: 

(1) Fuel, oil, lubricants, and other ad-

ditives. 

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