775 

Federal Aviation Administration, DOT 

§ 91.1005 

and other authorizations and approv-
als. 

(9) A 

fractional ownership program 

manager or program manager means the 
entity that offers fractional ownership 
program management services to frac-
tional owners, and is designated in the 
multi-year program agreements ref-
erenced in paragraph (b)(5)(vi) 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 af-
filiate of the owner’s program man-
ager, the references in this subpart to 
the flight-related responsibilities of 
the program manager apply, with re-
spect to that particular flight, to the 
affiliate of the owner’s program man-
ager rather than to the owner’s pro-
gram manager. 

(10) 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. 

(c) The rules in this subpart that 

refer to a fractional owner or a frac-
tional ownership program manager 
also apply to any person who engages 
in an operation governed by this sub-
part without the management speci-
fications required by this subpart. 

[Docket No. FAA–2001–10047, 68 FR 54561, 
Sept. 17, 2003, as amended by Docket No. 
FAA–2022–1355, Amdt. No. 91–366, 87 FR 75846, 
Dec. 9, 2022] 

§ 91.1002

Compliance date. 

No person that conducted flights be-

fore November 17, 2003 under a program 
that meets the definition of fractional 
ownership program in § 91.1001 may 
conduct such flights after February 17, 
2005 unless it has obtained manage-
ment specifications under this subpart. 

[Doc. No. FAA–2001–10047, 68 FR 54561, Sept. 
17, 2003; 69 FR 74413, Dec. 14, 2004] 

§ 91.1003

Management contract be-

tween owner and program man-
ager. 

Each owner must 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 and to audit, or have a designee 
of the owner inspect and audit, the 
records of the program manager per-
taining to the operational safety of the 
program and those records required to 
show compliance with the management 
specifications and all applicable regu-
lations. These records include, but are 
not limited to, the management speci-
fications, authorizations, approvals, 
manuals, log books, and maintenance 
records maintained by the program 
manager. 

(c) Designates the program manager 

as the owner’s agent to receive service 
of notices pertaining to the program 
that the FAA seeks to provide to own-
ers and authorizes the FAA to send 
such notices to the program manager 
in its capacity as the agent of the 
owner for such service. 

(d) Acknowledges the FAA’s right to 

contact the owner directly if the Ad-
ministrator determines that direct 
contact is necessary. 

§ 91.1005

Prohibitions and limitations. 

(a) Except as provided in § 91.321 or 

§ 91.501, no owner may carry persons or 
property for compensation or hire on a 
program flight. 

(b) During the term of the multi-year 

program agreements under which a 
fractional owner has obtained a min-
imum fractional ownership interest in 
a program aircraft, the flight hours 
used during that term by the owner on 
program aircraft must not exceed the 
total hours associated with the frac-
tional owner’s share of ownership. 

(c) No person may sell or lease an air-

craft interest in a fractional ownership 
program that is smaller than that pre-
scribed in the definition of ‘‘minimum 
fractional ownership interest’’ in 
§ 91.1001(b)(10) unless flights associated 
with that interest are operated under 
part 121 or 135 of this chapter and are 

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