title-14-part-91-sec91-1005

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
(

⁄

) 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 (

⁄

) of at least one rotorcraft

program aircraft.

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.

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.

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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14 CFR Ch. I (1–1–24 Edition)

§ 91.1007

conducted by an air carrier or commer-
cial operator certificated under part
119 of this chapter.

§ 91.1007

Flights conducted under part

121 or part 135 of this chapter.

(a) Except as provided in § 91.501(b),

when a nonprogram aircraft is used to
substitute for a program flight, the
flight must be operated in compliance
with part 121 or part 135 of this chap-
ter, as applicable.

(b) A program manager who holds a

certificate under part 119 of this chap-
ter may conduct a flight for the use of
a fractional owner under part 121 or
part 135 of this chapter if the aircraft is
listed on that certificate holder’s oper-
ations specifications for part 121 or
part 135, as applicable.

formed when a flight is being con-
ducted as a program flight or is being
conducted under part 121 or part 135 of
this chapter.

PERATIONAL

ONTROL

§ 91.1009

Clarification of operational

control.

(a) An 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 §§ 91.1003
through 91.1013;

(2) Has directed that a program air-

craft carry passengers or property des-
ignated by that owner; and

(3) The aircraft is carrying those pas-

sengers or property.

(b) An owner is not in operational

control of a flight in the following cir-
cumstances:

(1) A program aircraft is used for a

flight for administrative purposes such
as demonstration, positioning,
ferrying, maintenance, or crew train-
ing, and no passengers or property des-
ignated by such owner are being car-
ried; or

(2) The aircraft being used for the

flight is being operated under part 121
or 135 of this chapter.

§ 91.1011

Operational control respon-

sibilities and delegation.

(a) Each owner in operational control

of a program flight is ultimately re-
sponsible for safe operations and for
complying with all applicable require-

ments 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 ex-
pertise and program management serv-
ices. When the owner delegates per-
formance of tasks to the program man-
ager or relies on the program man-
ager’s expertise, the owner and the pro-
gram manager are jointly and individ-
ually responsible for compliance.

(b) The management specifications,

authorizations, and approvals required
by this subpart are issued to, and in
the sole name of, the program manager
on behalf of the fractional owners col-
lectively. The management specifica-
tions, authorizations, and approvals
will not be affected by any change in
ownership of a program aircraft, as
long as the aircraft remains a program
aircraft in the identified program.

§ 91.1013

Operational control briefing

and acknowledgment.

(a) Upon the signing of an initial pro-

gram management services contract,
or a renewal or extension of a program
management services contract, the
program manager must brief the frac-
tional owner on the owner’s oper-
ational control responsibilities, and
the owner must review and sign an ac-
knowledgment of these operational
control responsibilities. The acknowl-
edgment must be included with the
program management services con-
tract. The acknowledgment must de-
fine when a fractional owner is in oper-
ational control and the owner’s respon-
sibilities and liabilities under the pro-
gram. These include:

(1) Responsibility for compliance

with the management specifications
and all applicable regulations.

(2) Enforcement actions for any non-

compliance.

(3) Liability risk in the event of a

flight-related occurrence that causes
personal injury or property damage.

(b) The fractional owner’s signature

on the acknowledgment will serve as
the owner’s affirmation that the owner
has read, understands, and accepts the