Fractional Ownership Rules Set
It's been 18 years since Executive Jet revolutionized business-jet ownership and now the FAA has caught up to the fractional ownership industry with a set of regulations. The agency published a final rule for the Regulation of Fractional Aircraft Ownership Programs and On-Demand Operations last Wednesday in the Federal Register. The new rule recognizes the enviable safety and maintenance record that has evolved in the fractional ownership industry. "By this rulemaking, the FAA establishes safety standards to maintain the safety record of current fractional ownership programs and to ensure that new fractional ownership programs will also meet a high level of safety," the rule reads. The rule, which is section K of Part 91, codifies the basic structure of the industry as it has evolved by establishing criteria for fractional ownership companies and laying out the rights and responsibilities of the owners and the companies. It also establishes safety standards, including maintenance, training and crew flight and duty requirements. The rule also allows the application of fractional ownership standards to Part 135 on-demand operations under specific circumstances. The rule has been in the works for about five years and more than 200 comments were received on it. About 60 of those, however, dealt with noise and environmental concerns at Santa Monica Airport.