We are in the process of preparing an inititial compliance statement in preparation for 135 certification, and we have come across the first of what I am sure will be many interesting FAR questions:
If a part 135 On-Demand Air Carrier (i.e. authorized to conduct common carriage) conducts an “owner flight”…what I mean here is that the flight is in an aircraft that is not owned by the Air Carrier, but the only passengers carried onboard this flight are the aircraft owner and the owner’s friends and family (i.e. there was no “holding out” to the general public)…and the aircraft owner pays the Air Carrier for conducting this flight (i.e. the flight is for compensation to the Air Carrier)…
Would this not constitute a “Noncommon carriage” operation as defined by FAR 119.3?? (Note: AC120-12a uses the term “Private Carriage”)
If you agree with me that the above described operation is “Noncommon carriage” or (if you prefer, “Private Carriage”)…then…
According to FAR 119.5(h)(second sentence)…would it not be ILLEGAL for this part 135 Air Carrier to conduct this type of operation???
No, the aircraft in question here are a King Air 200 and a Hawker 400 (Beechjet). Neither aircraft is owned by the part 135 Air Carrier; both aircraft are leased to the part 135 Air Carrier.
119.5 (h) applies to other than owner noncommon/private carriage.
Owner carriage may typically be conducted by the lessee under Part 91 operating rules as defined per an executed Management/Lease Agreement and within the guise of Opspec A008. However, the owner may elect to have owner occupied flights conducted under FAA Part 135 operating rules to comply with IRS rules pertaining to internal chargebacks. One of the most sticky areas of aircraft operation is the delicate balance of FAA/IRS rule compliance. It can be a mine field of contradiction.
Where is the reference that clarifies that 119.5(h) applies to “other than owner” noncommon carriage?? I do not see this reference to “other than owner” in FAR 119.5 (i.e. Where do the FARs differentiate between noncommon carriage conducted by an Air Carrier for an aircraft owner versus noncommon carriage conducted by an Air Carrier for a client who is not an aircraft owner??).
119.5 (h) is the reference… It’s FAA legaleaze, but the intent of the rule is that an operator shall not conduct noncommon/private carriage. Now remember…Part 119 applies to 121, 125, and 135 operations carriage for hire by and under the auspices of an Air Carrier Certificate . When the aircraft is operated at the direction of the owner and/or its agent it is not being operated under these rules unless the owner choses to due to an accounting procedure like I described above. If in that case the owner/agent trip is operated just like any other “for hire” trip. In either scenario when operated for the owner/agent, 119.5 (h) does not apply.
