The National Business Aviation Association (NBAA) announced today that the Federal Aviation Administration (FAA) recently agreed to continue allowing small aircraft operators that are Members of the Association to take advantage offlexibility usually available only to operators of larger, turbine-powered airplanes.
The agency issued a two-year renewal for Exemption 7897, more commonly known as “NBAA’s Small Aircraft Exemption.”
Available only to NBAA Members, Exemption 7897 allows operators of piston-powered airplanes, small airplanes and rotorcraft to utilize, among other provisions, limited cost-reimbursement for certain flights, as allowed under Part 91, Subpart F of the federal aviation regulations.
NBAA’s Small Aircraft Exemption allows companies to recoup a portion of the associated costs when transporting a guest on the company aircraft, or for the use of the aircraft by employees of a subsidiary company. The exemption also applies to the use of time-sharing, interchange and joint ownership agreements.
“NBAA is pleased that the FAA agreed to continue providing this valuable tool for business owners seeking to maximize the profitability and usability of a small aircraft,” said Doug Carr, NBAA vice president, safety, security, operations & regulation.
Without NBAA’s Small Aircraft Exemption, the cost sharing options available under Part 91F are only available to aircraft with a maximum takeoff weight of more than 12,500 pounds; multi-engine turbojet aircraft, regardless of size; or fractional program aircraft.
The renewal is valid until March 31, 2015, and is not altered from previous exemptions. NBAA’s Small Aircraft Exemption does not apply to Part 135 operations or to fractional operators.
NBAA’S SMALL AIRCRAFT EXEMPTION.
NBAA’s Small Aircraft Exemption allows operators of piston airplanes, small airplanes, and all helicopters to utilize the limited options for cost reimbursement permitted under Part 91, Subpart F of the Federal Aviation Regulations (FARs). This exemption has been approved by the Federal Aviation Administration (FAA) and is only available to NBAA Members.
Common situations where cost sharing may be helpful include the transportation of a guest on the company aircraft or use of the aircraft by employees of a subsidiary company. In addition, the use of time sharing, interchange, and joint ownership agreements are permitted under Part 91, Subpart F.
Without the NBAA Small Aircraft Exemption, the cost sharing options available under Part 91, Subpart F are only available to aircraft that fall into one of the following groups:
- The aircraft has a maximum takeoff weight of over 12,500 pounds, or;
- The aircraft is a multi-engine turbojet aircraft (regardless of size), or;
- The aircraft is a fractional program aircraft (regardless of size)
The NBAA web site provides Members with further information on the conditions and limitations of the Exemption and a copy of the FAA letter granting the Exemption to NBAA, which must be carried on board the aircraft
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