A Capitol View Charter Industry Redefined? By Rebecca Mulholland A s the general aviation community adapts to approach- ing industry changes—including NextGen moderniza- tion and drone integration—some issues are fighting for the spotlight that threaten to upend the progress we have made and put into question how we should move forward. At press time, the industry is awaiting Congressional passage of a long-anticipated five-year, $96.7 billion FAA reauthorization bill. Thanks to the hard work of major general aviation associ- ations and their members, like you, harmful and illegal flight sharing legislation was not included. However, it is important to keep Congress aware of the negative impacts of this legisla- tion on the industry and continue to fight against proponents who seek to alter the longstanding rules that govern private vs. commercial pilots and flights. For many years, NATA and other national general avia- tion associations have tirelessly fought to deter language that blurs the lines between private and commercial pilots and flights. Congressional proponents of flight-sharing apps, like Flytenow and AirPooler, were swayed to believe that our in- dustry does not need to follow the strict regulations for pilots and aircraft set by the FAA and should allow private pilots to establish public transportation services. While many Members of Congress understand the detrimental impact this model would have on our charter industry, Senator Mike Lee (R-UT) stands behind the Aviation Empowerment Act, which looks to “reduce regulations on America’s pilots by more tightly defin- ing key terms in the Federal Aviation Administration’s 1986 Advisory Circular and creating a new class of pilot.”1 To understand why proponents of this legislation feel it would, according to the Senator, “add definition and clarity to existing rules that will help unleash that innovation in the aviation community,”1 part separately: let’s dissect the Act and look at each COMMON CARRIER DEFINITION According to the 1986 FAA Advisory Circular 120-12A, common carriage is defined by four elements: (1) holding out of a willingness, (2) to transport persons or property, (3) from place to place and (4) for compensation or hire. The Aviation Empowerment Act looks to codify that definition to provide certainty and a clearer regulatory interpretation. It is important to keep in mind, however, that the FAA has long held that any receipt of a benefit (monetary or not) by a pilot from a passenger, for example, the sharing of flight ex- penses, constitutes compensation and is therefore a commer- cial activity, which necessitates more licensing and oversight requirements. Of course, there is a limited exception (14 CFR 61.113) that allows private pilots to share flight expenses with friends, family or colleagues. Proponents of the Aviation Empowerment Act are looking to alter the purpose of the exception—created as an excep- tion to the requirement that such flights be conducted by a commercial pilot and, depending on circumstances, a licensed air carrier—in order to bypass the safety, training and aircraft maintenance requirements for pilots who clearly intend to carry passengers for hire. Private pilots—with as little as 35 hours of flight time, no necessary insurance, and no require- ment to hold ratings permitting flight in poor weather, etc.— would be able to provide advertised transportation service as 1 United States Senate, Office of Senator Mike Lee (R-UT). (2018, April 11). Sen. Lee Introduces Aviation Empowerment Act [Press release]. Retrieved from https://www.lee.senate.gov/public/index.cfm/press-releases?ID=CA103592- 8C57-4E98-BDE7-9E544C1989B2 (United States Senate, Office of Senator Mike Lee (R-UT), 2018) Continued on page 10 Aviation Business Journal | 3rd Quarter 2018 9
