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Legal Interpretations

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Bauer-BakerBotts 2008

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Summary

The Question

May a corporation enter into a time-sharing agreement for its aircraft with an individual under the FAA regulations?

Background

Baker Botts L.L.P. cited two 1991 FAA interpretations suggesting time-sharing agreements between a corporation and an individual are not permitted, while stating its belief that corporations commonly enter such agreements with individual company officials.

The FAA’s Interpretation

Yes. Time-sharing between a corporation and an individual appears consistent with 14 CFR 91.501(c)(1), which defines a time-sharing agreement as one person leasing an airplane with flight crew to another person, and 14 CFR 1.1, which defines "person" to include individuals and corporations. The key is operational control: on flights under the individual's side of the agreement, the individual assumes operational control, and if willing to do so, 14 CFR 91.501(b)(6) permits the arrangement.

Requester
Bauer
Organization
BakerBotts
Issued
July 24, 2008
Subjects
General Operating & Flight Rules · Definitions

Regulations Cited

  • 14 CFR 1.1
  • 14 CFR 91.50
  • 14 CFR 91.501

Page 1

U.S. Department
of Transportation
Federal Aviation
Administration
JUL 2. 4 2008
Jeffrey M. Bauer
Baker Botts L.L.P.
The Warner
1299 Pennsylvania Ave., N.W.
Washington, D.C. 20004
Dear Mr. Bauer:
Office of the Chief Counsel 800 Independence Ave., S.W.
Washington, D.C. 20591

This responds to your email received on February 6, 2008 requesting an FAA legal opinion concerning "whether time-sharing agreements between a corporation and an individual are permitted under the FAA regulations." You indicate you found two "FAA interpretations from 1991 that suggest that time-sharing agreements between a corporation and an individual are not permitted under the regulations." However, you state your belief that it is "currently a common practice for a corporation to enter into a time-sharing agreement regarding its aircraft with an individual company official." As you note, the current industry practice appears to be consistent with the FAA regulations at section 91.501(c)(1) which defines a "time sharing agreement" as an "arrangement whereby a person leases his airplane with flight crew to another person .... " Part 1, section 1.1 defines "person" as "an individual, firm partnership, corporation, company, association, joint-stock association, or governmental entity."

However, the key to any flight under section 91.501 is who has operational control. In the example you provide between a company and an individual, if the flight is being provided under the individual's side of the time-sharing agreement, the individual will be assuming operational control of the aircraft. If the individual is willing to assume such responsibility, 14 C.F.R. § 91.50 I (b)(6) permits the arrangement.

This response was prepared by Bruce Glendening, Attorney in the Regulations Division of the Office of the Chief Counsel and has been coordinated with the Flight Standards Service, AFS-800. If you have additional questions regarding this matter, please contact us at your convenience at (202) 267-3073.

~ -h/~

RebeccaMactson

Assistant Chief Counsel, Regulations Division (AGC-200)

Regulations Referenced

14 CFR 91.50114 CFR Part 114 CFR 1.1

Snapshot retrieved August 6, 2026.

Summary

The Question

May a corporation enter into a time-sharing agreement for its aircraft with an individual under the FAA regulations?

Background

Baker Botts L.L.P. cited two 1991 FAA interpretations suggesting time-sharing agreements between a corporation and an individual are not permitted, while stating its belief that corporations commonly enter such agreements with individual company officials.

The FAA’s Interpretation

Yes. Time-sharing between a corporation and an individual appears consistent with 14 CFR 91.501(c)(1), which defines a time-sharing agreement as one person leasing an airplane with flight crew to another person, and 14 CFR 1.1, which defines "person" to include individuals and corporations. The key is operational control: on flights under the individual's side of the agreement, the individual assumes operational control, and if willing to do so, 14 CFR 91.501(b)(6) permits the arrangement.

Requester
Bauer
Organization
BakerBotts
Issued
July 24, 2008
Subjects
General Operating & Flight Rules · Definitions

Regulations Cited

  • 14 CFR 1.1
  • 14 CFR 91.50
  • 14 CFR 91.501