Legal Interpretations
Rudolph 2008
Summary
The Question
Can the individual owners of a group of commonly owned companies be treated as "parents" under 14 CFR 91.501(b)?
Background
Two individuals planned to own (49% and 51%) seven companies. Company A1, wholly owned by Company A, owns an aircraft; Company A charges the other companies for its use, and Company D, which employs the flight crew, charges them for crew services and expenses.
The FAA’s Interpretation
No. Even if one individual owned all of the companies, that owner would not be a "parent" under 14 CFR 91.501(b)(5), because "parent" in that section relates to corporate law and the relationship between a corporate parent and a corporate subsidiary.
- Requester
- Rudolph
- Issued
- June 2, 2008
- Subject
- General Operating & Flight Rules
Regulations Cited
- 14 CFR 91.50
- 14 CFR 91.501
Page 1
U.S. Deportment
of TronsportotiOn
Federol Aviation
Administration
JUN 2. 2008
John Rudajph
Dear Mr. Rudolph:
Office of the Chief Counsel 800 Independence Ave., S.W.
Washington, D .C. 20591
This is in response to your letter dated March 12, 2008. In your letter, you state that two individuals plan to own (49% and 51%) a total of 7 companies. You write that Company A wholly owns Company Al, which owns an aircraft and that Company D employs the flight crew. Further, Company A charges the other companies for their use of Al's aircraft. Company D charges the other companies for the services of the flight crew and their expenses.
You ask whether the individual owners of all of these companies can be viewed as "parents" under § 91.501 (b). The answer is no. Even if the companies were owned by one individual owner, that owner would not be viewed as a "parent" under§ 91.501(b)(5). "Parent" as used in that section relates to corporate law and the relationship between a corporate parent and a corporate subsidiary.
You ask which entities should have operational control to ensure compliance with Part 91. Your que~tion is not clear. Whichever entity has operational control in tenns of the flight c:ew ~nd t? t~rrns of being held accountable by the FAA and others in the event of asafety v10Iation, mc1dent, accident or injury, must comply with the safety requirements of Part 91. To the extent that on separate fli hts diffi .
whether each of those com anie;has to erent companies operate the aircraft, you ask or whether the djfferent co~panies can get FAA approvals for MELs or RVSM operations RVSM. As this not a legal issue you shop~:~. under a comm~n approval for MELs or Standards Service, which will de~ide on ~e m irect your question to the FAA Flight operator is authorized RVSM flight and wh. heans and I?ethod o.f documenting which an-MEL. - - - - - - - - - ic operator is authorized to operate pursuant to This response has been coordinated with Flight Standards Service.
Sincerely
Re~~bfrn-~Assistant Chief Coun 1R .
se egulat10ns Div:ision, AGC-200
Regulations Referenced
Snapshot retrieved August 6, 2026.