Legal Interpretations
Jung 1997
Summary
The Question
Does 14 CFR 91.501(b)(4), covering an operator's personal transportation and guests without charge, include carrying the operating company's employees, officials, and property?
Background
An attorney noted that 14 CFR 91.501(b)(4) mentions only "guests," unlike 14 CFR 91.501(b)(5), and also asked whether a company operating under (b)(4) without charge must have an ongoing primary business other than operating the airplane.
The FAA’s Interpretation
Yes. Carrying the operator's employees, officials, or property may fall within flights conducted by the operator for its personal transportation. Paragraph (b)(4) also does not require a primary business other than operating the airplane, but if the company's main business is operating the airplane, the FAA would question whether the air operations are a major enterprise for profit, which would appear to meet the 14 CFR 1.1 test for compensation or hire.
- Requester
- Jung
- Issued
- July 30, 1997
- Subjects
- General Operating & Flight Rules · Definitions
Regulations Cited
Page 1
July 30, 1997
Kevin Y. Jung, Esq.
Preston Gates & Ellis
701 Fifth Avenue
Suite 5000
Seattle, WA 98104-7078
RE: Part 91 Interpretation Request
Dear Mr. Jung:
This is in response to your letter of July 3, 1997, in which you seek confirmation of the following:
14 CFR Section 91.501(b)(4) provides that:
"Flights conducted by the operator of an airplane for his personal transportation or the transportation of his guests when no charge, assessment or fee is made for the transportation." Query #1: The section in question only addresses the carriage of "guests." Does this mean the company that owns an airplane cannot transport its employees, officials, or property under (b)(4), unlike Section 91.501(b)(5)? It is our understanding that (b)(4) contemplates employees, officials, and property of the company that operates the airplane. Is this correct?
Answer: Your understanding is correct. We could consider the transport of the operator's employees, officials, or property to fall within the scope of flights conducted by the operator for his/her personal transportation.
Query #2: It is our understanding that Section 91.501(b)(5) requires the company that owns the airplane to have an ongoing business as its primary operation other than operating the airplane. Does the same requirement hold true for subsection (b)(4)? In other words, if no charge, assessment, or fee is made for the transportation of guests (officials, employees, and property) under (b)(4), does the company must still have an ongoing business as the primary operation in addition to operating the airplane? Our interpretation is that this is not a requirement under subsection (b)(4) if no charge, assessment, or fee is made for the transportation. Please confirm.
Answer: (b)(4) does not require that the company operating the aircraft have an ongoing business as the primary operation in addition to operating the aircraft. However, if the primary or only business of the company is operating the airplane, I think we
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would be curious as to whether the air operations are, in themselves, a major enterprise for profit. If so, it would appear that the operation would meet the "major enterprise" test of 14 CFR 1.1 as an operation for compensation or hire.
Sincerely,
George L. Thompson
Regional Counsel
Regulations Referenced
Snapshot retrieved August 6, 2026.