Legal Interpretations
Dymond-MooreVanAllen 2007
Summary
The Question
Can an LLC that owns and operates an aircraft solely for its owner's personal transportation, funded by the owner's contributions, operate under 14 CFR 91.501(b)(4)?
Background
Moore & Van Allen PLLC described an LLC that would own and operate an aircraft only for its owner, the owner's family, and guests, with the owner contributing the costs of owning and operating it.
The FAA’s Interpretation
No. The LLC would be a flight department company and the owner's contributions are compensation, so it must obtain certification under 14 CFR part 119 unless the aircraft's size allows operation under 14 CFR part 125. 14 CFR 91.501(b)(4) permits an individual owner, not a company, to carry guests without charge. Depending on the passengers, the flights could be common carriage requiring a part 119 certificate and part 121 or 135 operations.
- Requester
- Dymond
- Organization
- MooreVanAllen
- Issued
- March 9, 2007
- Subjects
- General Operating & Flight Rules · Air Carrier & Commercial Operations
Regulations Cited
- 14 CFR 91.501
- 14 CFR Part 119
- 14 CFR Part 121
- 14 CFR Part 125
- 14 CFR Part 135
Page 1
U.S.Department
of Transportation
Federal Aviation
Administration
MAR 9 2007
James W. Dymond, Esq.
Moore & VanAllen PLLC
430 Davis Drive, Suite 500
P.O. Box 13706
Research Triangle Park, NC 27709
RE: Request for Guidance and Interpretation Regarding "Flight Department
Companies" and Part 91 Operations
Dear Mr. Dymond:
This responds to your letter dated December 28, 2006 that presents a scenario in which certain U.S. citizens desire to form a limited liability company ("Company") for the purpose of owning and operating a civil aircraft ("Aircraft'). The owner of the Company ("Client') will make contributions to the Company in the amounts needed to pay the costs of owning and operating the aircraft that will be used solely for the transportation of the Client, the Client's family members and guests for personal purposes. You request a legal interpretation to several questions:
(1) Would the Company be considered a "flight department company" by the FAA [Federal Aviation Administration]?
Yes, as that phrase has been used in FAA interpretations. A company whose sole purpose is transportation by air and receives compensation (amounts paid by the Client needed to pay the costs of owning and operating the aircraft) must obtain certification under Part 119 unless the aircraft has a maximum allowable payload of 6000 pounds or more than 20 seats, . when it could operate under part 125. Section 91.501 (b)(4) is drafted to permit an individual owner, not a company, to operate an airplane for his own personal transportation and guests without charge. Thus section 91.501 (b)(4) cannot be used by a flight department company.
If the FAA would consider the Company to be a flight department company, then would the FAA consider the contributions made by the Client to the Company in order to fund the operating expenses of the Aircraft to be "compensation" for the Client's personal transportation on the Aircraft?
Yes.
(3) If the answers to Question 1 and Question 2 above are both "yes," then could the Company's flight operations (based on the assumptions) properly be conducted under Part 91 pursuant to the "personal transportation" exemption described in 14 C.F.R. § 91.501(b)(4)?
Page 2
No.
(4) If the answer to Question I and/or Question 2, above is "no," then would the Company's flight operations (based on the assumptions) properly be conducted under Part 91?
No. Depending upon the number of different kinds of passengers this might constitute common carriage, in which case the FAA would require th~ company to obtain a Part 119 certificate and operate within the requirements of Part 121 or Part 135.
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 Air Transportation Division of Flight Standards Service. If you have additional questions regarding this matter, please contact us at your convenience at (202) 267-3073.
Sincerely,
ReMi::.al;lft-Assistant. Chief Counsel,
Regulations Division (AGC-200)
Regulations Referenced
Snapshot retrieved August 6, 2026.