Recommendation of the Fractional Ownership Aviation Rulemaking Committee (FOARC) Submitted to the FAA

Washington, DC, February 23, 2000 – The Fractional Ownership Aviation Rulemaking Committee today submitted to the FAA its consensus recommendation regarding the appropriate regulatory environment for fractional aircraft ownership programs. Drafted in the format of a Notice of Proposed Rulemaking in preparation for publication in the Federal Register, the 32,200-word document recommends adding a new Subpart K to FAR Part 91, and changing some aspects of Parts 119, 125 and 135. No changes are proposed to Part 91 affecting traditional business, corporate or management company flight departments. It was the unanimous conclusion of the FOARC that fractional owners are non-commercial users of business aviation and that fractional ownership programs should be regulated as non-commercial activities under Part 91, Subpart K. The FOARC recommendation and transmittal letter to FAA Administrator Jane Garvey are available for online reading or download on NBAA’s Web site at

NBAA’s Board supports the FOARC recommendation in concept and is receiving the Committee’s detailed recommendation today for review, but based upon our Membership’s expectations as expressed in our latest Member poll, we believe that this will prove to be an excellent solution for all concerned,” said NBAA President Jack Olcott.

It is important to note that the results of the 1999 NBAA Membership opinion poll related to the regulatory oversight of fractional activities were presented to the Committee on three separate occasions, and the full poll results were distributed in writing to the Committee’s members, including the FAA. NBAA President Jack Olcott, representing NBAA, served as one of the Committee’s members. In addition, NBAA Board Members Don Baldwin of Texaco and Paul Stinebring of Emerson Electric represented their company’s interests on the FOARC along with Thomas Ciotti, Chairman of NBAA’s Part 135 Standing Committee, representing Aviation Resource Management, Inc.

It is the longstanding view of the Association that a well-managed and progressive flight department operating company-owned or leased aircraft provides the most cost-effective form of business transportation.

NBAA represents the aviation interests of over 6,100 companies which own or operate general aviation aircraft as an aid to the conduct of their business, or are involved with business aviation. NBAA Member Companies earn annual revenues approaching $5 trillion — a number that is about half the gross domestic product — and employ more than 19 million people worldwide. The NBAA Annual Meeting & Convention is the world’s largest display of civil aviation products and services.