FAA Releases Long-awaited Guidance on Permissible Sharing of Flight Expenses

In response to a directive from the FAA Reauthorization Act of 2018, NATA welcomed an advisory circular (AC) released by the Federal Aviation Administration this week clarifying acceptable sharing of flight expenses. As expected, the AC affirms the longstanding precedent and policy from the FAA: holding out to the general public – including through the use of a website or app - without an operator’s certificate is prohibited. The legislation requiring the publication of this guidance was the result of a provision supported by NATA to give pilots better clarity on permissible flight sharing scenarios, and also required a study by the Government Accountability Office for which NATA was extensively interviewed (yet to be released).

In the new AC, the FAA confirmed that using internet-based platforms like social media, websites, or apps to advertise flights constitutes “holding out” and is therefore prohibited. Private pilots, however, are still able to share specific costs of the flight only if the non-flying party pays no less than the pro rata share. In reaffirming that stipulation, however, the FAA reminded pilots that examples of this type of pro rata flight sharing is an extremely narrow exemption carved out for limited circumstances, including a bona fide common purpose. NATA encourages pilots to review the advisory circular.  

If you have any questions, feel free to reach out to us at jfreye@nata.aero.