FAA REGULATORY ALERT: NBAA Small Aircraft Exemption Extended and Modified
Client Alert
The FAA recently extended to March 31, 2022 the long-standing exemption that allows NBAA member companies that operate certain small airplanes and helicopters to conduct certain flight operations under Part Section 91.501(b) that otherwise may only be performed under Part 91 by operators of larger, more complex aircraft, including some operations for which compensation is permitted, such as operations under Time Share Agreements, Interchange Agreements and Joint-Ownership Agreements, as well as operations for affiliated companies. This exemption, commonly referred to as the NBAA Small Aircraft Exemption, has been around for decades, and the FAA typically extends the exemption every two years. This time around, however, the FAA extracted a pound of flesh in exchange for the extension in the form of a new administrative requirement.
The NBAA Small Aircraft Exemption, attached below, applies to operators of U.S. registered aircraft that do not fall within the applicability of FAR 91.501(a). By its terms, FAR 91.501(a) applies to U.S. registered aircraft that are either large airplanes (meaning airplanes with an MTOW in excess of 12,500lbs.), multi-engine turbojet aircraft regardless of weight, and fractional program aircraft operating under Subpart K of Part 91. Aircraft to which the NBAA Small Aircraft Exemption apply therefore includes airplanes with MTOWs of 12,500 pounds or less (other than multi-engine turbojet and fractional aircraft operated under Subpart K), and all helicopters.
Aircraft operators who wish to take advantage of the NBAA Small Aircraft Exemption must be members of the NBAA and must comply with the terms and conditions of the exemption. These conditions have long included a requirement that the operator use an inspection program under FAR 91.409(f) that has been approved by the operator’s FSDO; that he or she notify his or her local FSDO that operations will be conducted under the NBAA Small Aircraft Exemption; and that he or she provide the FSDO with a copy of any applicable Time Share Agreements, Interchange Agreements and Joint-Ownership Agreements. Effective September 27, 2020, aircraft operators operating under the NBAA Small Aircraft Exemption now must also file a “Notice of Joinder to FAA Exemptions No. 7897K.” This Notice must be submitted to the FAA electronically via http://www.regulations.gov and must include the following:
a. The person’s name and, for a person other than an individual, the name of the authorized representative submitting the Notice of Joinder.
b. The person’s physical address and, for a person other than an individual, the physical address for the authorized representative. If the person or the authorized representative does not receive mail at the physical address provided, a mailing address must also be provided.
c. The person’s email address or, for applicants other than individuals, the email address of the authorized representative.
d. The person’s telephone number(s).
e. The person’s NBAA membership number.
f. A statement requesting the FAA appends the Notice of Joinder to the list of NBAA members authorized to exercise the privileges of Exemption No. 7897K.
g. An attestation that the person will not conduct any operation under Exemption No. 7897K if the person ceases to be a member of NBAA.
h. An attestation that the person will comply with all conditions and limitations of Exemption No. 7897K.
The NBAA has stated that it will create a form to allow members to easily comply with the new requirements of the exemption, and that the form will be available prior to the Sept. 27, 2020, notification date. GKG Law is a member of the NBAA and will obtain a copy of the form when it becomes available and will then make the form available to our clients who are NBAA members. In the meantime, if you have any questions or concerns regarding the NBAA Small Aircraft Exemption, please feel free to contact the business aviation attorneys at GKG Law, P.C.
