Petition of the Aircraft Owner and Pilots Association (AOPA) To Amend FAA Policy Concerning Flying Club Operations at Federally Obligated Airports, 13719-13721 [2016-05833]
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Federal Register / Vol. 81, No. 50 / Tuesday, March 15, 2016 / Rules and Regulations
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[FR Doc. 2016–05509 Filed 3–14–16; 8:45 am]
BILLING CODE 4910–13–P
DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration
14 CFR Chapter I
[Docket No. FAA–2015–2022]
Petition of the Aircraft Owner and
Pilots Association (AOPA) To Amend
FAA Policy Concerning Flying Club
Operations at Federally Obligated
Airports
Federal Aviation
Administration (FAA), DOT.
ACTION: Final policy.
asabaliauskas on DSK3SPTVN1PROD with RULES
AGENCY:
The policy statement clarifies
the FAA’s policy interpretation
regarding the operation of flying clubs at
federally-obligated airports.
Specifically, this policy statement
amends FAA Order 5190.6B, Airport
Compliance Requirements, Section 10.6
SUMMARY:
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16:19 Mar 14, 2016
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13719
Flying Clubs to allow the clubs to
compensate instructors and mechanics
who are club members for services
rendered to the Club. This policy
statement also amends the FAA’s
definition of flying clubs.
DATES: This action becomes effective
April 4, 2016.
FOR FURTHER INFORMATION CONTACT:
Miguel Vasconcelos, Airport
Compliance Division, ACO–100, Federal
Aviation Administration, 800
Independence Avenue SW.,
Washington, DC 20591, telephone (202)
267–3085; facsimile: (202) 267–4620.
SUPPLEMENTARY INFORMATION:
interested parties. Public comments
were received and considered, and
changes to the existing policy were
adopted.
Introduction and Background
On April 3, 2015, the Aircraft Owners
and Pilots Association (AOPA) Senior
Vice President for Government Affairs &
Advocacy wrote to the FAA’s Director of
the Office of Airport Compliance and
Management Analysis proposing
revisions to FAA’s current policy
regarding compensation for flight
instructors and persons maintaining
aircraft within the context of flying club
operations. AOPA stated in its letter that
it sought ‘‘to help current flying clubs
and airport sponsors comply with the
FAA guidance outlined in 5190.6B, and
to provide future flying clubs the
opportunity to strengthen and unify
general aviation pilots.’’ AOPA said that
its goal is ‘‘to provide guidance that is
attainable and ensures educated
compliance from all airport users,’’ and
asked for ‘‘updated guidance regarding
compensation for flight instructors and
maintainers’’ because ‘‘flight instructors
and aviation mechanics are valuable
assets to the aviation industry, and
should be granted the privilege of fair
compensation for their efforts on a local
level.’’
AOPA proposes clubs be permitted to
compensate member flight instructors
and member mechanics for services
rendered to the club or club members.
Such compensation, AOPA suggests,
should be monetary or in the form of
credit against payment of dues or flight
time.
The FAA requested comments on
whether AOPA’s recommendations are
consistent with the FAA’s general
policies regarding commercial
aeronautical services and on-airport
flying clubs, and if so, whether the
stated agency policy on flying clubs
should be revised to amend its
definition of flying clubs. In particular,
the FAA sought comments from
commercial service providers that
engage in flight training and aircraft
rental, from associations representing
such service providers, and other
the ownership of the club aircraft must be
vested in the name of the flying club or
owned by all its members. The property
rights of the members of the club shall be
equal; no part of the net earnings of the club
will inure to the benefit of any individual in
any form, including salaries, bonuses, etc.
The flying club may not derive greater
revenue from the use of its aircraft than the
amount needed for the operation,
maintenance, and replacement of its aircraft.
FAA Order 5190.6B at para. 10(6)(b).
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I. Current Policy
FAA Order 5190.6B, FAA Airport
Compliance Manual (Order), paragraph
10(6)(a), published on September 30,
2009, defines a flying club as: ‘‘a
nonprofit or not-for-profit entity (e.g.,
corporation, association, or partnership)
organized for the express purpose of
providing its members with aircraft for
their personal use and enjoyment only.’’
The Order states that,
The Order also notes that ‘‘flying
clubs may not offer or conduct . . .
aircraft rental operations. They may
conduct aircraft flight instruction for
regular members only, and only
members of the flying club may operate
the aircraft.’’ FAA Order 5190.6B at
para. 10.6(c)(1). The Order also states
that ‘‘no flying club shall permit its
aircraft to be used for flight instruction
for any person, including members of
the club owning the aircraft, when such
person pays or becomes obligated to pay
for such instruction. FAA Order
5190.6B at para. 10.6(c)(3). An
exception applies when the instruction
is given by a lessee based on the airport
who provides flight training and the
person receiving the training is a
member of the flying club. Id. Flight
instructors who are also club members
may not receive payment for instruction
except that they may be compensated by
credit against payment of dues or flight
time’’ and that ‘‘any qualified mechanic
who is a registered member and part
owner of the aircraft owned and
operated by a flying club may perform
maintenance work on aircraft owned by
the club. The flying club may not
become obligated to pay for such
maintenance work except that such
mechanics may be compensated by
credit against payment of dues or flight
time.’’ Flying clubs are defined in such
a way as to differentiate from for-profit
aeronautical businesses offering
aeronautical services to general public,
e.g., FBOs, flight schools and aircraft
rental providers.
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Federal Register / Vol. 81, No. 50 / Tuesday, March 15, 2016 / Rules and Regulations
The owner of any federally-obligated
airport (airport sponsor) is required by
the sponsor grant assurances to operate
that airport for the use and benefit of the
public and to make that airport available
to all types, kinds, and classes of
aeronautical activity on fair and
reasonable terms, without unjust
discrimination.
II. AOPA Proposal
AOPA states that its
recommendations are designed to
promote flying clubs by allowing flight
instructors and mechanics who are club
members to receive monetary
compensation for services conducted for
other club members or club aircraft:
AOPA Policy Proposal Item 1
‘‘No flying club shall permit its aircraft to
be used for flight instruction for any person,
including members of the club owning the
aircraft, when such person pays or becomes
obligated to pay for such instruction except
in the following circumstances; (a) The flight
instruction is provided to a club member by
a commercial operator authorized by the
airport sponsor to provide flight instruction
on field. (b) The flight instruction is provided
to a club member by a flight instructor who
is also a club member that is in good
standings according to the club bylaws. In
either case, the flight instructor may receive
monetary compensation; however the flying
club is prohibited from holding itself out to
the public as a fixed based operator, a
specialized aviation service operation, or a
flight school. In the case of (b) above, the
Airport Sponsor has the right to limit flight
instruction for monetary compensation but
must permit the club to compensate club
instructors with credit against payment of
dues or flight time.’’
AOPA Policy Proposal Item 2
asabaliauskas on DSK3SPTVN1PROD with RULES
‘‘Any qualified mechanic who is a member
of the flying club may perform maintenance
work on aircraft owned or exclusively used
by the flying club. The flying club may not
become obligated to pay for such
maintenance work except that such
mechanics may be compensated not to
exceed a reasonable rate for the work
performed at the discretion of club members.
The club however may not hold out to the
public as operating as a fixed base operator,
a specialized aviation service operation, or
maintenance facility. The Airport Sponsor
has the right to limit maintenance work for
monetary compensation but must permit the
club to compensate club mechanics with
credit against payment of dues or flight
time.’’
III. Comments Received
The FAA received comments from 44
airport users including flight
instructors, pilots and flying club
members. Thirty-seven of the airport
users were flying club members who
submitted a letter identifying
themselves as ‘‘Flying Club Participants
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16:19 Mar 14, 2016
Jkt 238001
at Air Venture 2015’’. The remaining
seven airport users submitted individual
comments. Two industry groups
submitted comments: Flight School
Association of North America (FSANA)
and National Air Transportation
Association of North America (NATA).
FSANA is a membership-based
association representing flight schools
and firms involved in flight training.
NATA is an organization representing
the interest of aviation businesses such
as aircraft fueling, maintenance, parts
sales, storage, rental, airline servicing,
flight training, Part 135 on-demand air
charter, and fractional aircraft program
management.
Forty-three airport users offered
support of both AOPA Policy Proposals:
An individual commenter believes that
the policy change would provide an
incentive for pilots who belong to flying
clubs to remain current and continue
their education in a convenient, costeffective, and familiar environment.
Another commenter indicated that small
airports rely on flying clubs because
there is not enough business activity to
support a flight school. This commenter
is an inactive pilot because there is no
aircraft rental or flight training available
at the airport. However, the club at a
local airport has several certificated
flight instructors (CFI). Many CFIs have
full time jobs and are not interested in
donating their evenings and weekends
without compensation. The president of
a nonprofit flying club at Skyhaven
Airport in Rochester, New Hampshire,
indicates that the airport does not have
a flight school. None of the club
members can receive proficiency
checkouts or additional training in club
aircraft without violating the airport’s
policy. There are several CFIs in the
community that would join the club if
they could be compensated.
Supporters of the AOPA proposal
believe the proposed policy change
would (1) provide enhanced
opportunities for students to fulfill their
educational needs in surroundings they
find appealing and accessible; (2)
provide incentive for pilots who are
members of flying clubs to remain
current; and (3) create additional
opportunities and incentives for
certificated flight instructors to actively
participate in flying clubs.
A commenter is opposed to a change
in policy. He believes it will weaken
‘‘for profit’’ flight schools which have
suffered financially for the past eight
years.
FSANA believes that flying clubs can
be a positive asset to the community.
FSANA recognizes that flying clubs that
are not for profit have a business
advantage over for profit flight schools.
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Frm 00008
Fmt 4700
Sfmt 4700
They also believe a flying club should
not be classified as a commercial
operator. FSANA supports
compensation for certificated flight
instructors and mechanics as long as
flying clubs serve the needs of their
members and not promote their services
to the general public and do not
compete with commercial operators.
FSANA encouraged the FAA to create
awareness and enforce transparency for
the flying club community and airport
sponsors to ensure that flying clubs do
not compete with commercial operators
and promote themselves to the general
public.
NATA recognizes AOPA’s initiative is
intended to increase public interest in
flying by strengthening flying clubs. Of
concern to NATA are those entities that
classify themselves as flying clubs but
are commercial aviation businesses thus
avoiding compliance with an airport
sponsor’s minimum standards. NATA
asserts that flying clubs that offer their
services to the general public should not
be able to enjoy the protection of a nonprofit flying club to avoid complying
with an airport’s minimum standards.
NATA does not object to either of
AOPA’s proposals but recommends that
CFIs and mechanics receive either (1)
monetary compensation or (2)
discounted/waived regular club member
dues or flying time, but not both. NATA
believes that without such a restriction,
outside instructors or mechanics could
receive waived dues and monetary
compensation for performing work
without ever having invested in the club
as would a bona-fide member. NATA
suggests that the policy change with
these limitations will be beneficial and
will create a more level playing field.
FSANA and NATA suggest that any
clarification of the policy should
emphasize that (1) flying clubs should at
no time hold themselves out as fixed
based operators, flight schools, or as
businesses at which people can learn to
fly; and (2) CFIs and mechanics should
be permitted to receive monetary
compensation as long as flying clubs of
which they are members meet adequate
criteria, which may include the airport
sponsor’s authorization and/or sponsorimposed conditions. FSANA and NATA
also recommended that flying clubs
must not indicate in any form of
marketing and/or communications that
they are a flight school, and flying clubs
must not indicate in any form of
marketing and/or communications that
they are a business where people can
learn to fly.
IV. Final Policy Changes
FAA’s primary concern is that flying
clubs operating at federally-obligated
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asabaliauskas on DSK3SPTVN1PROD with RULES
Federal Register / Vol. 81, No. 50 / Tuesday, March 15, 2016 / Rules and Regulations
airports must conform to the FAA
definition found in FAA Order 5190.6B,
paragraph 10.6. As stated, the Order
defines ‘‘a flying club as a nonprofit or
not-for-profit entity (e.g., corporation,
association, or partnership) organized
for the express purpose of providing its
members with aircraft for their personal
use and enjoyment only.’’ In addition,
the ownership of the club aircraft must
be vested in the name of the flying club
or owned by all its members, the
property rights of the members of the
club shall be equal and no part of the
net earnings of the club will inure to the
benefit of any individual in any form,
including salaries, bonuses, etc. These
flying clubs can be distinguished from
commercial service providers that use
the term ‘‘flying club’’ to describe their
operation in order to avoid having to
comply with the airport’s minimum
standards for commercial service
providers Those ‘‘flying clubs’’ do not
conform to the FAA definition and put
other commercial aeronautical service
providers at an economic disadvantage.
Generally, they hold themselves out to
the public as alternatives to traditional
flight schools and aircraft rental
providers, and charge only nominal
annual ‘‘club fees.’’
FAA policy will emphasize three
points: (1) Flying clubs should at no
time hold themselves out as fixed based
operators, flight schools, or as
businesses offering services to the
general public; and (2) CFIs and
mechanics should be permitted to
receive either monetary compensation
or discounted/waived regular club
member dues but not both; (3) flying
clubs must not indicate, in any form of
marketing and/or communications, that
they are a flight school and flying clubs
must not indicate in any form of
marketing and/or communications that
they are a business where people can
learn to fly. FAA agrees with NATA that
flight instructors and mechanics should
be bona-fide club members paying dues
as a condition to receiving
compensation for services or a bona-fide
member receiving a discount or waiver
of dues with no compensation. To offer
both compensation and discounted/
waived dues may result in abuse and
the use of outside instructors and
mechanics who have no investment of
time or commitment to the club.
Additionally, FAA agrees with NATA
and FSANA that flying clubs must
distinguish themselves from other
aeronautical service providers.
FAA expects that sponsors of
federally-obligated airports will take
appropriate action to ensure that
commercial operators and flying clubs
are properly classified, and the
VerDate Sep<11>2014
16:19 Mar 14, 2016
Jkt 238001
sponsor’s actions are consistent with its
grant assurances, specifically Grant
Assurance 22, Economic
Nondiscrimination.
FAA’s policy regarding flying clubs is
amended by revising FAA Order
5190.6B paragraphs 10.6(c)(3) and (4)
and by adding paragraphs 10.6 (c)(8)
and (9):
b. General The ownership of the
club aircraft must be vested in the name
of the flying club or owned by all its
members. The property rights of the
members of the club shall be equal; no
part of the net earnings of the club will
inure to the benefit of any individual in
any form, including salaries, bonuses,
etc. The flying club may not derive
greater revenue from the use of its
aircraft than the amount needed for the
operation, maintenance and
replacement of its aircraft.
(c)(3). A flying club may permit its
aircraft to be used for flight instruction
in a club-owned aircraft as long as both
the instructor providing instruction and
person receiving instruction are
members of the club owning the aircraft,
or when the instruction is given by a
lessee based on the airport who
provides flight training and the person
receiving the training is a member of the
flying club. In either circumstance, a
flight instructor may receive monetary
compensation for instruction or may be
compensated by credit against payment
of dues or flight time; however that
individual may not receive both
compensation and waived or discounted
dues or flight time concurrently. The
airport sponsor may set limits on the
amount of instruction that may be
performed for compensation.
(c)(4). A qualified mechanic who is a
registered member and part owner of the
aircraft owned and operated by a flying
club may perform maintenance work on
aircraft owned by the club. The
mechanic may receive monetary
compensation for such maintenance
work or may be compensated by credit
against payment of dues or flight time;
however that individual may not receive
both compensation and waived or
discounted dues or flight time
concurrently. The airport sponsor may
set limits on the amount of maintenance
that may be performed for
compensation.
(c)(8). Flying Clubs may not hold
themselves out to the public as fixed
based operators, a specialized aviation
service operation, maintenance facility
or a flight school and are prohibited
from advertisements as such or be
required to comply with the appropriate
airport minimum standards.
(c)(9). Flying Clubs may not indicate
in any form of marketing and/or
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13721
communications that they are a flight
school, and Flying Clubs must not
indicate in any form of marketing and/
or communications that they are a
business where people can learn to fly.
Issued in Washington, DC, on March 9,
2016.
Byron Huffman,
Acting Director, Office of Airport Compliance
and Management Analysis.
[FR Doc. 2016–05833 Filed 3–14–16; 8:45 am]
BILLING CODE 4910–13–P
DEPARTMENT OF HOMELAND
SECURITY
U.S. Customs and Border Protection
DEPARTMENT OF THE TREASURY
19 CFR Part 12
[CBP Dec. 16–05]
RIN 1515–AE08
Extension of Import Restrictions
Imposed on Certain Archaeological
and Ethnological Materials From the
Republic of Colombia
Customs and Border Protection,
Department of Homeland Security;
Department of the Treasury.
ACTION: Final rule.
AGENCY:
This document amends the
U.S. Customs and Border Protection
(CBP) regulations to reflect the
extension of import restrictions on
certain archaeological and ethnological
materials from the Republic of Colombia
(‘‘Colombia’’). The restrictions, which
were originally imposed by CBP
Decision (Dec.) 06–09 and extended by
CBP Dec. 11–06, are due to expire on
March 15, 2016. The Assistant Secretary
for Educational and Cultural Affairs,
United States Department of State, has
determined that factors continue to
warrant the imposition of import
restrictions and no cause for suspension
exists. Accordingly, these import
restrictions will remain in effect for an
additional five years, and the CBP
regulations are being amended to reflect
this extension until March 15, 2021.
These restrictions are being extended
pursuant to determinations of the
United States Department of State made
under the terms of the Convention on
Cultural Property Implementation Act
that implemented the United Nations
Educational, Scientific and Cultural
Organization (UNESCO) Convention on
the Means of Prohibiting and Preventing
the Illicit Import, Export and Transfer of
Ownership of Cultural Property. CBP
Dec. 06–09 contains the Designated List
SUMMARY:
E:\FR\FM\15MRR1.SGM
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]]>Agencies
[Federal Register Volume 81, Number 50 (Tuesday, March 15, 2016)]
[Rules and Regulations]
[Pages 13719-13721]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-05833]
-----------------------------------------------------------------------
DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration
14 CFR Chapter I
[Docket No. FAA-2015-2022]
Petition of the Aircraft Owner and Pilots Association (AOPA) To
Amend FAA Policy Concerning Flying Club Operations at Federally
Obligated Airports
AGENCY: Federal Aviation Administration (FAA), DOT.
ACTION: Final policy.
-----------------------------------------------------------------------
SUMMARY: The policy statement clarifies the FAA's policy interpretation
regarding the operation of flying clubs at federally-obligated
airports. Specifically, this policy statement amends FAA Order 5190.6B,
Airport Compliance Requirements, Section 10.6 Flying Clubs to allow the
clubs to compensate instructors and mechanics who are club members for
services rendered to the Club. This policy statement also amends the
FAA's definition of flying clubs.
DATES: This action becomes effective April 4, 2016.
FOR FURTHER INFORMATION CONTACT: Miguel Vasconcelos, Airport Compliance
Division, ACO-100, Federal Aviation Administration, 800 Independence
Avenue SW., Washington, DC 20591, telephone (202) 267-3085; facsimile:
(202) 267-4620.
SUPPLEMENTARY INFORMATION:
Introduction and Background
On April 3, 2015, the Aircraft Owners and Pilots Association (AOPA)
Senior Vice President for Government Affairs & Advocacy wrote to the
FAA's Director of the Office of Airport Compliance and Management
Analysis proposing revisions to FAA's current policy regarding
compensation for flight instructors and persons maintaining aircraft
within the context of flying club operations. AOPA stated in its letter
that it sought ``to help current flying clubs and airport sponsors
comply with the FAA guidance outlined in 5190.6B, and to provide future
flying clubs the opportunity to strengthen and unify general aviation
pilots.'' AOPA said that its goal is ``to provide guidance that is
attainable and ensures educated compliance from all airport users,''
and asked for ``updated guidance regarding compensation for flight
instructors and maintainers'' because ``flight instructors and aviation
mechanics are valuable assets to the aviation industry, and should be
granted the privilege of fair compensation for their efforts on a local
level.''
AOPA proposes clubs be permitted to compensate member flight
instructors and member mechanics for services rendered to the club or
club members. Such compensation, AOPA suggests, should be monetary or
in the form of credit against payment of dues or flight time.
The FAA requested comments on whether AOPA's recommendations are
consistent with the FAA's general policies regarding commercial
aeronautical services and on-airport flying clubs, and if so, whether
the stated agency policy on flying clubs should be revised to amend its
definition of flying clubs. In particular, the FAA sought comments from
commercial service providers that engage in flight training and
aircraft rental, from associations representing such service providers,
and other interested parties. Public comments were received and
considered, and changes to the existing policy were adopted.
I. Current Policy
FAA Order 5190.6B, FAA Airport Compliance Manual (Order), paragraph
10(6)(a), published on September 30, 2009, defines a flying club as:
``a nonprofit or not-for-profit entity (e.g., corporation, association,
or partnership) organized for the express purpose of providing its
members with aircraft for their personal use and enjoyment only.'' The
Order states that,
the ownership of the club aircraft must be vested in the name of the
flying club or owned by all its members. The property rights of the
members of the club shall be equal; no part of the net earnings of
the club will inure to the benefit of any individual in any form,
including salaries, bonuses, etc. The flying club may not derive
greater revenue from the use of its aircraft than the amount needed
for the operation, maintenance, and replacement of its aircraft. FAA
Order 5190.6B at para. 10(6)(b).
The Order also notes that ``flying clubs may not offer or conduct .
. . aircraft rental operations. They may conduct aircraft flight
instruction for regular members only, and only members of the flying
club may operate the aircraft.'' FAA Order 5190.6B at para. 10.6(c)(1).
The Order also states that ``no flying club shall permit its aircraft
to be used for flight instruction for any person, including members of
the club owning the aircraft, when such person pays or becomes
obligated to pay for such instruction. FAA Order 5190.6B at para.
10.6(c)(3). An exception applies when the instruction is given by a
lessee based on the airport who provides flight training and the person
receiving the training is a member of the flying club. Id. Flight
instructors who are also club members may not receive payment for
instruction except that they may be compensated by credit against
payment of dues or flight time'' and that ``any qualified mechanic who
is a registered member and part owner of the aircraft owned and
operated by a flying club may perform maintenance work on aircraft
owned by the club. The flying club may not become obligated to pay for
such maintenance work except that such mechanics may be compensated by
credit against payment of dues or flight time.'' Flying clubs are
defined in such a way as to differentiate from for-profit aeronautical
businesses offering aeronautical services to general public, e.g.,
FBOs, flight schools and aircraft rental providers.
[[Page 13720]]
The owner of any federally-obligated airport (airport sponsor) is
required by the sponsor grant assurances to operate that airport for
the use and benefit of the public and to make that airport available to
all types, kinds, and classes of aeronautical activity on fair and
reasonable terms, without unjust discrimination.
II. AOPA Proposal
AOPA states that its recommendations are designed to promote flying
clubs by allowing flight instructors and mechanics who are club members
to receive monetary compensation for services conducted for other club
members or club aircraft:
AOPA Policy Proposal Item 1
``No flying club shall permit its aircraft to be used for flight
instruction for any person, including members of the club owning the
aircraft, when such person pays or becomes obligated to pay for such
instruction except in the following circumstances; (a) The flight
instruction is provided to a club member by a commercial operator
authorized by the airport sponsor to provide flight instruction on
field. (b) The flight instruction is provided to a club member by a
flight instructor who is also a club member that is in good
standings according to the club bylaws. In either case, the flight
instructor may receive monetary compensation; however the flying
club is prohibited from holding itself out to the public as a fixed
based operator, a specialized aviation service operation, or a
flight school. In the case of (b) above, the Airport Sponsor has the
right to limit flight instruction for monetary compensation but must
permit the club to compensate club instructors with credit against
payment of dues or flight time.''
AOPA Policy Proposal Item 2
``Any qualified mechanic who is a member of the flying club may
perform maintenance work on aircraft owned or exclusively used by
the flying club. The flying club may not become obligated to pay for
such maintenance work except that such mechanics may be compensated
not to exceed a reasonable rate for the work performed at the
discretion of club members. The club however may not hold out to the
public as operating as a fixed base operator, a specialized aviation
service operation, or maintenance facility. The Airport Sponsor has
the right to limit maintenance work for monetary compensation but
must permit the club to compensate club mechanics with credit
against payment of dues or flight time.''
III. Comments Received
The FAA received comments from 44 airport users including flight
instructors, pilots and flying club members. Thirty-seven of the
airport users were flying club members who submitted a letter
identifying themselves as ``Flying Club Participants at Air Venture
2015''. The remaining seven airport users submitted individual
comments. Two industry groups submitted comments: Flight School
Association of North America (FSANA) and National Air Transportation
Association of North America (NATA). FSANA is a membership-based
association representing flight schools and firms involved in flight
training. NATA is an organization representing the interest of aviation
businesses such as aircraft fueling, maintenance, parts sales, storage,
rental, airline servicing, flight training, Part 135 on-demand air
charter, and fractional aircraft program management.
Forty-three airport users offered support of both AOPA Policy
Proposals: An individual commenter believes that the policy change
would provide an incentive for pilots who belong to flying clubs to
remain current and continue their education in a convenient, cost-
effective, and familiar environment. Another commenter indicated that
small airports rely on flying clubs because there is not enough
business activity to support a flight school. This commenter is an
inactive pilot because there is no aircraft rental or flight training
available at the airport. However, the club at a local airport has
several certificated flight instructors (CFI). Many CFIs have full time
jobs and are not interested in donating their evenings and weekends
without compensation. The president of a nonprofit flying club at
Skyhaven Airport in Rochester, New Hampshire, indicates that the
airport does not have a flight school. None of the club members can
receive proficiency checkouts or additional training in club aircraft
without violating the airport's policy. There are several CFIs in the
community that would join the club if they could be compensated.
Supporters of the AOPA proposal believe the proposed policy change
would (1) provide enhanced opportunities for students to fulfill their
educational needs in surroundings they find appealing and accessible;
(2) provide incentive for pilots who are members of flying clubs to
remain current; and (3) create additional opportunities and incentives
for certificated flight instructors to actively participate in flying
clubs.
A commenter is opposed to a change in policy. He believes it will
weaken ``for profit'' flight schools which have suffered financially
for the past eight years.
FSANA believes that flying clubs can be a positive asset to the
community. FSANA recognizes that flying clubs that are not for profit
have a business advantage over for profit flight schools. They also
believe a flying club should not be classified as a commercial
operator. FSANA supports compensation for certificated flight
instructors and mechanics as long as flying clubs serve the needs of
their members and not promote their services to the general public and
do not compete with commercial operators. FSANA encouraged the FAA to
create awareness and enforce transparency for the flying club community
and airport sponsors to ensure that flying clubs do not compete with
commercial operators and promote themselves to the general public.
NATA recognizes AOPA's initiative is intended to increase public
interest in flying by strengthening flying clubs. Of concern to NATA
are those entities that classify themselves as flying clubs but are
commercial aviation businesses thus avoiding compliance with an airport
sponsor's minimum standards. NATA asserts that flying clubs that offer
their services to the general public should not be able to enjoy the
protection of a non-profit flying club to avoid complying with an
airport's minimum standards. NATA does not object to either of AOPA's
proposals but recommends that CFIs and mechanics receive either (1)
monetary compensation or (2) discounted/waived regular club member dues
or flying time, but not both. NATA believes that without such a
restriction, outside instructors or mechanics could receive waived dues
and monetary compensation for performing work without ever having
invested in the club as would a bona-fide member. NATA suggests that
the policy change with these limitations will be beneficial and will
create a more level playing field.
FSANA and NATA suggest that any clarification of the policy should
emphasize that (1) flying clubs should at no time hold themselves out
as fixed based operators, flight schools, or as businesses at which
people can learn to fly; and (2) CFIs and mechanics should be permitted
to receive monetary compensation as long as flying clubs of which they
are members meet adequate criteria, which may include the airport
sponsor's authorization and/or sponsor-imposed conditions. FSANA and
NATA also recommended that flying clubs must not indicate in any form
of marketing and/or communications that they are a flight school, and
flying clubs must not indicate in any form of marketing and/or
communications that they are a business where people can learn to fly.
IV. Final Policy Changes
FAA's primary concern is that flying clubs operating at federally-
obligated
[[Page 13721]]
airports must conform to the FAA definition found in FAA Order 5190.6B,
paragraph 10.6. As stated, the Order defines ``a flying club as a
nonprofit or not-for-profit entity (e.g., corporation, association, or
partnership) organized for the express purpose of providing its members
with aircraft for their personal use and enjoyment only.'' In addition,
the ownership of the club aircraft must be vested in the name of the
flying club or owned by all its members, the property rights of the
members of the club shall be equal and no part of the net earnings of
the club will inure to the benefit of any individual in any form,
including salaries, bonuses, etc. These flying clubs can be
distinguished from commercial service providers that use the term
``flying club'' to describe their operation in order to avoid having to
comply with the airport's minimum standards for commercial service
providers Those ``flying clubs'' do not conform to the FAA definition
and put other commercial aeronautical service providers at an economic
disadvantage. Generally, they hold themselves out to the public as
alternatives to traditional flight schools and aircraft rental
providers, and charge only nominal annual ``club fees.''
FAA policy will emphasize three points: (1) Flying clubs should at
no time hold themselves out as fixed based operators, flight schools,
or as businesses offering services to the general public; and (2) CFIs
and mechanics should be permitted to receive either monetary
compensation or discounted/waived regular club member dues but not
both; (3) flying clubs must not indicate, in any form of marketing and/
or communications, that they are a flight school and flying clubs must
not indicate in any form of marketing and/or communications that they
are a business where people can learn to fly. FAA agrees with NATA that
flight instructors and mechanics should be bona-fide club members
paying dues as a condition to receiving compensation for services or a
bona-fide member receiving a discount or waiver of dues with no
compensation. To offer both compensation and discounted/waived dues may
result in abuse and the use of outside instructors and mechanics who
have no investment of time or commitment to the club. Additionally, FAA
agrees with NATA and FSANA that flying clubs must distinguish
themselves from other aeronautical service providers.
FAA expects that sponsors of federally-obligated airports will take
appropriate action to ensure that commercial operators and flying clubs
are properly classified, and the sponsor's actions are consistent with
its grant assurances, specifically Grant Assurance 22, Economic
Nondiscrimination.
FAA's policy regarding flying clubs is amended by revising FAA
Order 5190.6B paragraphs 10.6(c)(3) and (4) and by adding paragraphs
10.6 (c)(8) and (9):
b. General The ownership of the club aircraft must be vested in the
name of the flying club or owned by all its members. The property
rights of the members of the club shall be equal; no part of the net
earnings of the club will inure to the benefit of any individual in any
form, including salaries, bonuses, etc. The flying club may not derive
greater revenue from the use of its aircraft than the amount needed for
the operation, maintenance and replacement of its aircraft.
(c)(3). A flying club may permit its aircraft to be used for flight
instruction in a club-owned aircraft as long as both the instructor
providing instruction and person receiving instruction are members of
the club owning the aircraft, or when the instruction is given by a
lessee based on the airport who provides flight training and the person
receiving the training is a member of the flying club. In either
circumstance, a flight instructor may receive monetary compensation for
instruction or may be compensated by credit against payment of dues or
flight time; however that individual may not receive both compensation
and waived or discounted dues or flight time concurrently. The airport
sponsor may set limits on the amount of instruction that may be
performed for compensation.
(c)(4). A qualified mechanic who is a registered member and part
owner of the aircraft owned and operated by a flying club may perform
maintenance work on aircraft owned by the club. The mechanic may
receive monetary compensation for such maintenance work or may be
compensated by credit against payment of dues or flight time; however
that individual may not receive both compensation and waived or
discounted dues or flight time concurrently. The airport sponsor may
set limits on the amount of maintenance that may be performed for
compensation.
(c)(8). Flying Clubs may not hold themselves out to the public as
fixed based operators, a specialized aviation service operation,
maintenance facility or a flight school and are prohibited from
advertisements as such or be required to comply with the appropriate
airport minimum standards.
(c)(9). Flying Clubs may not indicate in any form of marketing and/
or communications that they are a flight school, and Flying Clubs must
not indicate in any form of marketing and/or communications that they
are a business where people can learn to fly.
Issued in Washington, DC, on March 9, 2016.
Byron Huffman,
Acting Director, Office of Airport Compliance and Management Analysis.
[FR Doc. 2016-05833 Filed 3-14-16; 8:45 am]
BILLING CODE 4910-13-P
