81_FR_13769 81 FR 13719 - Petition of the Aircraft Owner and Pilots Association (AOPA) To Amend FAA Policy Concerning Flying Club Operations at Federally Obligated Airports

81 FR 13719 - Petition of the Aircraft Owner and Pilots Association (AOPA) To Amend FAA Policy Concerning Flying Club Operations at Federally Obligated Airports

DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration

Federal Register Volume 81, Issue 50 (March 15, 2016)

Page Range13719-13721
FR Document2016-05833

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.

Federal Register, Volume 81 Issue 50 (Tuesday, March 15, 2016)
[Federal Register Volume 81, Number 50 (Tuesday, March 15, 2016)]
[Rules and Regulations]
[Pages 13719-13721]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-05833]


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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



                                                                     Federal Register / Vol. 81, No. 50 / Tuesday, March 15, 2016 / Rules and Regulations                                             13719

                                                  (i) Material Incorporated by Reference                  Flying Clubs to allow the clubs to                    interested parties. Public comments
                                                     (1) The Director of the Federal Register             compensate instructors and mechanics                  were received and considered, and
                                                  approved the incorporation by reference                 who are club members for services                     changes to the existing policy were
                                                  (IBR) of the service information listed in this         rendered to the Club. This policy                     adopted.
                                                  paragraph under 5 U.S.C. 552(a) and 1 CFR               statement also amends the FAA’s
                                                  part 51.                                                                                                      I. Current Policy
                                                                                                          definition of flying clubs.
                                                     (2) You must use this service information
                                                  as applicable to do the actions required by             DATES: This action becomes effective                    FAA Order 5190.6B, FAA Airport
                                                  this AD, unless the AD specifies otherwise.             April 4, 2016.                                        Compliance Manual (Order), paragraph
                                                     (i) Britten-Norman Service Bulletin SB 310,          FOR FURTHER INFORMATION CONTACT:                      10(6)(a), published on September 30,
                                                  Issue 4, dated September 25, 2015.                      Miguel Vasconcelos, Airport                           2009, defines a flying club as: ‘‘a
                                                     (ii) Reserved.                                       Compliance Division, ACO–100, Federal                 nonprofit or not-for-profit entity (e.g.,
                                                     (3) For Britten-Norman Aircraft Limited              Aviation Administration, 800                          corporation, association, or partnership)
                                                  service information identified in this AD,              Independence Avenue SW.,                              organized for the express purpose of
                                                  contact Britten-Norman Aircraft Limited,
                                                                                                          Washington, DC 20591, telephone (202)                 providing its members with aircraft for
                                                  Commodore House, Mountbatten Business
                                                  Centre, Millbrook Road East, Southampton                267–3085; facsimile: (202) 267–4620.                  their personal use and enjoyment only.’’
                                                  SO15 1HY, United Kingdom; telephone: +44                SUPPLEMENTARY INFORMATION:                            The Order states that,
                                                  20 3371 4000; fax: +44 20 3371 4001; email:                                                                   the ownership of the club aircraft must be
                                                  info@bnaircraft.com; Internet: http://                  Introduction and Background
                                                                                                                                                                vested in the name of the flying club or
                                                  www.britten-norman.com/customer-support/.                  On April 3, 2015, the Aircraft Owners              owned by all its members. The property
                                                     (4) You may review copies of the                     and Pilots Association (AOPA) Senior                  rights of the members of the club shall be
                                                  referenced service information at the FAA,              Vice President for Government Affairs &               equal; no part of the net earnings of the club
                                                  Small Airplane Directorate, 901 Locust,                 Advocacy wrote to the FAA’s Director of               will inure to the benefit of any individual in
                                                  Kansas City, Missouri 64106. For information                                                                  any form, including salaries, bonuses, etc.
                                                  on the availability of this material at the
                                                                                                          the Office of Airport Compliance and
                                                                                                                                                                The flying club may not derive greater
                                                  FAA, call (816) 329–4148. In addition, you              Management Analysis proposing
                                                                                                                                                                revenue from the use of its aircraft than the
                                                  can access this service information on the              revisions to FAA’s current policy                     amount needed for the operation,
                                                  Internet at http://www.regulations.gov by               regarding compensation for flight                     maintenance, and replacement of its aircraft.
                                                  searching for and locating Docket No. FAA–              instructors and persons maintaining                   FAA Order 5190.6B at para. 10(6)(b).
                                                  2015–7777.                                              aircraft within the context of flying club
                                                     (5) You may view this service information            operations. AOPA stated in its letter that               The Order also notes that ‘‘flying
                                                  that is incorporated by reference at the                it sought ‘‘to help current flying clubs              clubs may not offer or conduct . . .
                                                  National Archives and Records                           and airport sponsors comply with the                  aircraft rental operations. They may
                                                  Administration (NARA). For information on                                                                     conduct aircraft flight instruction for
                                                  the availability of this material at NARA, call
                                                                                                          FAA guidance outlined in 5190.6B, and
                                                  202–741–6030, or go to: http://                         to provide future flying clubs the                    regular members only, and only
                                                  www.archives.gov/federal-register/cfr/ibr-              opportunity to strengthen and unify                   members of the flying club may operate
                                                  locations.html.                                         general aviation pilots.’’ AOPA said that             the aircraft.’’ FAA Order 5190.6B at
                                                                                                          its goal is ‘‘to provide guidance that is             para. 10.6(c)(1). The Order also states
                                                     Issued in Kansas City, Missouri, on March
                                                  7, 2016.                                                attainable and ensures educated                       that ‘‘no flying club shall permit its
                                                                                                          compliance from all airport users,’’ and              aircraft to be used for flight instruction
                                                  Pat Mullen,
                                                                                                          asked for ‘‘updated guidance regarding                for any person, including members of
                                                  Acting Manager, Small Airplane Directorate,                                                                   the club owning the aircraft, when such
                                                  Aircraft Certification Service.
                                                                                                          compensation for flight instructors and
                                                                                                          maintainers’’ because ‘‘flight instructors            person pays or becomes obligated to pay
                                                  [FR Doc. 2016–05509 Filed 3–14–16; 8:45 am]
                                                                                                          and aviation mechanics are valuable                   for such instruction. FAA Order
                                                  BILLING CODE 4910–13–P                                                                                        5190.6B at para. 10.6(c)(3). An
                                                                                                          assets to the aviation industry, and
                                                                                                          should be granted the privilege of fair               exception applies when the instruction
                                                                                                          compensation for their efforts on a local             is given by a lessee based on the airport
                                                  DEPARTMENT OF TRANSPORTATION
                                                                                                          level.’’                                              who provides flight training and the
                                                  Federal Aviation Administration                            AOPA proposes clubs be permitted to                person receiving the training is a
                                                                                                          compensate member flight instructors                  member of the flying club. Id. Flight
                                                  14 CFR Chapter I                                        and member mechanics for services                     instructors who are also club members
                                                                                                          rendered to the club or club members.                 may not receive payment for instruction
                                                  [Docket No. FAA–2015–2022]                              Such compensation, AOPA suggests,                     except that they may be compensated by
                                                                                                          should be monetary or in the form of                  credit against payment of dues or flight
                                                  Petition of the Aircraft Owner and                                                                            time’’ and that ‘‘any qualified mechanic
                                                                                                          credit against payment of dues or flight
                                                  Pilots Association (AOPA) To Amend                                                                            who is a registered member and part
                                                                                                          time.
                                                  FAA Policy Concerning Flying Club                          The FAA requested comments on                      owner of the aircraft owned and
                                                  Operations at Federally Obligated                       whether AOPA’s recommendations are                    operated by a flying club may perform
                                                  Airports                                                consistent with the FAA’s general                     maintenance work on aircraft owned by
                                                  AGENCY:  Federal Aviation                               policies regarding commercial                         the club. The flying club may not
                                                  Administration (FAA), DOT.                              aeronautical services and on-airport                  become obligated to pay for such
                                                  ACTION: Final policy.                                   flying clubs, and if so, whether the                  maintenance work except that such
asabaliauskas on DSK3SPTVN1PROD with RULES




                                                                                                          stated agency policy on flying clubs                  mechanics may be compensated by
                                                  SUMMARY:   The policy statement clarifies               should be revised to amend its                        credit against payment of dues or flight
                                                  the FAA’s policy interpretation                         definition of flying clubs. In particular,            time.’’ Flying clubs are defined in such
                                                  regarding the operation of flying clubs at              the FAA sought comments from                          a way as to differentiate from for-profit
                                                  federally-obligated airports.                           commercial service providers that                     aeronautical businesses offering
                                                  Specifically, this policy statement                     engage in flight training and aircraft                aeronautical services to general public,
                                                  amends FAA Order 5190.6B, Airport                       rental, from associations representing                e.g., FBOs, flight schools and aircraft
                                                  Compliance Requirements, Section 10.6                   such service providers, and other                     rental providers.


                                             VerDate Sep<11>2014   16:19 Mar 14, 2016   Jkt 238001   PO 00000   Frm 00007   Fmt 4700   Sfmt 4700   E:\FR\FM\15MRR1.SGM   15MRR1


                                                  13720              Federal Register / Vol. 81, No. 50 / Tuesday, March 15, 2016 / Rules and Regulations

                                                    The owner of any federally-obligated                  at Air Venture 2015’’. The remaining                  They also believe a flying club should
                                                  airport (airport sponsor) is required by                seven airport users submitted individual              not be classified as a commercial
                                                  the sponsor grant assurances to operate                 comments. Two industry groups                         operator. FSANA supports
                                                  that airport for the use and benefit of the             submitted comments: Flight School                     compensation for certificated flight
                                                  public and to make that airport available               Association of North America (FSANA)                  instructors and mechanics as long as
                                                  to all types, kinds, and classes of                     and National Air Transportation                       flying clubs serve the needs of their
                                                  aeronautical activity on fair and                       Association of North America (NATA).                  members and not promote their services
                                                  reasonable terms, without unjust                        FSANA is a membership-based                           to the general public and do not
                                                  discrimination.                                         association representing flight schools               compete with commercial operators.
                                                                                                          and firms involved in flight training.                FSANA encouraged the FAA to create
                                                  II. AOPA Proposal                                       NATA is an organization representing                  awareness and enforce transparency for
                                                     AOPA states that its                                 the interest of aviation businesses such              the flying club community and airport
                                                  recommendations are designed to                         as aircraft fueling, maintenance, parts               sponsors to ensure that flying clubs do
                                                  promote flying clubs by allowing flight                 sales, storage, rental, airline servicing,            not compete with commercial operators
                                                  instructors and mechanics who are club                  flight training, Part 135 on-demand air               and promote themselves to the general
                                                  members to receive monetary                             charter, and fractional aircraft program              public.
                                                  compensation for services conducted for                 management.                                              NATA recognizes AOPA’s initiative is
                                                  other club members or club aircraft:                       Forty-three airport users offered                  intended to increase public interest in
                                                                                                          support of both AOPA Policy Proposals:                flying by strengthening flying clubs. Of
                                                  AOPA Policy Proposal Item 1                             An individual commenter believes that                 concern to NATA are those entities that
                                                     ‘‘No flying club shall permit its aircraft to        the policy change would provide an                    classify themselves as flying clubs but
                                                  be used for flight instruction for any person,          incentive for pilots who belong to flying             are commercial aviation businesses thus
                                                  including members of the club owning the                clubs to remain current and continue                  avoiding compliance with an airport
                                                  aircraft, when such person pays or becomes              their education in a convenient, cost-                sponsor’s minimum standards. NATA
                                                  obligated to pay for such instruction except
                                                                                                          effective, and familiar environment.                  asserts that flying clubs that offer their
                                                  in the following circumstances; (a) The flight
                                                  instruction is provided to a club member by             Another commenter indicated that small                services to the general public should not
                                                  a commercial operator authorized by the                 airports rely on flying clubs because                 be able to enjoy the protection of a non-
                                                  airport sponsor to provide flight instruction           there is not enough business activity to              profit flying club to avoid complying
                                                  on field. (b) The flight instruction is provided        support a flight school. This commenter               with an airport’s minimum standards.
                                                  to a club member by a flight instructor who             is an inactive pilot because there is no              NATA does not object to either of
                                                  is also a club member that is in good                   aircraft rental or flight training available          AOPA’s proposals but recommends that
                                                  standings according to the club bylaws. In              at the airport. However, the club at a                CFIs and mechanics receive either (1)
                                                  either case, the flight instructor may receive          local airport has several certificated                monetary compensation or (2)
                                                  monetary compensation; however the flying
                                                  club is prohibited from holding itself out to
                                                                                                          flight instructors (CFI). Many CFIs have              discounted/waived regular club member
                                                  the public as a fixed based operator, a                 full time jobs and are not interested in              dues or flying time, but not both. NATA
                                                  specialized aviation service operation, or a            donating their evenings and weekends                  believes that without such a restriction,
                                                  flight school. In the case of (b) above, the            without compensation. The president of                outside instructors or mechanics could
                                                  Airport Sponsor has the right to limit flight           a nonprofit flying club at Skyhaven                   receive waived dues and monetary
                                                  instruction for monetary compensation but               Airport in Rochester, New Hampshire,                  compensation for performing work
                                                  must permit the club to compensate club                 indicates that the airport does not have              without ever having invested in the club
                                                  instructors with credit against payment of              a flight school. None of the club                     as would a bona-fide member. NATA
                                                  dues or flight time.’’                                  members can receive proficiency                       suggests that the policy change with
                                                  AOPA Policy Proposal Item 2                             checkouts or additional training in club              these limitations will be beneficial and
                                                                                                          aircraft without violating the airport’s              will create a more level playing field.
                                                     ‘‘Any qualified mechanic who is a member                                                                      FSANA and NATA suggest that any
                                                                                                          policy. There are several CFIs in the
                                                  of the flying club may perform maintenance
                                                                                                          community that would join the club if                 clarification of the policy should
                                                  work on aircraft owned or exclusively used
                                                  by the flying club. The flying club may not             they could be compensated.                            emphasize that (1) flying clubs should at
                                                  become obligated to pay for such                           Supporters of the AOPA proposal                    no time hold themselves out as fixed
                                                  maintenance work except that such                       believe the proposed policy change                    based operators, flight schools, or as
                                                  mechanics may be compensated not to                     would (1) provide enhanced                            businesses at which people can learn to
                                                  exceed a reasonable rate for the work                   opportunities for students to fulfill their           fly; and (2) CFIs and mechanics should
                                                  performed at the discretion of club members.            educational needs in surroundings they                be permitted to receive monetary
                                                  The club however may not hold out to the                find appealing and accessible; (2)                    compensation as long as flying clubs of
                                                  public as operating as a fixed base operator,           provide incentive for pilots who are                  which they are members meet adequate
                                                  a specialized aviation service operation, or            members of flying clubs to remain                     criteria, which may include the airport
                                                  maintenance facility. The Airport Sponsor
                                                  has the right to limit maintenance work for
                                                                                                          current; and (3) create additional                    sponsor’s authorization and/or sponsor-
                                                  monetary compensation but must permit the               opportunities and incentives for                      imposed conditions. FSANA and NATA
                                                  club to compensate club mechanics with                  certificated flight instructors to actively           also recommended that flying clubs
                                                  credit against payment of dues or flight                participate in flying clubs.                          must not indicate in any form of
                                                  time.’’                                                    A commenter is opposed to a change                 marketing and/or communications that
                                                                                                          in policy. He believes it will weaken                 they are a flight school, and flying clubs
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                                                  III. Comments Received                                  ‘‘for profit’’ flight schools which have              must not indicate in any form of
                                                     The FAA received comments from 44                    suffered financially for the past eight               marketing and/or communications that
                                                  airport users including flight                          years.                                                they are a business where people can
                                                  instructors, pilots and flying club                        FSANA believes that flying clubs can               learn to fly.
                                                  members. Thirty-seven of the airport                    be a positive asset to the community.
                                                  users were flying club members who                      FSANA recognizes that flying clubs that               IV. Final Policy Changes
                                                  submitted a letter identifying                          are not for profit have a business                      FAA’s primary concern is that flying
                                                  themselves as ‘‘Flying Club Participants                advantage over for profit flight schools.             clubs operating at federally-obligated


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                                                                     Federal Register / Vol. 81, No. 50 / Tuesday, March 15, 2016 / Rules and Regulations                                               13721

                                                  airports must conform to the FAA                        sponsor’s actions are consistent with its             communications that they are a flight
                                                  definition found in FAA Order 5190.6B,                  grant assurances, specifically Grant                  school, and Flying Clubs must not
                                                  paragraph 10.6. As stated, the Order                    Assurance 22, Economic                                indicate in any form of marketing and/
                                                  defines ‘‘a flying club as a nonprofit or               Nondiscrimination.                                    or communications that they are a
                                                  not-for-profit entity (e.g., corporation,                  FAA’s policy regarding flying clubs is             business where people can learn to fly.
                                                  association, or partnership) organized                  amended by revising FAA Order                           Issued in Washington, DC, on March 9,
                                                  for the express purpose of providing its                5190.6B paragraphs 10.6(c)(3) and (4)                 2016.
                                                  members with aircraft for their personal                and by adding paragraphs 10.6 (c)(8)                  Byron Huffman,
                                                  use and enjoyment only.’’ In addition,                  and (9):
                                                                                                                                                                Acting Director, Office of Airport Compliance
                                                  the ownership of the club aircraft must                    b. General The ownership of the
                                                                                                                                                                and Management Analysis.
                                                  be vested in the name of the flying club                club aircraft must be vested in the name
                                                                                                                                                                [FR Doc. 2016–05833 Filed 3–14–16; 8:45 am]
                                                  or owned by all its members, the                        of the flying club or owned by all its
                                                                                                                                                                BILLING CODE 4910–13–P
                                                  property rights of the members of the                   members. The property rights of the
                                                  club shall be equal and no part of the                  members of the club shall be equal; no
                                                  net earnings of the club will inure to the              part of the net earnings of the club will
                                                  benefit of any individual in any form,                  inure to the benefit of any individual in             DEPARTMENT OF HOMELAND
                                                  including salaries, bonuses, etc. These                 any form, including salaries, bonuses,                SECURITY
                                                  flying clubs can be distinguished from                  etc. The flying club may not derive
                                                                                                          greater revenue from the use of its                   U.S. Customs and Border Protection
                                                  commercial service providers that use
                                                  the term ‘‘flying club’’ to describe their              aircraft than the amount needed for the
                                                                                                          operation, maintenance and                            DEPARTMENT OF THE TREASURY
                                                  operation in order to avoid having to
                                                  comply with the airport’s minimum                       replacement of its aircraft.
                                                                                                             (c)(3). A flying club may permit its               19 CFR Part 12
                                                  standards for commercial service
                                                  providers Those ‘‘flying clubs’’ do not                 aircraft to be used for flight instruction            [CBP Dec. 16–05]
                                                  conform to the FAA definition and put                   in a club-owned aircraft as long as both
                                                                                                                                                                RIN 1515–AE08
                                                  other commercial aeronautical service                   the instructor providing instruction and
                                                  providers at an economic disadvantage.                  person receiving instruction are                      Extension of Import Restrictions
                                                  Generally, they hold themselves out to                  members of the club owning the aircraft,              Imposed on Certain Archaeological
                                                  the public as alternatives to traditional               or when the instruction is given by a                 and Ethnological Materials From the
                                                  flight schools and aircraft rental                      lessee based on the airport who                       Republic of Colombia
                                                  providers, and charge only nominal                      provides flight training and the person
                                                  annual ‘‘club fees.’’                                   receiving the training is a member of the             AGENCY:  Customs and Border Protection,
                                                     FAA policy will emphasize three                      flying club. In either circumstance, a                Department of Homeland Security;
                                                  points: (1) Flying clubs should at no                   flight instructor may receive monetary                Department of the Treasury.
                                                  time hold themselves out as fixed based                 compensation for instruction or may be                ACTION: Final rule.
                                                  operators, flight schools, or as                        compensated by credit against payment
                                                  businesses offering services to the                     of dues or flight time; however that                  SUMMARY:     This document amends the
                                                  general public; and (2) CFIs and                        individual may not receive both                       U.S. Customs and Border Protection
                                                  mechanics should be permitted to                        compensation and waived or discounted                 (CBP) regulations to reflect the
                                                  receive either monetary compensation                    dues or flight time concurrently. The                 extension of import restrictions on
                                                  or discounted/waived regular club                       airport sponsor may set limits on the                 certain archaeological and ethnological
                                                  member dues but not both; (3) flying                    amount of instruction that may be                     materials from the Republic of Colombia
                                                  clubs must not indicate, in any form of                 performed for compensation.                           (‘‘Colombia’’). The restrictions, which
                                                  marketing and/or communications, that                      (c)(4). A qualified mechanic who is a              were originally imposed by CBP
                                                  they are a flight school and flying clubs               registered member and part owner of the               Decision (Dec.) 06–09 and extended by
                                                  must not indicate in any form of                        aircraft owned and operated by a flying               CBP Dec. 11–06, are due to expire on
                                                  marketing and/or communications that                    club may perform maintenance work on                  March 15, 2016. The Assistant Secretary
                                                  they are a business where people can                    aircraft owned by the club. The                       for Educational and Cultural Affairs,
                                                  learn to fly. FAA agrees with NATA that                 mechanic may receive monetary                         United States Department of State, has
                                                  flight instructors and mechanics should                 compensation for such maintenance                     determined that factors continue to
                                                  be bona-fide club members paying dues                   work or may be compensated by credit                  warrant the imposition of import
                                                  as a condition to receiving                             against payment of dues or flight time;               restrictions and no cause for suspension
                                                  compensation for services or a bona-fide                however that individual may not receive               exists. Accordingly, these import
                                                  member receiving a discount or waiver                   both compensation and waived or                       restrictions will remain in effect for an
                                                  of dues with no compensation. To offer                  discounted dues or flight time                        additional five years, and the CBP
                                                  both compensation and discounted/                       concurrently. The airport sponsor may                 regulations are being amended to reflect
                                                  waived dues may result in abuse and                     set limits on the amount of maintenance               this extension until March 15, 2021.
                                                  the use of outside instructors and                      that may be performed for                             These restrictions are being extended
                                                  mechanics who have no investment of                     compensation.                                         pursuant to determinations of the
                                                  time or commitment to the club.                            (c)(8). Flying Clubs may not hold                  United States Department of State made
                                                  Additionally, FAA agrees with NATA                      themselves out to the public as fixed                 under the terms of the Convention on
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                                                  and FSANA that flying clubs must                        based operators, a specialized aviation               Cultural Property Implementation Act
                                                  distinguish themselves from other                       service operation, maintenance facility               that implemented the United Nations
                                                  aeronautical service providers.                         or a flight school and are prohibited                 Educational, Scientific and Cultural
                                                     FAA expects that sponsors of                         from advertisements as such or be                     Organization (UNESCO) Convention on
                                                  federally-obligated airports will take                  required to comply with the appropriate               the Means of Prohibiting and Preventing
                                                  appropriate action to ensure that                       airport minimum standards.                            the Illicit Import, Export and Transfer of
                                                  commercial operators and flying clubs                      (c)(9). Flying Clubs may not indicate              Ownership of Cultural Property. CBP
                                                  are properly classified, and the                        in any form of marketing and/or                       Dec. 06–09 contains the Designated List


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Document Created: 2016-03-15 04:07:32
Document Modified: 2016-03-15 04:07:32
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionFinal policy.
DatesThis action becomes effective April 4, 2016.
ContactMiguel Vasconcelos, Airport Compliance Division, ACO-100, Federal Aviation Administration, 800 Independence Avenue SW., Washington, DC 20591, telephone (202) 267-3085; facsimile: (202) 267-4620.
FR Citation81 FR 13719 

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