Fractional Ownership Compliance

FAR 91.1002 — Fractional Ownership Compliance

FAR 91.1002 sets the Feb 17, 2005 deadline for pre-existing fractional ownership programs to obtain management specifications under Part 91 Subpart K.

In Plain English

FAR 91.1002 is a transition rule for fractional ownership programs — the shared-aircraft arrangements defined in § 91.1001. It set a hard deadline for operators that were already running these programs before the rule existed.

Here's what it says in plain terms:

If an operator was conducting fractional ownership flights before November 17, 2003, they were grandfathered in temporarily.
After February 17, 2005, those operators could no longer continue flying under the program unless they had obtained management specifications (often called "MSpecs") under Subpart K of Part 91.

Why it matters operationally: When the FAA created Subpart K to regulate fractional ownership, it didn't shut down existing programs overnight. Instead, it gave them roughly 15 months to come into compliance by getting FAA-issued management specifications. After the cutoff, operating without MSpecs would be illegal. For students, this rule is mostly historical context — it's the reason every active fractional program today operates under formal Subpart K authorization.

Regulation Text

14 CFR § 91.1002

§ 91.1002 Compliance date. No person that conducted flights before November 17, 2003 under a program that meets the definition of fractional ownership program in § 91.1001 may conduct such flights after February 17, 2005 unless it has obtained management specifications under this subpart. [Docket FAA-2001-10047, 68 FR 54561, Sept. 17, 2003; 69 FR 74413, Dec. 14, 2004]

Oral Exam Questions a DPE Might Ask

Q1What is the significance of February 17, 2005 for fractional ownership programs?

Per FAR 91.1002, that was the deadline for any operator conducting fractional ownership flights before November 17, 2003 to obtain management specifications under Subpart K — after that date, they could not continue flying without them.

Q2Can a pre-existing fractional ownership program operate today without management specifications?

No. FAR 91.1002 prohibits any such program from conducting flights after February 17, 2005 unless it has obtained management specifications under Subpart K of Part 91.

Q3Where is the term 'fractional ownership program' defined for purposes of FAR 91.1002?

FAR 91.1002 references the definition in § 91.1001, which establishes what qualifies as a fractional ownership program under Subpart K.

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Related Sections in Part 91