FAR 91.1005 — Fractional Ownership Limitations
FAR 91.1005 explains prohibitions on fractional ownership program flights, hour limits, and rules for selling small aircraft interests under Part 91 Subpart K.
In Plain English
FAR 91.1005 sets the boundaries on what fractional aircraft owners can and cannot do under Subpart K. The rule covers three key restrictions:
- No compensation or hire: An owner may not carry persons or property for compensation or hire on a program flight, except where allowed by § 91.321 (charitable, nonprofit, community events) or § 91.501 (large/turbojet operations).
- Flight hour cap: During the multi-year program agreement, a fractional owner cannot fly more hours than the total associated with their share of ownership. You can't fly more than you bought.
- Minimum interest size: No one may sell or lease a fractional interest smaller than the minimum defined in § 91.1001(b)(10) unless those flights are conducted under Part 121 or 135 by a certificated air carrier or commercial operator.
This matters operationally because it draws the line between legitimate fractional ownership flying and illegal charter. If a share is too small or compensation is involved, the operation must move to a commercial certificate.
Regulation Text
14 CFR § 91.1005§ 91.1005 Prohibitions and limitations.
(a) Except as provided in § 91.321 or § 91.501, no owner may carry persons or property for compensation or hire on a program flight.
(b) During the term of the multi-year program agreements under which a fractional owner has obtained a minimum fractional ownership interest in a program aircraft, the flight hours used during that term by the owner on program aircraft must not exceed the total hours associated with the fractional owner's share of ownership.
(c) No person may sell or lease an aircraft interest in a fractional ownership program that is smaller than that prescribed in the definition of “minimum fractional ownership interest” in § 91.1001(b)(10) unless flights associated with that interest are operated under part 121 or 135 of this chapter and are conducted by an air carrier or commercial operator certificated under part 119 of this chapter.
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Oral Exam Questions a DPE Might Ask
Q1Can a fractional owner carry passengers for compensation on a program flight?
No. Per FAR 91.1005(a), an owner may not carry persons or property for compensation or hire on a program flight, except as permitted under § 91.321 or § 91.501.
Q2Is there a limit on how many hours a fractional owner can fly during the program agreement?
Yes. FAR 91.1005(b) limits flight hours used by the owner during the multi-year agreement to the total hours associated with that owner's share of ownership.
Q3What happens if someone wants to sell a fractional interest smaller than the minimum defined in § 91.1001?
Under FAR 91.1005(c), interests smaller than the minimum fractional ownership interest may only be sold or leased if the associated flights are operated under Part 121 or 135 by a certificated air carrier or commercial operator.
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Related Sections in Part 91