FAA: Pilots still confused about sharing flight expenses

The FAA has issued a reminder to pilots about the legal way to share flight expenses.

Agency officials note that the “unauthorized 135 operations continue to be a problem nationwide, putting the flying public in danger, diluting safety in the national airspace system, and undercutting the business of legitimate operators.”

They note there are two ongoing issues:

1. The misuse and misunderstanding of expense sharing between pilots and passengers, and
2. The apparent lack of understanding of pilot privileges and limitations versus operating rules.

“As a general rule, private pilots may neither act as PIC of an aircraft for compensation or hire nor act as PIC of an aircraft carrying persons or property for compensation or hire,” say FAA officials, pointing pilots to 14 C.F.R. § 61.113(a).

Go a bit further and you’ll see that Section 61.113(b) through (h) contains seven exceptions to this general prohibition against private pilots acting as PIC for compensation or hire.

“One commonly misapplied provision is the expense sharing exception contained in § 61.113(c), which permits a pilot to share the operating expenses of a flight with passengers provided the pilot pays at least his or her pro rata share of the operating expenses of that flight,” FAA officials noted.

Allowable expenses are “strictly limited to fuel, oil, airport expenditures, or rental fees.”

“In addition, only reimbursement from the passengers is allowed,” FAA officials said.

Pilots must also remember if they want to share expenses they must not “hold out” to the public because that would put them into the realm of common carriage. Hold out means showing a willingness to transport people or property from one place to another for compensation or hire, officials explain. That’s mean pilots can’t advertise on an Internet forum or other public place that they are open to sharing expenses.

General aviation pilots also must remember the “common purpose test,” according to FAA officials.

That means you have a reason for traveling to the destination — you aren’t simply transporting passengers as a means to build flight time.

FAA officials give this example:

A private pilot is flying to Stillwater, Oklahoma, to visit her mother in the hospital over the weekend. Five of her friends would be coming with her to attend a football game that same weekend. She CAN legally share expenses because she has a reason to fly to Stillwater (visit her mother) not simply to transport her friends.

Expanding the same scenario: If she has too many friends going to the football game that she has to make a second trip to pick up the rest, she CANNOT legally share expenses on the second trip because her purpose for flying to Stillwater was complete when she arrived the first time. The second flight was solely for the transportation of passengers.

Distinction Between Pilot Privileges and Operational Rules

“It has come to the attention of the FAA that, in general, pilots do not know or completely understand that the privileges and limitations of their certificates are separate and distinct from the operational rules required to conduct a flight,” FAA officials continue.

What does that mean? Pilot certification rules vs. operational rules.

A person who holds an ATP certificate or a commercial pilot certificate may act as PIC of an aircraft operated for compensation or hire and may carry persons or property for compensation or hire.

However, there’s more to it than that.

A commercial pilot or ATP must meet the qualification requirements not only of Part 61 but also the part under which the operation is conducted. Additionally, the operator must hold the proper operating authority.

For instance, most operations involving the carriage of persons for compensation require the operator to hold a certificate under Part 119 authorizing such operations to be conducted under part 135 or 121. (See 14 C.F.R. §§ 119.1 et seq., 135.1, and 121.1, and definitions codified at § 110.2)

For a flight operating under Part 135 or 121, a pilot must meet additional qualification requirements, such as training, checking, and experience requirements.

What does that mean? Before conducting a flight, a pilot must determine what operational rules the flight is conducted under, whether the operator has the appropriate operational certification (a part 119 certificate), and whether the pilot has the required qualifications.

Unless a valid exception from operational certification rules applies, pilots cannot engage in common carriage, e.g., holding out, unless they are operating in accordance with an air carrier certificate or commercial operating certificate.

But pilots who hold ATP and commercial certficates remain confused, according to FAA officials.

For example, during a conversation between an experienced Part 135 pilot and an Aviation Safety Inspector (ASI), the pilot said, “Doesn’t Part 61 (61.133) say that a commercial pilot can transport persons or property for hire?”

The ASI answered “Yes…but what does the rest of the sentence say?” …provided the person is qualified in accordance with the applicable parts of this chapter that apply to the operation…” The ASI then asked “Do you fly under Part 61 or under an operating rule such as Part 91 or Part 135?” The pilot suddenly replied, “Ohhhh! I see. Part 61 is privileges and limitations, but we also have to comply with the operating rules. Got it!”

Commercial and ATP pilots should also remember that although these certificates allow them to receive compensation and operate aircraft carrying people for compensation or hire, they themselves cannot hold out to the public unless they have been issued a Part 119 certificate. (See Legal Interpretation from 2014 that explains this).

Still have questions about sharing expenses? FAA officials suggest you review these FARs, Advisory Circulars, and Legal Interpretations.

You also can contact your local Flight Standards District Office for assistance or seek the advice of a qualified aviation attorney, FAA officials advise.