U.S. DOT Eases Foreign Ownership

The U.S. Department of Transportation (DOT) has relaxed restrictions on operations by aircraft that are U.S.-registered but considered to be foreign owned. The new Part 375 rule was introduced last month in response to a petition by the National Business Aviation Association (NBAA). The DOT has revised its previously held view that even if an aircraft is registered in the U. S., if the owner is not a U.S. citizen, then a corporate aircraft would be considered to be a “foreign civil aircraft.” Under the previous rule, many U.S.-registered foreign-owned aircraft had been required to obtain a “foreign aircraft permit” to use the joint-ownership, interchange and charge-back provision of FAR 91.501. The DOT now accepts that such uses do not constitute operations “for remuneration or hire” and therefore do not require a DOT permit.