Rule Eases Operations by Non-U.S.-owned Aircraft

Operations by U.S.-registered aircraft owned by a company not considered a U.S. citizen will be eased. Effective April 27, a new DOT Part 375 rule provides that certain types of operation by operators using U.S.-registered foreign civil business aircraft (such as carrying the company's own officials and guests, or aircraft time-sharing, interchange or joint ownership arrangements) do not constitute operations "for remuneration or hire and, therefore, do not require a DOT permit." The rule is in response to a petition by NBAA. Under existing rules, if a company that does not meet the definition of a citizen of the U.S. (for example, if its president is not a U.S. citizen) owns a corporate aircraft, that aircraft is considered to be a "foreign civil aircraft under Part 375, even if it is U.S. registered." As such, many U.S.-registered foreign-owned aircraft have been required to obtain a "foreign aircraft permit" to use the joint-ownership, interchange and charge-back provisions of FAR 91.501.