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FAA Extends And Adds To NBAA Small Aircraft Exemptions

Highlights

  • FAA extended the NBAA Small Aircraft Exemption until March 31, 2022, with additional requirements

  • NBAA Small Aircraft Exemption still applies to operators of certain U.S. registered aircraft 

  • FAA now requires operators using the exemption to file a Notice of Joinder to FAA Exemption Number 7897K

The Federal Aviation Administration (FAA) has had a long-standing exemption allowing National Business Aviation Association (NBAA) members operating smaller aircrafts to conduct operations that would otherwise be limited to large aircrafts under FAR Part 91 501(b)

Smaller aircraft include helicopters and general aircraft with a gross takeoff weight of less than 12,000 pounds. Permitted operations include time sharing agreements, interchange agreements and joint ownership agreements. 

The FAA has extended the NBAA Small Aircraft Exemption to March 31, 2022.

In addition, effective Sept. 27, 2020, aircraft being operated under the NBAA exemption must also file a “Notice of Joinder to FAA Exemptions No. 7897k” electronically to the FAA by following the online instructions for submitting documents accordingly. 

Also, under the exemption, companies are allowed to qualify for the so-called FAA Affiliated Group exemption where a parent or subsidiary can charge for the use of an aircraft up to the total cost of owning and operating the aircraft.

All those identified in the Notices of Joinder to FAA exemption No. 7897k will be included in the list of NBAA members authorized to exercise the privilege under the NBAA exemption.

The FAA has also concluded (after review) that the NBAA exemption would be in compliance with International Civil Aviation Organization (ICAO) Standards. Accordingly, the FAA is adding a new condition on limitation No. 6 to allow NBAA members to operate outside of the U.S. under the exemption, unless otherwise prohibited by a foreign country. 

Requirements for Filing the Notice

The Notice of Joinder to FAA Exemption No. 7897k must include all of the following:

  1. The person’s name and, for a person other than an individual, the name of the authorized representative submitting the notice

  2. The person’s physical address and, for a person other than an individual, the physical address for the authorized representative. If the person or the authorized representative does not receive mail at the physical address provided, a mailing address must also be provided. 
     
  3. The person’s email address or, for applicants other than individuals, the email address of the authorized representative
     
  4. The person’s telephone number(s)
     
  5. The person’s NBAA membership number
     
  6. A statement requesting the FAA appends the Notice of Joinder to the list of NBAA members authorized to exercise the privileges of Exemption No. 7897K
     
  7. An attestation that the person will not conduct any operation under Exemption No. 7897K if the person ceases to be a member of NBAA
     
  8. An attestation that the person will comply with all conditions and limitations of Exemption No. 7897K

The NBAA will provide a form via the website to members so they can easily comply with the new requirements; it is expected the form will be available prior to the Sept. 27 effective date.

© 2020 BARNES & THORNBURG LLPNational Law Review, Volume X, Number 226

TRENDING LEGAL ANALYSIS


About this Author

Todd Dixon Commercial Litigation & Aviation Attorney
Associate

Todd A. Dixon is an attorney in Barnes & Thornburg's Grand Rapids and Indianapolis offices and focuses his practice on commercial litigation and aviation law.

Todd's practice encompasses a wide variety of aviation law practice areas. He has structured aviation transactions, including domestic and foreign-based aircraft purchase and sale transactions, like-kind exchanges, timeshare agreements, interchange agreements, joint and fractional ownership agreements, personal and executive use policies, FAA registrations, Capetown International Registry, and aircraft leasing transactions...

317-231-7352
Clifford G. Maine, Barnes Thornburg Law Firm, Grand Rapids, Corporate Law Attorney
Partner

Clifford G. Maine is chairman of the firm’s Aviation Law Group. Mr. Maine's practice encompasses a wide variety of aviation law practice areas. He serves as general counsel to numerous aviation organizations, including the Southwest Michigan Regional Airport Authority.

Mr. Maine’s aviation clients include some of the largest corporate flight departments in the world. He has structured numerous aviation transactions, including domestic and foreign-based aircraft purchase and sale transactions, like-kind exchanges, timeshare agreements, interchange agreements, joint and fractional ownership agreements, personal and executive use policies, FAA registrations, Capetown International Registry, and aircraft leasing transactions. Mr. Maine also provides legal counsel on tax-related aviation issues including federal excise tax planning, state sales and use tax planning, and depreciation planning.

In addition to his transactional practice, Mr. Maine regularly represents clients in complex aviation lawsuits and frequently advises on aviation insurance coverage matters, warranty matters, ongoing service requirements, and regulatory requirements.

He is a founding member and Chair of the Tax Committee of the National Business Aircraft Association and serves on the Board of Directors of the Michigan Business Aircraft Association. Mr. Maine also serves on the State Bar of Michigan Aviation Section (a section of the bar in which he acted as a founding member and past chairperson).

616-742-3944
Mary E. Comazzi Aviation and Unmanned Aerial Vehicles & Corporate Attorney Barnes & Thornburg Southfield, MI
Of Counsel

Mary Comazzi learned precisely what direction she wanted for her career by taking the right steps on the right course at the right time, and she strives to do the same for her clients. Mary’s general commercial and aviation clients appreciate her honesty, practicality and responsiveness in assessing their issues and helping address problems they are facing, in the air or on the ground.

Mary helps clients craft, negotiate and document mergers, acquisitions, reorganizations, joint ventures, and other complex commercial transactions. She also has extensive experience structuring...

947-215-1319