Aircraft brokers play a critical role in the private aviation industry, acting as intermediaries between clients and operators to arrange private jet charters. However, to maintain professionalism and ethical integrity, brokers must fully understand the Federal Aviation Administration (FAA) regulations governing private aviation—specifically, FAA Part 135 and Part 91. This knowledge is essential to ensure all charter flights are legal and safe. Failure to adhere to these regulations can have severe consequences for brokers, operators, and passengers.

The Basics of FAA Part 135 and Part 91

FAA Part 135 governs commercial operations, including air charter services. Operators under Part 135 are required to meet stringent safety, maintenance, and operational standards. These include:

• Regular aircraft inspections and maintenance schedules.

• Specific training and certification for pilots.

• Flight duty and rest time limitations for crews.

• Operational control procedures to ensure the operator maintains authority over the flight.

• Valid air operator certificates (AOCs).

FAA Part 91 applies to non-commercial operations, typically for private aircraft owned and operated by individuals or companies for personal use. Part 91 regulations are less restrictive than Part 135, allowing more flexibility for owners to operate their aircraft without the stringent oversight required for commercial flights. However, Part 91 flights cannot be legally sold to third parties as charter services.

The Gray Area Between Part 91 and Part 135

Some brokers exploit the regulatory differences between Part 91 and Part 135 to offer cheaper flights. This practice is commonly referred to as engaging in "gray charter" operations. In these scenarios, a broker or operator markets a Part 91 flight as if it were a legitimate charter, bypassing the regulatory and cost burdens of Part 135 compliance.

Key Examples of Gray Charter Operations:

1. Dry Leasing Arrangements: Leasing an aircraft without a crew and then "coordinating" crew services separately to mimic a charter.

2. Owner-Operated Flights: Arranging flights where the owner agrees to transport passengers for compensation, in violation of Part 91 regulations.

3. Fractional Ownership Schemes: Misrepresenting fractional ownership programs to avoid Part 135 requirements.

While these arrangements may seem cost-effective, they are highly risky and illegal. They compromise safety and expose both brokers and clients to significant legal and financial liabilities.

Consequences for Brokers

Brokers involved in illegal charter operations face severe repercussions:

1. Legal Penalties:

   • Heavy fines imposed by the FAA.

   • Potential criminal charges for knowingly arranging illegal flights.

2. Reputation Damage:

   • Loss of trust from clients and operators.

   • Permanent damage to professional credibility.

3. Civil Liability:

   • Brokers may be held liable for damages in the event of an accident or incident involving an illegal charter.

4. Blacklisting:

   • Brokers found guilty of arranging illegal charters can be blacklisted by reputable operators and industry platforms.

How Brokers Can Avoid Illegal Charters

To ensure compliance with FAA regulations and maintain a professional reputation, brokers should adopt the following best practices:

1. Verify Operator Credentials:

   • Always confirm that the operator holds a valid Part 135 certificate.

   • Request copies of the operator’s AOC, Certificate of Insurance (COI), and DO85 (list of approved aircraft and crew).

2. Understand the Difference Between Part 91 and Part 135:

   • Familiarize yourself with the operational, safety, and legal distinctions between the two.

   • Never market or arrange a Part 91 flight as a charter.

3. Conduct Due Diligence on Operators:

   • Work only with trusted and reputable operators.

   • Avoid operators with a history of compliance violations.

4. Educate Clients:

   • Inform clients about the risks and legal implications of gray charters.

   • Explain the value of safety and regulatory compliance in Part 135 operations.

5. Establish Internal Compliance Protocols:

   • Develop clear policies and procedures for verifying operator credentials.

   • Train your team on regulatory requirements and ethical practices.

6. Report Suspicious Activity:

   • If you encounter an operator or broker engaging in illegal practices, report it to the FAA.