Management contract between owner and program manager

If you own an aircraft operated under a fractional ownership program (Part 91 subpart K), you must have a written contract with your program manager that includes four key elements:

The contract must require the program manager to ensure the program follows all applicable FAA regulations. It must give you (or someone you designate) the right to inspect and audit the program manager's safety and compliance records, including management specifications, manuals, logbooks, and maintenance records.

The contract must designate the program manager as your legal agent to receive FAA notices on your behalf, allowing the FAA to communicate with the program manager instead of tracking down each individual owner. However, it must also acknowledge that the FAA retains the right to contact you directly when the Administrator deems it necessary.

This regulation establishes the formal relationship between aircraft owners and program managers, ensuring owners maintain oversight rights while streamlining FAA communication through a single point of contact.

*This is a plain-English summary for study only. The official 14 CFR text on this page is controlling — always read the current regulation and consult a CFI.*