Prohibitions and limitations

This regulation sets three key restrictions on fractional aircraft ownership programs:

First, program flights generally cannot be used to carry people or property for compensation or hire, except under specific exceptions found in other regulations (§§91.321 and 91.501).

Second, owners cannot fly more hours than their ownership share entitles them to during their multi-year program agreement. For example, if you own a 1/16 share of an aircraft that flies 800 hours annually, you're limited to approximately 50 hours per year.

Third, program operators cannot sell ownership interests smaller than the "minimum fractional ownership interest" (defined elsewhere in the regulations) unless those flights operate under Part 121 or 135 with proper air carrier certification. This prevents programs from circumventing commercial operating requirements by selling tiny ownership shares that are really just charter flights in disguise.

These rules maintain the distinction between private operations and commercial air service, ensuring appropriate regulatory oversight based on the actual nature of the operation.

*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.*