AOPA Pilot Magazine - July 2024 - 26

FOR THE RECORD
Special
considerations
It's a flight school! It's an FBO! It's a flying club!
BY IAN ARENDT
MANY PI LOTS WHO cannot justify the expense of owning their
own aircraft enjoy the benefits of flying clubs-or perhaps they
appreciate access to multiple aircraft, free or reduced cost flight
instruction, or the camaraderie that comes with these often-social
organizations. No matter the reason why aviators join flying clubs,
they are a great way to increase access to general aviation aircraft.
When it comes to their place at a public-use airport, the FAA
gives flying clubs special considerations. At first glance, flying clubs
often look like flight schools, aircraft rental companies, or other
FBOs. But flying clubs are not subject to the same standards as
these commercial enterprises. This is because FAA policy requires
federally obligated public-use airports to adhere to federal grant
assurances and deed restrictions. In short, airports that accept
money or that were deeded land by the federal government generally
must adhere to this policy or risk losing that money or land.
Much of this policy is contained in FAA Order 5190.6B. Section
10.6 applies to flying clubs. There, the FAA states, " A flying club
qualifies as an individual under the grant assurances " and " will not
be subject to commercial FBO requirements. " In other words, flying
clubs should not be subject to an airport's minimum standards
or the rules and regulations applicable to other commercial tenants.
This generally means flying clubs have access to hangars at a
lower rate, need not have office space or on-call personnel, need not
comply with often-onerous commercial insurance requirements,
and can provide their own fueling and maintenance. Further, flying
clubs can include nonpilots and student pilots in their membership
and allow club members to use club aircraft for flight instruction.
To take advantage of these special considerations, however, flying
clubs must carefully follow the requirements of Order 5190.6B
and the applicable airport rules and regulations. These rules require
that club aircraft must be owned or exclusively leased by the flying
club or all its members, that all club members must have equal property
rights, and that the club may not generate greater revenue than
needed for operation, maintenance, and replacement of its aircraft.
Additionally, the club must be a nonprofit entity " organized for the
express purpose of providing its members with aircraft for their personal
use and enjoyment only. " In a recent determination, the FAA
clarified that a flying club need not be an IRS tax-exempt organization-state-recognized
nonprofit status is enough. Flying clubs can
be required to demonstrate compliance with these requirements
and prove the club is a nonprofit organization.
26
AOPA PILOT / July 2024
Although previous FAA policy stated a flying club must
own its aircraft outright or share ownership equally among
all club members, in a separate determination, the FAA clarified
that, rather than owning an aircraft, a club may enter
into a long-term, exclusive lease for use of an aircraft. The
club, however, must not allow nonmembers to use or rent
the aircraft.
Because a flying club's express purpose is to provide aircraft
to its members for their personal use and enjoyment, a flying club
must keep a close watch on how its members use club aircraft. The
club aircraft cannot be used for any commercial purpose-like air
taxi, aerial photography, or pipeline patrol.
Failure to adhere to these strict guidelines
could lead to eviction from the field.
As to flight instruction, the club may allow its members to
provide flight instruction in the club's aircraft, but only to club
members. Similarly, club members may use the club's aircraft for
flight instruction. While the members are not obligated to use
flight instructors belonging to the club, the flight instructors must
be based on the field. In either circumstance, flight instructors can
charge for their time, but the airport can set reasonable limits on
the amount of instruction that may be performed for compensation.
A flying club must also be cautious when it comes to recruiting
new members. A flying club cannot represent that they are a
flight school or business where people can learn to fly. Nor may a
flying club hold themselves out as an aircraft rental company, FBO,
or maintenance facility.
Failure to adhere to these strict guidelines could force a club to
comply with burdensome commercial standards or worse, lead to
eviction from the field. Luckily, AOPA is here to help prospective
flying clubs navigate these issues with its You Can Fly Flying Clubs
Initiative. Additionally, members
with Pilot Protection Services
can reach out to the AOPA
Legal Services Plan for help.
ian.arendt@aopa.org
aopa.org/pps
IAN ARENDT is an in-house
attorney with AOPA's Legal
Services Plan and a private
pilot who owns a Piper
PA-12 Super Cruiser.
http://www.aopa.org/pps
AOPA Pilot Magazine - July 2024

Table of Contents for the Digital Edition of AOPA Pilot Magazine - July 2024
