Regulation Text
Each owner must have a contract with the program manager that—
(a) Requires the program manager to ensure that the program conforms to all applicable requirements of this chapter.
(b) Provides the owner the right to inspect and to audit, or have a designee of the owner inspect and audit, the records of the program manager pertaining to the operational safety of the program and those records required to show compliance with the management specifications and all applicable regulations. These records include, but are not limited to, the management specifications, authorizations, approvals, manuals, log books, and maintenance records maintained by the program manager.
(c) Designates the program manager as the owner's agent to receive service of notices pertaining to the program that the FAA seeks to provide to owners and authorizes the FAA to send such notices to the program manager in its capacity as the agent of the owner for such service.
(d) Acknowledges the FAA's right to contact the owner directly if the Administrator determines that direct contact is necessary.
Research Notes
Section 91.1003 — Management contract between owner and program manager — establishes the requirements for the contract between fractional aircraft owners and the program manager.
What must be in the contract:
- Identification of the aircraft
- Hours of use allocated to the owner
- Operational control framework
- The owner's responsibilities (basic — fuel, repositioning, etc.)
- The program manager's responsibilities (maintenance, crew, scheduling, training)
- Insurance and indemnification provisions
- Dispute resolution
Operational control allocation: The contract specifies who has operational control during a given flight. Typically the owner has operational control during their flights, with the program manager providing the operational infrastructure. The clear allocation is critical — without it, the operation may default to commercial Part 135 status.
Reference: AC 91-37B; FAA Order 8900.1 Volume 4 Chapter 11.
Amendment History
Amendment History Coming Soon
Every time this regulation changes, we'll record it here — the date, what was amended, and a plain-English summary of what shifted.