Regulation Text
(a) Definitions. For the purposes of this section, Operator means any person conducting nonstop passenger-carrying flights in an airplane, powered-lift, or rotorcraft for compensation or hire in accordance with §§ 119.1(e)(2), 135.1(a)(5), or 121.1(d) of this chapter that begin and end at the same airport and are conducted within a 25-statute mile radius of that airport.
(b) General requirements. An Operator conducting passenger-carrying flights for compensation or hire must meet the following requirements unless all flights are conducted under § 91.146. The Operator must:
(1) Comply with the safety provisions of part 136, subpart A of this chapter.
(2) Register and implement its drug and alcohol testing programs in accordance with part 120 of this chapter.
(3) Comply with the applicable requirements of part 5 of this chapter.
(4) Apply for and receive a Letter of Authorization from the responsible Flight Standards office.
(c) Letter of Authorization. Each application for a Letter of Authorization must include the following information:
(1) Name of Operator, agent, and any d/b/a (doing-business-as) under which that Operator does business.
(2) Principal business address and mailing address.
(3) Principal place of business (if different from business address).
(4) Name of person responsible for management of the business.
(5) Name of person responsible for aircraft maintenance.
(6) Type of aircraft, registration number(s), and make/model/series.
(7) Antidrug and Alcohol Misuse Prevention Program registration.
(d) Compliance. The Operator must comply with the provisions of the Letter of Authorization received.
[Docket FAA-2021-0419, Amdt. 91-374, 89 FR 33108, Apr. 26, 2024]
Research Notes
Section 91.147 provides a Part 91 exception for short, locally-departing-and-returning passenger flights for compensation or hire — known as the 'commercial sightseeing' or 'Letter of Authorization' (LOA) flights. Without this exception, sightseeing flights would require a Part 135 certificate, which is prohibitively complex.
What this allows: An operator with a Letter of Authorization from the local FSDO may conduct passenger-carrying flights for compensation or hire within a 25 nautical mile radius of the departure airport, returning to the same airport, in compliance with the listed restrictions.
The LOA process: The operator applies to the FSDO and must demonstrate compliance with Part 91 LOA requirements including drug and alcohol testing program (51% rule), passenger briefing procedures, and operational limitations. The LOA is annually renewed.
Operational limitations: The flight must depart from and return to the same airport. The 25 NM radius limit applies. The aircraft must conform to the LOA terms (typically the LOA specifies aircraft makes/models authorized). The pilot must be a commercial pilot with recent currency.
Drug and alcohol testing: Operators conducting LOA flights are subject to the DOT drug and alcohol testing requirements (49 CFR Part 40 plus 14 CFR Part 120) — even though they're not Part 135 certificate holders. This was a 2007 change after concerns about the 'commercial Part 91' loophole.
Common applications: Helicopter sightseeing tours at Grand Canyon (technically conducted under Part 135 air tour exception in some cases, but also LOA-authorized), fixed-wing tours at Sedona/Cape Cod/etc., banner tow operations (some operate under § 91.147 framework).
Reference: AC 91-37B; FAA Order 8900.1 Volume 5, Chapter 7.
Amendment History
Amendment History Coming Soon
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