Other News

RIAG responds to questions about new federal rule for air charter brokers

The National Business Aviation Association’s (NBAA) Regulatory Issues Advisory Group (RIAG) has assembled a list of answers to commonly asked questions about the new federal rule for air charter brokers.

The rule, which came into effect on February 14 2019, establishes a new 14 Code of Federal Regulations (CFR) part 295, air charter brokers, and revises 14 CFR 298, exemptions for air taxi and commuter air carrier operations.

Brian Koester, senior manager for flight operations and regulations, said: “We want to thank the RIAG for putting this resource together. We hope it helps the industry by providing clarity to a rule that’s been in the works for more than 10 years.”

The rule formally defines air charter brokers and is applicable not only to those acting as principals but also to bona fide agents of either the air carrier or the passenger. Brokers and air carriers may be required to provide a full refund in the event of a failure to provide required disclosures within a reasonable time period.

Brokers must clearly and conspicuously state in advertising and marketing materials that they are air charter brokers and not air carriers. However, brokers may display their company name on the aircraft, provided the operating air carrier’s name is also prominently displayed. The regulations give brokers more opportunities to market and offer their services, while ensuring necessary consumer protections.

RIAG members Adam Hohulin from Sentient Jet, Dayton Lehman Jr from Capitol Business Solutions and Jason Maddux from Garofalo Goerlich & Hainbach PC, compiled the Q&A to help brokers and operators understand the impact of the final rule, which regulates the air charter broker industry for the first time.

The Q&A contains more than two dozen answers to common questions from air carriers, air charter brokers and broker companies that have card and membership products. Review the Q&A.