Navigating the Skies: Understanding FAA Rules for Renting Out Your Single-Engine Piston Aircraft
Owning a single-engine piston aircraft is a dream for many, offering unparalleled freedom and access to the vast expanse of the sky. For some, the idea of renting out their aircraft to others surfaces as a way to offset ownership costs or simply share the joy of flight. However, this seemingly straightforward proposition is governed by a complex web of Federal Aviation Administration (FAA) regulations designed to ensure safety and prevent unauthorized commercial operations.1 Understanding these rules is paramount to avoid serious legal repercussions and maintain the airworthiness of your prized possession.
PART 91 VS. PART 135: THE CRUCIAL DISTINCTION
The FAA fundamentally distinguishes between private operations and commercial operations.2 The vast majority of private aircraft owners operate under Part 91 of the Federal Aviation Regulations (FARs), which covers general operating and flight rules. This part is designed for personal or business use where no compensation or “holding out” to the public for air transportation is involved.1
Conversely, operating an aircraft for “compensation or hire” generally falls under Part 135 (Commuter and On-Demand Operations) or Part 121 (Domestic, Flag, and Supplemental Operations, typically for airlines). These parts impose significantly more stringent requirements for maintenance, pilot qualifications, operational control, and insurance, all designed to protect the flying public.3 If you intend to rent out your single-engine piston aircraft for profit, you are likely venturing into the realm of commercial operations, which almost always necessitates compliance with Part 135.
THE NUANCES OF AIRCRAFT LEASING: DRY LEASE VS. WET LEASE
The FAA meticulously scrutinizes aircraft leasing arrangements to determine operational control and, consequently, which FAR part applies.4 The two primary types of leases are:
DRY LEASE: In a dry lease, the aircraft owner (lessor) provides only the aircraft to another person (lessee) for compensation. The lessee is responsible for providing their own pilot, fuel, maintenance, and assumes full operational control of the aircraft. This is analogous to renting a car; you rent the vehicle, but you are responsible for driving it. Properly structured dry leases typically allow the lessee to operate the aircraft under Part 91, provided they do not then use it for commercial purposes themselves. The FAA highly recommends a written lease agreement, even for aircraft under 12,500 pounds MTOW, as it clearly defines responsibilities.
WET LEASE: A wet lease occurs when the aircraft owner provides both the aircraft and at least one crewmember (typically a pilot) for compensation.5 In this scenario, the lessor retains operational control of the aircraft. Unless specific exemptions apply (such as certain time-sharing agreements under FAR 91.501, which are generally for larger or turbine-powered aircraft, or the NBAA Small Aircraft Exemption for certain business aircraft), a wet lease almost always constitutes a commercial operation and requires the lessor to hold an FAA commercial operating certificate (e.g., a Part 135 certificate).6 The FAA is keen to identify “sham” dry leases where a lessor appears to be dry leasing an aircraft but is, in fact, providing a pilot or exercising operational control, effectively creating an illegal wet lease.7
IMPLICATIONS OF OPERATING FOR COMPENSATION
If your aircraft rental arrangement is deemed a commercial operation, even for a single-engine piston aircraft, the implications are substantial:
- Maintenance Requirements: Part 135 aircraft are subject to much more frequent and rigorous inspections, including 100-hour inspections in addition to the annual inspection.8 This contrasts with Part 91 operations which primarily require an annual inspection. The increased scrutiny and detailed maintenance records are designed to ensure a higher level of safety for passengers paying for air transportation.
- Pilot Qualifications: Pilots operating under Part 135 must meet stricter experience and training requirements, often needing an Airline Transport Pilot (ATP) certificate and specific type ratings, along with recurrent training.9
- Operational Control: The entity holding the Part 135 certificate assumes operational control, meaning they are responsible for initiating, conducting, and terminating flights, and ensuring compliance with all regulations.
- Insurance: Part 135 operations typically require higher liability insurance coverage compared to Part 91 operations. Many standard private aircraft insurance policies include exclusions for commercial use, so ensuring appropriate coverage is crucial.
- “Holding Out”: Even without a formal lease, simply “holding out” to the public that you offer air transportation for hire can trigger commercial operator regulations. This can include advertising your aircraft for rent, or even word-of-mouth arrangements that suggest a willingness to carry passengers for compensation.
The FAA takes unauthorized commercial operations very seriously, and violations can lead to hefty fines, certificate suspensions, and even aircraft impoundment.10 It is always advisable to consult with an aviation attorney and the local FAA Flight Standards District Office (FSDO) before entering into any aircraft rental or leasing arrangement.
ENSURING AIRWORTHINESS AND SAFETY
Regardless of whether you rent your aircraft or not, maintaining its airworthiness is the owner’s fundamental responsibility. This includes complying with all Airworthiness Directives (ADs) and ensuring that all required inspections are completed on time. The pilot in command also bears the responsibility for determining if the aircraft is in a condition for safe flight before each operation.11
At The Aero Center, we understand the critical importance of meticulous maintenance. As the only 24/7 maintenance center in California, Arizona, and Nevada specializing in single-engine and twin-piston aircraft, we are dedicated to reducing your airplane’s downtime. Our commitment to prompt, high-quality service means your aircraft is back in the air safely and swiftly, whether for personal use or any FAA-compliant rental activity. We pride ourselves on the consistency of our expert service, with a long track record of satisfied aircraft owners who can attest to our authority in aviation maintenance.
Footnotes
- National Business Aviation Association (NBAA). General Aviation Dry Leasing Guide. Available at: https://www.faa.gov/sites/faa.gov/files/2021-11/GADryLeasingGuide.pdf
- Federal Aviation Administration (FAA). Advisory Circular 91-37B – Truth in Leasing. Available at: https://www.faa.gov/documentLibrary/media/Advisory_Circular/AC_91-37B.pdf
- NBAA. Aircraft Leasing. Available at: https://nbaa.org/flight-department-administration/aircraft-operating-ownership-options/aircraft-leasing/
- Thrust Flight. The Differences Between Parts 91, 121, and 135. Available at: https://www.thrustflight.com/part-91-121-135/
The Aero Center is located at William J. Fox Airfield KWJF | Lancaster, CA. Contact us at 209.885.6950 for questions or appointments.