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New GA friendly cost sharing rules (and what can and cannot be cost-shared)

If we are talking about amortization that benefits the owner / operator, rental hourly fees that pay for the assets (including asset amortization) can be shared fully, to the (indirect) benefit of club members (eg renters). Why would that reasoning not apply in other cases?

It does not apply when everything is combined in a single entity. I.e. pilot/owner/operator. If it pays for your assets than you profit from it. If someone else (i.e. a club, or an aircraft rental company) benefits from it than the lines are nicely drawn. And the temptation to abuse the system is consequently much less likely to occur. By abuse I mean advertising to the general public to get your shiny DA-42 or whatever paid in terms of acquisition cost and maintenance cost, by attracting as much customers as you can for your ‘private’ flights. (I’m deliberately using a hyperbole here). No matter what the actual law says, I think it is dodgy practice.

“If someone else (i.e. a club, or an aircraft rental company) benefits from it than the lines are nicely drawn”

No they aren’t. As a member of a club I benefit directly from cost sharing, both in member and pilot capacity. I can “advertise” the club plane all I want thereby getting their (and implicitly my) plane paid for in terms of aquisition and maintenance costs. The end result is exactly the same.

Heck if I wanted I could register myself as a NFP association, membership of one, rent the plane to myself and pass the fees on. How are the lines “nicely drawn”?

Last Edited by Shorrick_Mk2 at 17 Apr 11:16

So for clarity, if there are x number of people on a private flight, are they DEEMED to be cost sharing? Or is the operator perfectly entitled to take as many passengers (not more than 19) along for the ride and bear the full cost him/herself? And would the relevant authorities believe that if there are more than 6 and hence more than allowed by the new cost sharing rules?

These rules only cover the cases where the pilot/owner receives money (or benefit in kind). You can fly around people without pay as much as you like, depending on your license of course. If John Travolta feels like flying the Scientology Youth around the world for free in his B707, he can do so, even when EASA registered.

That’s clear but what if the Operator is not the pilot. For example, as an Owner/Operator, can I invite someone to act as pilot (given appropriate insurance/ratings/experience of course) while I sit in the back and take it easy? I understand the pilot cannot be paid unless he/she has a CPL, but can he/she act as pilot at my cost without making a contribution to direct costs ?

Isn’t that what was dubbed “Münchener Modell” in Germany? A way to circumvent the requirement for an AOC by separating the aircraft from the pilot. Initially the operators won some court cases but in the end it was stopped.

A specialized lawyer would have to revisit this in lieu of the new law.

That’s a new one on me, however to be safe I’ll sit P1 and allow the other guys to enjoy their tipple in Le Touquet or similar. Thanks for the advice.

Following the posts from Schilke and achimha, it occurs to me that there’s a presumption that the operator (or an individual of an operating flying group) is also the pilot. However, I can’t see anything that states this has to be the case, so would the following be within the regulations :
- a non-pilot becomes a member of an operating flying group holding the requisite 5% minimum share
- he invites 5 acquaintances to share direct costs on a flight
- he (as operator) authorises one of the 5 others (suitably qualified of course) to act as pilot-in-command in the flight

It seems to me that even though the PIC is not a member/shareholder of the operating flying group, as long as he makes ‘some contribution’ towards the direct costs, this should be ok ?

Regret no current medical
Was Sandtoft EGCF, North England, United Kingdom

See my post at No 98. I know this sort of thing can get a bit convoluted (complicated), but any further views on this subject.

Regret no current medical
Was Sandtoft EGCF, North England, United Kingdom

This thread picks up the cost sharing discussion from here

And the stricter rules regarding cost sharing/passenger flights.

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