Appendix 3 APPENDIX 3. CERTIFICATION OF THE EXECUTION OF AGREEMENTS I, ____________________, an officer of ______________________ (the program manager), which manages the ___________ fractional ownership program (the Program), certify that the program satisfies the eligibility requirements of Title 14 of the Code of Federal Regulations (14 CFR) part 91 subpart K (part 91K), and that the agreements required under part 91K have been executed. These agreements include (1) a Dry Lease Exchange Agreement; (2) a Management Contract; and (3) statements of Acknowledgement of Fractional Owner’s Operational Control Responsibilities. The owners and I understand that the Federal Aviation Administration (FAA) has the right to inspect all contracts.
1. DRY LEASE EXCHANGE AGREEMENT. The Dry Lease Exchange Agreement or other program agreements between the program manager and owners related to aircraft exchange address the following:
a. Mandate that two or more airworthy aircraft be available in the long term.
b. Allow the fractional owners of an aircraft to use (through the program manager) aircraft owned by other fractional owners within the same program.
c. Clarify that the program manager will schedule the aircraft from within the dry lease exchange pool and provide other aviation expertise and services to the owners.
d. Specify this is a multiyear program agreement.
2. MANAGEMENT CONTRACT. The management contract or other agreements between the program manager and the owners related to program management services address the following:
a. Specify this is a multiyear program contract.
b. Require the program manager to ensure that the program conforms to all applicable requirements of part 91K.
c. Provide the owner or owner’s designee the right to inspect and to audit the records of the program manager that related to the operational safety of the program and those records required to show compliance with the management specifications and all applicable regulations.
d. Designate the program manager as the owner’s agent to receive service of notices from the FAA.
e. Acknowledge the FAA’s right to contact the owner directly.
f. Prohibit an owner from carrying persons or property for compensation or hire on a program flight except if such operations are carried out in compliance with 14 CFR parts 135 or 121.
g. Limit the flight hours used during the term of the multiyear agreement to the total hours associated with the owner’s share of ownership.
Appendix 3
h. Prohibit the sale or lease of aircraft interest that is lesser than the “minimum fractional ownership interest” unless the flights associated with that interest are operated under part 121 or 135 and are conducted by an air carrier or commercial operator certificated under 14 CFR part 119.
i. State that the program manager will provide the owner the following operating services and functions:
(1) Establishment and implementation of safety program guidelines.
(2) Employment, furnishing, or contracting of pilots and other crewmembers.
(3) Training and qualification of pilots and other crewmembers and personnel.
(4) Scheduling and coordination of the program aircraft and crews.
(5) Maintenance of program aircraft under the terms of this agreement.
(6) Satisfaction of record keeping requirements.
(7) Development and use of a program operations manual and procedures.
(8) Application for and maintenance of management specifications and other authorizations and approvals from the FAA.
(9) Training in the recognition of hazardous materials.
3. ACKNOWLEDGMENT OF OWNER’S OPERATIONAL CONTROL RESPONSIBILITIES. Each owner in the fractional ownership program has signed an Acknowledgment of Owner’s Operational Control Responsibilities, and under the acknowledgment:
a. The owner understands that he or she is in operational control of a program aircraft and must operate it in accordance with part 91K when: (1) the owner has the rights and is subject to the limitations applicable to the owner as set forth under part 91, §§ 91.1003 through 91.1013;
(2) the owner has directed that a program aircraft carry passengers or property he or she designates; and (3) the program aircraft is carrying those passengers or property.
b. The owner understands that he or she is in operational control of a program aircraft, even where he or she leases the program aircraft from another owner through the Dry Lease Aircraft Exchange (or Interchange) arrangement.
c. The owner understands and agrees to the responsibilities and potential liabilities described below. When the owner is in operational control, the following apply:
(1) The owner is responsible for safe operations, for complying with all applicable laws and regulations, and the management specifications (MSpecs) issued to program manager.
Appendix 3
(2) Even though the owner may delegate to the program manager performance of some or all of the tasks associated with carrying out owner’s responsibilities, the owner continues to be jointly and individually responsible, along with the program manager, for performance of these tasks and for compliance with applicable requirements.
(3) The owner may have liability risks in connection with the operation of the program aircraft, including possible liability risks for at least enforcement actions for any noncompliance, and liability if a flight-related occurrence causes personal injury or property damage.
______________________________ _____________________________ Name Title ______________________________ _____________________________ S i g n a t u r e D a t e Page 3 (and 4)
Appendix 4 APPENDIX 4. FIVE PHASES OF APPLICATION AND REQUIREMENTS OF THE GATE SYSTEM FOR PART 91K Phase 1 Preapplication •Flight Standards District Office (FSDO) Manager-Assign the application project manager *FSDO -Conduct Applicant Orientation and Preliminary Discussion
•FSDO-Provide applicant with application package
•Applicant Submit completed FAA statement of intent (SOI)
•Applicant-Submit proposed schedule of events
•Applicant-Identify management representatives Gate I •Applicant-Identify locations for training, maintenance, and principal base of operations
•Applicant-Submit documentation to substantiate a fractional ownership or business plan
•FSDO-Review and accept SOI
•FSDO Advise regional Flight Standards division Phase 2 Formal •FSDO-Complete Program Tracking and Reporting Subsystem for initial Application contact Applicant-Submit formal letter of application to FSDO
•Applicant-Submit schedule of events to FSDO
•Applicant-Submit all required manuals, programs, and materials to FSDO Gate II •FSDO-Accept or reject formal application
•FSDO-Obtain company identifier through OPSS Phase 3 Document Compliance FSDO -Monitor training/checking Phase 4 Demonstration •FSDO Conduct aircraft conformity and Inspection inspections FSDO-Conduct facility inspections
•FSDO-Review, approve, or accept all manuals, programs, and documents, as required Applicant-Correct manual/program discrepancies, as required Gate I|I •Applicant-Train sufficient personnel *Applicant/FSDO-Complete conformity checks
•Applicant-Submit proving/validation test schedule, as required
•FSDO Evaluate all facilities FSDO conducts the following:
• Inflight and/or tabletop demonstrations
•Operational control inspections Proving/Validation • Maintenance procedures inspections Testing •Passenger-handling procedures
• Inspects adequacy of systems, manuals, and procedures
• Recordkeeping inspections Phase 5 Documentation Page 1 (and 2)
Appendix 5 APPENDIX 5. STATEMENT OF INTENT
STATEMENT OF INTENT FOR
FRACTIONAL OWNERSHIP PROGRAMS Section 1.
1. Name and mailing address 2. Address of principal base where operations will be conducted
3. Proposed startup date
4. Requested three-letter company identifier in order of preference
1. __ __ __K 2. __ __ __ K 3. __ __ __K
5. Program Manager Representative Name (Last, first, middle) Company Name Telephone (including area code)
6. Type of operation Other Certificate(s) Held:
Part 125 Certificate No: ____ ____ ____ ____ ____ ____ ____ ____ Part 121 Certificate No: ____ ____ ____ ____ ____ ____ ____ ____ Part 135 Certificate No: ____ ____ ____ ____ ____ ____ ____ ____ Other Affiliate Part 91K ID No: ____ ____ ____ ____ ____ ____ ____ ____ Other Affiliate Part 91K ID No: ____ ____ ____ ____ ____ ____ ____ ____ Other Affiliate Part 91K ID No: ____ ____ ____ ____ ____ ____ ____ ____
7. Aircraft data 8. Geographic area of intended operations Number and types of aircraft (by make, model, and series) List may be attached
US US and International
Appendix 5 APPENDIX 5. STATEMENT OF INTENT (Continued)
9. Additional information that provides a better understanding of the proposed fractional ownership
10. The statements and information contained on this form denote an intent to apply for management specifications.
Signature
Date
Name and Title
Section 2. To Be Completed By FAA District Office Received By (district office):
Date Scheduled for IOPSS
Date:
For: Action Information only
Has this program manager ever been assigned any 4-digit designator yes no unknown Designator Code:
Remarks:
Appendix 6 APPENDIX 6. SCHEDULE OF EVENTS FOR PART 91K Company Name: _______________________________ Phase I—Preapplication:
1. Initial Contact Meeting Date:_____________
2. Second Contact Meeting Date:______________ Date Submitted/ Received Date Returned Date Approved/ Accepted
a. Statement of Intent (SOI)
b. Proposed Schedule of Events (SOE)
c. Management Specifications (MSpecs) Worksheet.
Phase II—Formal Application:
1. Formal Application Meeting Date:________________
2. Formal Application
3. Formal Application Attachments:
• Management Personnel Documentation
• Compliance Statement
• Program Operating Manual (POM).
Ref. 91.1025
• Requests for Deviations
• Approved Inspection Program/General Maintenance Manual (GMM), as required.
• Weight & Balance Procedures/Program
• Internal Safety Reporting Procedures and incident/accident response procedures.
Ref. 91.1021
• Training Programs
• Aircraft Flight Manual (AFM) or Aircraft Operations Manual
• Minimum Equipment List (MEL)
• Cockpit Checklists (Normal, Abnormal, Emergency). Ref. 91.1033
• Passenger Briefing Cards. Ref. 91.1035
• Flight & Rest Scheduling Program
• HAZMAT Recognition Program.
Ref. 91.1085
Appendix 7
• Certification and Execution of Agreements and Acknowledgement of Owners’ operational control responsibilities.
• Pilot Safety Background Checks & Procedures (Pilot Records Improvement Act (PRIA)). Ref. 91.1051
• Drug & Alcohol Misuse Education Program. Ref. 91.1047
• List of Owners & Associated Aircraft Ref. 91.1027
• Configuration Deviation List (CDL)
• Environmental Review Ref. 8900.1 Vol.
11, Chapter 6, Section 3
• Destination Airport Analysis Program (DAAP). Ref. 91.1037
• Proving and/or Validation Test Plan.
Ref. 91.1041
• Continuous Analysis & Surveillance System (CAMP), if required. Ref.
91.1411
• Security Program
• Flight Locating Procedures
• Other Requested Authorizations
Phase III—Document Compliance:
• Management Personnel Documentation
• Compliance Statement
• Program Operating Manual (POM).
Ref. 91.1025
• Requests for Deviations
• Approved Inspection Program/General Maintenance Manual (GMM), as required.
• Weight & Balance Procedures/Program
• Internal Safety Reporting Procedures and Page 2
Appendix 7 incident/accident response procedures.
Ref. 91.1021
• Training Programs
• Aircraft Flight Manual (AFM) or Aircraft Operations Manual
• Minimum Equipment List (MEL)
• Cockpit Checklists (Normal, Abnormal, Emergency). Ref. 91.1033
• Passenger Briefing Cards. Ref. 91.1035
• Flight & Rest Scheduling Program
• HAZMAT Recognition Program.
Ref. 91.1085
• Certification and Execution of Agreements and Acknowledgement of Owners’ operational control responsibilities.
• Pilot Safety Background Checks & Procedures (Pilot Records Improvement Act (PRIA)). Ref. 91.1051
• Drug & Alcohol Misuse Education Program. Ref. 91.1047
• Load Manifest. Ref. 91.1027
• List of Owners & Associated Aircraft Ref. 91.1027
• Configuration Deviation List (CDL)
• Environmental Review Ref. 8900.1, Vol.
11, Chapter 6, Section 3
• Destination Airport Analysis Program (DAAP). Ref. 91.1037
• Flight Attendant Manual
• Proving and/or Validation Test Plan.
Ref. 91.1041
• Continuous Analysis & Surveillance System (CAMP), if required. Ref.
91.1411
• Security Program
• Flight Locating Procedures
• Other Requested Authorizations Page 3