| Private jet owners are the individuals who are mainly | | | | hour for hour for similar aircrafts, that is one cannot |
| involved in business aviation and are most likely to | | | | trade two hours on a Citation for one hour on a |
| enter into aircraft sharing arrangements. From | | | | Gulfstream. But an hourly charge can be levied for |
| occasional users to industry veterans, there are | | | | the differential operating costs. Interchange |
| different types of sharing structures which are based | | | | sometimes of include leasing where FAA permits |
| broadly on certain issues like legal, regulatory, | | | | "wet" interchanges, whereby each party provides its |
| operational, economic, tax, liability, and disclosure | | | | aircraft and crew to the other. "Dry" interchanges |
| perspectives. Some of these sharing structures are | | | | have are also permitted where each lessee uses its |
| Time Sharing, Interchange, Joint Ownership, Dry | | | | own crew. Normally "dry" leasing has always been |
| Leasing and Fractional. | | | | more common in the private carriage camp than |
| Time Sharing: This is specifically allowed under | | | | "wet" leasing. |
| §91.501© (1) of FAA. Time Sharing is an | | | | Co Ownership: This is an old practice since decades |
| arrangement whereby a person leases his airplane | | | | where companies mutually agree to share ownership |
| along with flight crew to another person and no | | | | of an aircraft. There is no prohibition on doing so as |
| other charges are collected, other than for any direct | | | | per the law. Each co owner has the right to operate |
| expenses incurred during with the flight, like for | | | | the aircraft independently or contract out individually |
| example twice the cost of fuel must be paid. This | | | | or collectively for management services. These |
| charging restriction is its main limitation. This leasing of | | | | arrangements are viewed to be private from an FAA |
| the aircraft along with the crew is also sometimes | | | | perspective and not subject to the Truth in Leasing |
| known as "Wet Lease". It is most useful for short | | | | provisions. The co owners would be unable to charge |
| term arrangements where full cost recovery is not | | | | each other for operating the aircraft. |
| essential. | | | | Each method has its own sets of advantages and |
| Interchange: Specified under $91.501© (2) of | | | | limitations and hence has to be chosen appropriately |
| FAA. Interchange is an arrangement mainly useful for | | | | keeping in mind your annual flight hour requirements, |
| two or more companies, where each of them owns | | | | the type of aircraft you wish to fly and both the |
| an aircraft. They exchange aircrafts to swap time | | | | location of your starting and destination places. |
| which is mutually convenient. The exchange must be | | | | |