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