On Demand

The Flight Department Company Trap


Created on August 19, 2019




Many regulatory issues arise when owning or operating an aircraft. Aircraft owners or operators who are unfamiliar with these regulatory restrictions commonly attempt to shield tort liability by creating some form of corporate entity that is a subsidiary of the "real" operating company, or they have that company solely owned by the individual who really wants to use the aircraft. They then make the aircraft the sole substantive asset of the company, and use that company to maintain and fly the aircraft for the benefit of the parent company or sole shareholder. By doing so, they have just fallen into the "flight department company trap."

This course, taught by aviation attorney Greg Reigel, will provide details on the various Federal Aviation Administration rules that have a significant impact on how businesses or individuals can utilize private aircraft, as well as how counsel can identify the flight department company trap, understand the consequences of creating a flight department company, and the available alternatives to avoid falling into the trap and legally conduct private aircraft operations.

Learning Objectives:

  1. Review relevant federal and state laws and regulatory activity applicable to aircraft operations
  2. Assess how these laws apply to different types of aircraft operations
  3. Identify a flight department company flight operation
  4. Provide practical guidance to avoid the flight department company trap and properly structure private aircraft operations

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