FAA Mulls Change to Reimbursement Policy

 - August 3, 2010, 7:00 AM

The FAA late last week released a proposed legal interpretation that would revise “broad prohibition on pro rata reimbursement for the cost of owning, operating and maintaining a company aircraft when used for routine personal travel by senior company officials and employees under certain conditions.” This issue has been looming since 1993 when the FAA issued the “Schwab Interpretation,” which prohibits reimbursement for personal travel under FAR 91.501(b)(5). In the new proposed interpretation, a company could receive reimbursement if a senior executive is required to alter personal travel plans or is recalled from a personal trip because of a company emergency or, in rare cases, even when there is not an emergency.

NBAA told AIN that it “welcomes this proposed interpretation and believes it is good public policy and in the spirit of the regulations to allow key executives to reimburse their companies for personal flights under certain, limited circumstances.” The FAA is accepting comments on the interpretation through August 9.