Understanding Illegal Air Charter: What You Need to Know to Stay Compliant and Safe 

7.18.25

In private aviation, safety, transparency, and regulatory compliance is crucial. While the industry offers incredible convenience and flexibility, it’s also subject to strict oversight to protect passengers and uphold operational standards. Unfortunately, illegal charter, whether intentional or not, is a persistent issue. For Priester Aviation, we believe education is the first step in preventing it. 

What is Illegal Charter? 

Illegal charter refers to any operation of an aircraft for compensation or hire that falls outside the bounds of FAA regulations, even if the flight is conducted under a certified operator. This can include situations where individual seats are sold on a Part 135 flight without proper authorization. While the aircraft and the crew may be qualified, if the structure of the transaction doesn’t meet FAA requirements, it may still be considered illegal. These non-compliant operations compromise safety oversight, liability protections, and the legal integrity of the flight and aircraft owners can be held liable.  

Illegal charter encompasses a wide range of activity, including: 

By-the-Seat Charters 

Selling individual seats on a private aircraft may seem like a cost-effective solution, but unless the operator is certified for Part 380 Public Charter or Part 135 Commuter operations, it’s unlawful. These charters often bypass the safety checks and insurance standards required for legal operations.

When an aircraft owner or charter client sells an unused seat on a booked charter, it becomes a commercial transaction. This shift triggers regulatory oversight designed to protect the client, and also subjects the sale to federal excise tax requirements. 

 
Dry Leasing Disguised as Charter 

Some entities attempt to use dry leases as a loophole to avoid FAA oversight. If an operator is providing pilots, coordinating schedules, and handling the operation end-to-end but calling it a ‘lease’, this may be a form of sham leasing, which is illegal. 

Fractional Ownership Abuse 

In legitimate fractional ownership programs, multiple parties legally own shares of the aircraft. But when these arrangements are used to get around charter requirements, by flying non-owners or receiving compensation, it crosses into illegal territory.  

Potential Consequences

It is possible that Illegal Charter is usually the result of an innocent lack of knowledge on behalf of the participants, but that doesn’t change the potential consequences. They could range from civil penalties, revocation of pilot certificates, and even fines from governmental agencies. Additionally, violation of these regulations, innocent or not, will almost certainly invalidate your insurance policies. In the event of an emergency, the resulting consequences and liability exposure could be significant.  

How To Protect Yourself 

The best way to avoid participating in illegal charter is to work with a certified, reputable operator. 

Always ask yourself: 

• Am I flying under a Part 135 certificate? 

• Who holds the operational control of this aircraft? 

• Are the pilots Part 135 certified? 

At Priester Aviation, we proudly meet and exceed the rigorous requirements of legal, safe charter operations. Our commitment to FAA compliance, third-party safety audits, and transparent operations ensure that your travel is not only seamless, but secure. 

Illegal charter comes in many forms, but the risks are always the same, safety, liability, and reputation. If you’re unsure whether a flight is being operated legally, ask questions or consult an expert. Your safety and peace of mind depend on it. 

We are in an era of rapid evolution, and one societal change is the movement towards a “shared economy.” This is highlighted by companies such as UBER and WeWork. The FAA and the NTSB are concerned that there are significant safety risks allowing the public to access aircraft that aren’t subject to rigorous safety standards required in commercial operations. And that is what’s driving massive focus on “Illegal Charters.” 

To learn more, https://www.faa.gov/charter