Understanding FAA Regulations for Flight Cost Sharing: A Comprehensive Guide

Cost sharing has become an increasingly popular way for pilots to make flying more affordable. However, navigating the Federal Aviation Administration (FAA) regulations surrounding cost sharing can be complex. This comprehensive guide breaks down the legal framework, common misconceptions, and best practices for compliant flight cost sharing.

The Fundamentals of FAA Cost Sharing Regulations

The FAA has established specific guidelines that govern how pilots can share expenses with passengers. These regulations are designed to maintain a clear distinction between private operations and commercial air transportation.

The primary regulation governing cost sharing is found in 14 CFR § 61.113(c), which states:

“A private pilot may not pay less than the pro rata share of the operating expenses of a flight with passengers, provided the expenses involve only fuel, oil, airport expenditures, or rental fees.”

This seemingly straightforward statement contains several critical components that require careful interpretation.

“Understanding these regulations isn’t just about legal compliance—it’s about ensuring the safety and integrity of general aviation while making flying more accessible.” – Elizabeth Chen, Aviation Attorney

Breaking Down the Key Components

1. Pro Rata Share Requirement

What it means: Each person on the flight, including the pilot, must pay an equal portion of the allowable expenses.

Example calculation:

• Four people on a flight (pilot + three passengers)
• Total allowable expenses: $400
• Pro rata share: $100 per person

Common misconceptions:

• The pilot cannot pay a smaller share than passengers
• The division must be equal among all occupants
• Unequal divisions based on weight, income, or other factors are not permitted

2. Allowable Shared Expenses

The FAA specifically limits which expenses can be shared:

Expenses that CAN be shared:

• Fuel and oil for the specific flight
• Aircraft rental fees for the specific flight
• Airport fees (landing, parking, tie-down)
• Pre-flight inspection costs directly related to the flight

Expenses that CANNOT be shared:

• Aircraft ownership costs (purchase payments, insurance)
• Annual inspection and maintenance costs
• Pilot’s time or expertise
• Hangar rental (unless directly tied to the specific flight)
• Aircraft depreciation
• Pilot’s medical certificate or license renewal costs

3. Common Purpose Doctrine

What it means: All participants must share a common purpose for the flight beyond just transportation.

Acceptable common purposes:

• Attending the same event or meeting
• Visiting the same destination for recreation
• Participating in a shared activity at the destination
• Educational or sightseeing interests shared by all participants

Unacceptable arrangements:

• Pilot flying solely to transport passengers to their destination
• Passengers having no interest in the destination itself
• Pre-arranged transportation services disguised as cost sharing

4. No Compensation Beyond Expense Sharing

What it means: The pilot cannot receive any form of payment or benefit beyond the shared operating expenses.

Examples of prohibited compensation:

• Direct payment for pilot services
• Gifts or barter arrangements in exchange for flying
• Business benefits or goodwill
• Building flight time as sole compensation
• Receiving any payment that exceeds the pilot’s pro rata share

Private Pilot vs. Commercial Operations: The Critical Distinction

Understanding the line between private cost sharing and commercial operations is essential:

Private Cost Sharing (Allowed under Part 91)

• Equal division of specific flight expenses
• Common purpose shared by all occupants
• No compensation beyond expense sharing
• No “holding out” or advertising to the general public
• Primary purpose is not transportation for hire

Commercial Operations (Requires Part 119 Certificate)

• Compensation for transportation services
• Pilot receives payment beyond pro rata share
• Advertising transportation services to the public
• Operating with the primary purpose of transporting people or goods
• Regularly scheduled operations

The “Holding Out” Prohibition

One of the most significant restrictions involves “holding out” or offering services to the general public:

What constitutes “holding out”:

• Advertising flight services to the general public
• Representing oneself as willing to transport anyone who requests it
• Creating the appearance of operating as an air carrier
• Regularly offering flights on public platforms without specific common purpose

What is generally permitted:

• Sharing flight plans with friends, family, or established connections
• Using private platforms to find compatible co-pilots or passengers with shared interests
• Communicating with specific individuals about cost sharing opportunities
• Participating in flying clubs or private aviation groups

Digital Platforms and Cost Sharing: Navigating Modern Challenges

The rise of digital platforms designed to connect pilots with potential cost-sharing passengers has created new regulatory considerations:

The Flytenow Case and Its Implications

In 2015, the startup Flytenow, which connected private pilots with potential passengers for cost-shared flights, was effectively shut down when the FAA ruled that pilots using the platform were “holding out” to the public and thus required commercial certification.

The D.C. Circuit Court upheld the FAA’s interpretation, establishing an important precedent for digital cost-sharing platforms.

Current Digital Platform Guidelines

Based on FAA interpretations and court rulings, digital platforms facilitating cost sharing should:

1. Focus on connecting pilots with common interests rather than providing transportation services
2. Emphasize the common purpose requirement in all communications
3. Avoid language suggesting transportation services or “flights on demand”
4. Require detailed profiles and compatibility matching rather than simple destination matching
5. Limit access to closed communities rather than the general public

Practical Implementation: Ensuring Compliance

Documentation Best Practices

Maintaining proper documentation helps demonstrate compliance with FAA regulations:

1. Written cost-sharing agreements outlining:

• The common purpose of the flight
• How expenses will be calculated and divided
• Confirmation that the pilot will pay at least a pro rata share
• Acknowledgment that the pilot is not providing transportation services

1. Expense records showing:

• Itemized flight expenses
• Equal division among all participants
• Proof of payment from each participant
• Calculation of pro rata shares

1. Flight purpose documentation such as:

• Event information for the shared destination
• Evidence of all participants’ interest in the destination
• Communications showing mutual planning
• Photos or records from the shared activity

Sample Cost Sharing Agreement Language

A basic cost sharing agreement might include language such as:

We, the undersigned, agree to share the operating expenses of this flight to [destination] on [date] for the common purpose of [specific purpose]. Each participant, including the pilot, will pay an equal pro rata share of the allowable operating expenses, which include only fuel, oil, airport fees, and aircraft rental. The total estimated expenses are [amount], with each person's share being [amount]. We acknowledge that the pilot is not providing transportation services and is participating in this flight for the same purpose as all other participants.

Special Considerations for Different Pilot Certificates

Private Pilots (Part 61)

• May share expenses under § 61.113(c) as outlined above
• Must maintain currency and appropriate ratings
• Cannot act as pilot in command (PIC) for compensation or hire

Commercial Pilots (Part 61)

• Still subject to the same cost sharing restrictions when operating under Part 91
• Commercial certificate alone does not authorize transportation for hire
• Must operate under Part 119 certificate for true commercial operations
• Can receive compensation for certain operations specified in § 61.133

Flight Instructors

• May receive compensation for flight instruction
• Instruction must be the genuine purpose of the flight
• Cannot use “instruction” as a pretext for transportation services
• Student must have a legitimate instructional purpose

Common Scenarios and Their Regulatory Status

Scenario 1: Weekend Getaway with Friends

Situation: A pilot and three friends plan a weekend trip to a beach town. All four share an interest in visiting the destination, and each pays 25% of the fuel, oil, and airport fees.

Regulatory Status: ✅ Compliant cost sharing

• Equal pro rata division
• Common purpose (vacation at the beach)
• Only allowable expenses shared
• No compensation beyond expense sharing

Scenario 2: Business Trip with Colleagues

Situation: A pilot flies several colleagues to a business meeting. All attendees, including the pilot, have business at the destination. Each person pays an equal share of the operating expenses.

Regulatory Status: ✅ Compliant cost sharing

• Common business purpose
• Equal division of allowable expenses
• Pilot has legitimate business at the destination
• No additional compensation

Scenario 3: Flying Club Arrangement

Situation: Members of a flying club share the fixed costs of aircraft ownership and pay hourly rates for usage that cover operating expenses.

Regulatory Status: ✅ Generally compliant

• Structure must ensure no profit is generated
• All members must have equal access and rights
• Hourly rates must only cover actual operating costs
• Club cannot offer services to the general public

Scenario 4: Online Platform Matching

Situation: A pilot uses an online platform to find passengers interested in sharing costs for a flight to a popular air show. The platform matches based on shared interest in aviation events.

Regulatory Status: ⚠️ Requires careful implementation

• Must emphasize common purpose (attending the air show)
• Cannot appear to offer transportation services
• Platform should be limited to closed community
• All FAA cost sharing requirements must be met

Scenario 5: Regular Commuting Arrangement

Situation: A pilot flies to work three times weekly and offers to take colleagues along if they share expenses.

Regulatory Status: ❌ Potentially non-compliant

• May lack genuine common purpose beyond transportation
• Regular schedule suggests transportation service
• Primary purpose appears to be commuting
• Could be interpreted as holding out

FAA Enforcement and Consequences of Non-Compliance

Understanding the potential consequences of violating cost sharing regulations is important:

Possible Enforcement Actions

1. Certificate Action

• Suspension or revocation of pilot certificates
• Limitations on flying privileges
• Reexamination requirements

1. Civil Penalties

• Fines up to $50,000 per violation
• Cease and desist orders
• Injunctions against further operations

1. Criminal Penalties

• In cases of willful violations or fraud
• Potential imprisonment for severe cases
• Criminal fines in addition to civil penalties

Enforcement Process

1. Investigation – Typically initiated by complaint or incident
2. Letter of Investigation – Formal notification of FAA inquiry
3. Informal Conference – Opportunity to present information
4. Enforcement Decision – Determination of action to be taken
5. Appeal Rights – Through NTSB or federal courts

Recent Developments and Future Trends

The regulatory landscape for cost sharing continues to evolve:

Legislative Initiatives

The Aviation Empowerment Act and similar proposals have sought to:

• Clarify the definition of “common purpose”
• Expand allowable cost sharing arrangements
• Create specific exemptions for digital platforms
• Establish clear guidelines for expense sharing

Industry Adaptation

Aviation stakeholders are developing new approaches:

• Membership-based platforms with closed communities
• Enhanced verification of pilot credentials and experience
• Clear documentation systems for compliance
• Educational resources on regulatory requirements

International Perspectives

Other jurisdictions offer different models:

• European Union regulations on cost sharing
• Canadian approach to expense sharing
• Australian guidelines for private operations
• Potential harmonization of international standards

Best Practices for Compliant Cost Sharing

For Pilots

1. Ensure genuine common purpose for all flights
2. Document all expenses and their equal division
3. Avoid language suggesting transportation services
4. Maintain clear records of all cost sharing arrangements
5. Stay current on regulatory interpretations and changes
6. Consult with aviation attorneys when uncertain
7. Never accept compensation beyond expense sharing

For Passengers

1. Understand the limitations of cost shared flights
2. Verify the pilot’s credentials and experience
3. Participate in flight planning to demonstrate common purpose
4. Be flexible with scheduling as these are not commercial services
5. Pay your share promptly and keep records
6. Respect the regulatory framework that enables cost sharing

For Platform Developers

1. Focus on connecting people with common interests
2. Avoid language suggesting transportation services
3. Implement verification systems for pilot credentials
4. Provide educational resources on regulatory compliance
5. Maintain closed communities rather than public marketplaces
6. Include clear disclaimers about the nature of cost sharing
7. Consult aviation attorneys during platform development

Conclusion: Navigating Cost Sharing Responsibly

Cost sharing represents a valuable opportunity to make aviation more accessible and build community among pilots and aviation enthusiasts. By understanding and carefully following FAA regulations, pilots can legally share expenses while maintaining the safety and integrity of general aviation.

The key to successful cost sharing lies in genuine common purpose, equal division of allowable expenses, proper documentation, and avoiding any appearance of offering transportation services. When implemented correctly, cost sharing benefits everyone involved—making flying more affordable for pilots while providing unique aviation experiences for passengers.

As regulations and interpretations continue to evolve, staying informed and consulting with aviation attorneys when necessary will help ensure your cost sharing arrangements remain compliant with FAA requirements.

Have questions about flight cost sharing regulations? Share them in the comments below!

Looking for compatible cost-sharing partners? Join PilotPair today to connect with pilots who share your interests and destinations.