DOT Releases Proposal To Regulate Air Charter Brokers
The U.S. Department of Transportation issued a notice of proposed rulemaking (NPRM) yesterday that would regulate “air charter brokers.” The agency says it is undertaking this action “to protect consumers, ensuring that consumers of single-entity charter air transportation have adequate information about the operator of chartered aircraft and enumerating certain prohibited unfair and deceptive practices by air taxis and commuter air carriers.”
The NPRM proposes to create a new class of indirect air carriers called air charter brokers, establishing required disclosures and listing “certain prohibited unfair and deceptive practices” for this segment. The proposed rule would also codify an exemption authority granted in 1983 to indirect air carriers to engage in the sale of air ambulance services, as well as clarify and codify that certain air services performed under contract with the federal government are common carriage.
NBAA said it is reviewing this proposed rulemaking in detail and is preparing comments for submission by the November 29 deadline. According to NBAA, this NPRM and its effect on the business aviation industry will be discussed in detail at an education session, “FAA and DOT Regulatory Compliance,” on October 23 at the NBAA Convention in Las Vegas.