The FAA is thinking about revising its definitions of on-demand operation, supplemental operation, and scheduled operation as it jumps into the roiling debate surrounding the use of Department of Transportation (DOT) Part 380 public charter economic authority. Releasing a draft notice of intent (NOI) yesterday, the FAA said it is planning a rulemaking to address “the exception from FAA’s domestic, flag, and supplemental operations regulations for public charter operators.” Such a rulemaking, the agency added, would move some operators under Part 135 to Part 121.

Part 380 has been used by operators such as JSX, large charters, essential air service providers, and companies employing other on-demand per-seat models for the past 45 years. However, an application filed a year ago by SkyWest Charter for DOT Part 380 authority has touched off a controversy pitting pilots, some airlines, and certain communities against other operators, the business and general aviation sector, and other communities. While SkyWest filed the application, Part 380 operator JSX has become a prime target for those opposing the use of 380.

The DOT has yet to rule on the application, but the FAA has stepped into the issue with the NOI.

Operations under Part 380 may be conducted under Part 135 safety regulations as long as they involve 30 or fewer passenger seats, the FAA said. However, it is concerned that “the size, scope, frequency, and complexity of charter operations conducted as ‘on-demand’ operations under the Part 135 operating rules has grown significantly over the past 10 years,” and added, “While the FAA has adjusted its oversight of these increased operations, the FAA is considering whether a regulatory change may be appropriate to ensure the management of the level of safety necessary for those operations.”

The FAA’s reasoning falls in line with arguments made by the Air Line Pilots Association (ALPA) and other air carriers that have called Part 380 a “loophole” and have sought to halt its use by certain carriers. ALPA praised the NOI yesterday, calling it a “significant step in the right direction” and saying the agency has acted to uphold the highest standards of aviation safety and security.

ALPA president Jason Ambrosi added: “Some airlines use the public charter loophole to cut costs by skirting lifesaving safety rules, but if they run similar operations as commercial scheduled airlines, then they are not operating as charter, and that’s an issue.”

However, business and general aviation groups and others have pushed back, expressing a concern that upending Part 380 could end service to small, rural communities where Part 121 operators have pulled out or don’t see a business case for serving.

They have argued that the SkyWest Charter application “has been misused by economic competitors that, with no evidence of safety and security concerns, seek to prevent Part 135 operators from conducting public charter [Part 380] flights. Their unsubstantiated claims do a disservice to this well-established regulatory framework and the safe, secure transportation services its operators provide to the traveling public.”