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Business Air News Bulletin
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LeClairRyan releases advice on charter regulations
Everything you need to know about an FAA ruling designed to facilitate innovation and growth of the air charter industry while strengthening the legal protections provided to consumers of charter air transportation.
Darcy C Osta gives advice for brokers.

A webinar from US law firm LeClairRyan has been released to provide information about FAA charter aviation rule changes set to take effect from February. Conducted by members of its aviation practice team, the 90-minute webinar is , LeClairRyan says, as an indepth examination of the FAA's new rules governing interactions between brokers, charterers and carriers. It is available, free of charge, for audio streaming or download.

“These changes are about ramping up transparency, clamping down on deceptive or unfair trade practices and promoting US charter aviation by improving the consumer experience,” says partner Mark McKinnon, a 27-year veteran of aviation law. “But companies need to act now to prepare as changes go into effect on 14 February.”

Adding urgency to this deadline, the FAA and DOT aim to step up surveillance, oversight and enforcement of charter operators and brokers this year.

The new regulations were sparked in part by an NTSB investigation of a deadly 2004 plane crash involving a company that did business under a confusing proliferation of revolving trade names, and McKinnon adds: “The NTSB's investigators, and even some executives at the charter company itself, had struggled to figure out the actual relationship between this swirl of entities. In a 2006 safety recommendation to the FAA based on the accident, the NTSB noted that a lack of transparency over aircraft charters might undermine a passenger's ability to make safety-related decisions.”

During the programme McKinnon and co-presenter Darcy Osta, a partner and transportation and aviation attorney, cover new FAA designations such as 'air charter brokers' and 'indirect air carrier' and describe in detail a raft of disclosure responsibilities, some mandatory and others that must be provided upon request, for air charter brokers as well as air taxi or commuter air carriers that sell charter air transportation. “To cite just one example,” notes Osta, “before entering into a contract, the air charter broker must disclose the corporate name of the direct air carrier in operational control of the aircraft, as well as any other names in which that direct carrier holds itself out to the public.”

The attorneys also discuss the FAA's new list of prohibited 'deceptive and unfair trade practices'. Now that regulators have clarified what constitutes prohibited acts, it will no longer be possible to claim ignorance in the wake of a violation.

“Per the regulations, air charter brokers need to familiarise themselves with this list and scour their ads, solicitation materials, brochures and web pages to clarify that they are not [portraying themselves as] a direct air carrier in operational control of an aircraft,” McKinnon continues. “Among other transparency requirements, they need to make clear that the services will be provided by a licensed direct air carrier. If the air charter broker displays its name and logo on an aircraft, the name of the direct air carrier must be prominently displayed as well.”

Lastly, the attorneys offer an in-depth to-do list designed to help stakeholders in charter aviation prepare for these changes. “If you're a charterer, for example, it's important to know all of the information to which you're entitled now,” adds Osta. “These rules empower you to find out more about charter air carriers. You can look into their safety records and make more informed decisions about who is being hired.” Under certain circumstances, charterers can also take advantage of the new regulations to change contracts, cancel flights and receive timely refunds. “Know your rights,” she advises.

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