FAA Issues New Interpretation on Personal Use Reimbursement
01/10/2011 —
Last year, NBAA asked the Federal Aviation Administration (FAA) to reconsider a long-standing legal interpretation regarding reimbursement for personal flights, and in December, the agency issued a modified interpretation that will have the effect of allowing some companies up to full-cost reimbursement for personal trips. NBAA asserted that certain key personnel are so important to a company that they could be called back on a moment's notice – even during personal trips – so that their travel on the company aircraft should be treated by the FAA as "within the scope of and incidental to the business" of the company operating the aircraft. With some caveats, the FAA agrees with this position. NBAA is developing a resource for Members explaining the steps that must be taken before reimbursement is made. View NBAA's request for the interpretation and FAA's response.