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Airline Interchange Agreement

Flights operated under a connecting agreement may be subject to a federal excise tax (FET). For information on this tax, members should have access to the NBAA web resource at IRS Commercial Transport taxes for Part 91 Flights. Correspondence agreements are relatively new and are increasingly used by aircraft operators in Brazil. In response to industry requests, ANAC and the Brazilian Civil Aviation Registry (RAB) have recently clarified several trade rules. Due to their novelty, interchange agreements are not always included in the sector. Interchange agreements have some similarities to line spacing and code-sharing agreements, but have important differences. Due to the growing interest in exchanging registered aircraft outside Brazil, RAB expects a database to be developed for the registration of foreign aircraft exchange agreements exchanged with Brazilian operators. At the end of October 2017, only one foreign replacement aircraft under a connecting contract was registered with the RAB. Currently, others are being registered. An interchange agreement is defined in 14 CFR 91.501(c)(2) of the Federal Aviation Regulations (FARs) as an “agreement in which a person leases his or her aircraft in exchange for the same duration, if necessary, on the other person`s aircraft and is not charged, appraised or charged, unless a fee can be collected, so as not to exceed the difference between the costs of ownership, the operation and maintenance of both aircraft. (q) Survival.

All insurances, warranties, assurances and agreements set forth in Sections 1 (the first sentence only) 4, 5 (a), 5 (e), 8, 9, 11, 12, 14, 15 of this Agreement survive the expiration or termination of this Agreement. The interchange deal is a seemingly tempting opportunity for owners of business jets offered by the Federal Aviation Regulations (FARs). The rule allows you to “swap” your jet with someone else`s, so that, in the words of the FAA, you can “expand or use more completely” your aircraft. Ideally, the exchange would maximize the use of both jets and, in many cases, aim for a more suitable aircraft for a particular mission. In its current form, the bill would require that the exchange of an aircraft be in accordance with the international treaties and conventions to which Brazil is subject and the exchange with the laws of the country where an aircraft exchanged is operated. Although the bill represents a considerable step forward in terms of the clarity of the law applicable to exchange agreements in Brazil, it is still under discussion by Congress and its provisions may change before the adoption of a final text. Initially, the main obstacle to connecting agreements was the reluctance of civil aviation authorities to allow their operators to operate foreign-registered aircraft. Due to the extremely short lifespan of each transport node, it is not practical to change the national registration of an aircraft. In an interchange agreement, the registration of the exchanged aircraft remains unchanged, although the exchanger and exchange come from different countries.

The interchange and exchanges have separate air operator certificates in their respective countries. Only U.S.-registered aircraft, which can be operated under FAR Part 91 Subpart F, are eligible for a connecting agreement. . . .

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Posted: 09/10/2021

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