Part 91 Dry-Lease Legal Specifications

1. Dry-Lease Structure (14 CFR § 91.501)

FracUse facilitates aircraft usage under Title 14 of the Code of Federal Regulations (14 CFR) Part 91. An aircraft dry-lease transfers operational control of the aircraft to the lessee without providing flight crew members directly within the aircraft lease agreement.

Under 14 CFR § 91.501, fractional ownership programs and dry-lease arrangements are specifically authorized for operations that do not constitute common carriage. FracUse structures all member arrangements to comply fully with these provisions, ensuring that each lease is a bona fide transfer of operational control to the lessee.

The dry-lease structure means that FracUse, as the management platform, does not exercise operational control over any flight. The lessee assumes all responsibilities associated with the safe and lawful operation of the aircraft during the lease period.

2. Operational Control & Crew Independence

Under FAA dry-lease rules, the lessee (FracUse Member/Shareholder) retains complete operational control over each flight leg. Operational control, as defined under 14 CFR § 1.1, means the exercise of authority over initiating, conducting, or terminating a flight.

Flight crew services must be engaged separately by the lessee, ensuring clear separation between aircraft possession and flight operations. This crew independence requirement is fundamental to maintaining the dry-lease structure and avoiding inadvertent classification as an air carrier operation under Part 119 or Part 135.

The lessee is responsible for verifying that all flight crew members hold appropriate FAA certificates and ratings for the aircraft type and operation being conducted, and that the crew meets all applicable currency and medical requirements.

3. Truth-in-Leasing Compliance (14 CFR § 91.23)

All dry-lease agreements facilitated via the FracUse management platform comply with FAA Truth-in-Leasing requirements under 14 CFR § 91.23. This regulation requires that lease agreements for large civil aircraft and turbine-powered multiengine civil aircraft include specific provisions identifying the party responsible for operational control.

Compliance includes proper execution of the lease agreement, filing with the FAA Aircraft Registration Branch in Oklahoma City, Oklahoma, within 24 hours of execution, and carriage of the lease documentation aboard the aircraft during all flight operations conducted under the lease.

Each executed Master Dry-Lease Agreement through FracUse includes the required Truth-in-Leasing statement identifying the lessee as the party in operational control, along with the lessee's acknowledgment of their responsibilities under applicable Federal Aviation Regulations.

4. Cost-Sharing & Expense Allocation

Cost-sharing arrangements under Part 91 dry-lease structures are governed by 14 CFR § 91.501(b). Permissible cost-sharing includes the pro-rata allocation of actual operating expenses among passengers who share a common purpose for the flight. FracUse's billing architecture is designed to ensure all cost allocations remain within the bounds of permissible Part 91 cost-sharing provisions.

Fixed monthly subscription costs represent the lessee's proportionate share of aircraft ownership and management expenses. Variable operational costs, including aviation fuel, crew disbursements, and landing fees, are billed separately on a per-flight basis to maintain transparency and regulatory compliance.

5. Regulatory Compliance Responsibility

Each FracUse member, as lessee and party in operational control, bears ultimate responsibility for ensuring that all flights conducted under their lease comply with applicable Federal Aviation Regulations, including but not limited to aircraft airworthiness requirements, crew certification and currency, flight planning, and passenger manifest documentation.

FracUse provides compliance support tools and documentation through the platform dashboard, but this support does not constitute the assumption of operational control or regulatory responsibility by FracUse Aviation Mgmt Ltd.