As travel has rebounded in the past few years and airline startups seek creative ways to enter the market, a growing number have turned to a niche area of regulation: the public charter model under 14 C.F.R. Part 380 (“Part 380”) of the Federal Aviation Regulations (“FARs”). These public charter services operate numerous scheduled flights to major cities, often using executive airports, which also enables them to serve nearby rural areas. Because of how they’re structured, public charter operators don’t have to follow all the same FARs that apply to major airlines like American Airlines or Delta Airlines. However, we are starting to see a shift in the regulations and considerations for operating public charters that may bring regulatory headwinds to the industry. So, fasten your seatbelt…
HOW DO PUBLIC CHARTER AIRLINES OPERATE?
Under the governance of the Department of Transportation (“DOT”), the law under 14 C.F.R. Part 380 enables public charter operators to contract with direct air carriers. These direct air carriers provide and fly the aircraft while the public charter operators remain responsible for scheduling and selling the flights. Part 380 is an economic rule of the DOT, and thus, it does not impose the same level of operational or safety regulations that are separately governed under Parts 121 (regularly scheduled air carriers) and 135 (commercial, non-scheduled air services) of the FARs.
Key Distinctions include:
- Governing Body: Traditional airlines and private charters are governed by the Federal Aviation Administration (“FAA”), while public charters are governed by the DOT (with FAA oversight).
- Scheduling: Part 121 airlines operate fixed schedules (like American Airlines), Part 135 charters are on-demand (such as chartered jets or air taxis), but Part 380 public charters allow ticketed charter flights. Public charters may operate on a one-way or round-trip basis with no minimum group size and may be conducted as ‘‘on-demand operations’’ if the aircraft operator is using airplanes, including turbo-jet powered airplanes, with 30 or fewer passenger seats.
- Aircraft Size: Part 121 covers large aircraft, Part 135 is limited to smaller aircraft, and Part 380 includes leased aircraft from certified air carriers.
- Safety Standards: Part 121 airlines have the highest safety requirements, followed by Part 135 private charters, while Part 380 public charters have different applicable safety regulations.
Larger companies using the public charter model, such as JSX Air (“JSX”) and SkyWest Charters (“SWC”), operate under a vertically integrated structure that combines both Part 380 and Part 135 regulations. According to its website, JSX operates flights using Embraer E135 or E145 aircraft through Delux Public Charter, LLC (doing business as JSX Air), which holds an FAA Air Carrier Certificate (4DPA097O) under Part 135 and a DOT commuter air carrier authorization under Part 380. These flights are sold as public charters by JetSuiteX, Inc., the charter operator, with Delux Public Charter, LLC acting as the direct air carrier. All operations are subject to DOT Public Charter Regulations under 14 C.F.R. Part 380, with Public Charter numbers PC# 23-113 and PC# 24-095. In comparison, SWC states on its website that it is a subsidiary of SkyWest, Inc., and benefits from the infrastructure already established by its parent company.
The public likes to think that Part 380 carriers are just “small” airlines that offer routes to different destinations and provide alternative options to traditional air carriers. The DOT made clear that public charter operators may not function as de facto airlines without obtaining full economic authority under 49 U.S.C. § 41101 (air carrier certificates). Violations can lead to lawsuits and civil penalties, or even criminal enforcement. In the past, several operators have faced enforcement action for misrepresenting their status or selling flights before filing an approved charter prospectus, underscoring how strictly the DOT polices this regulatory boundary.
As more companies have entered the charter market, the FAA has started scrutinizing public charter operations. A concern of the FAA is that the public charter operations may appear “essentially indistinguishable from flights conducted by air carriers.”
The FAA indicated it was considering removing the exceptions for Part 380 operators from certain FAR definitions and “delinking” the FAA’s safety regulations from DOT’s economic regulations. This consideration was likely in the works for some time, but certainly companies like JSX have been at the forefront of the discussion that led to the FAA’s action seeking to amend its regulatory framework.
Separately, but relatedly, the Transportation Security Administration (“TSA”) conducted a thorough review of the security risks and safety protocols of certain operators and made its own regulatory changes that affect public charters as well.
WHAT LED TO THE FAA’S NEW RULE-MAKING PROPOSAL REGARDING PUBLIC CHARTER AIRLINES?
- July 2023: The Air Line Pilots Association (“ALPA”) called on the DOT to close what it describes as a “loophole” in Part 135. The ALPA argued JSX was exploiting a loophole in the regulations to get around the FAA’s safety requirements and other regulations.
- August 2023: The FAA announced its intent to initiate a rulemaking process to address its own concerns that public charters are operating in a manner indistinguishable from Part 121 or air carrier operations.
- October 10, 2023: JSX responded by claiming no loophole exists because it is operating under specific regulations. It also called for support and comment to the FAA.
- October 13, 2023: Several leading aviation groups joined to comment on the FAA’s notice of proposed changes to regulations, specifically regarding the impact on Part 135 charter operators. There was strong opposition from major aviation groups like the National Business Aviation Association, General Aviation Manufacturers Association, and National Air Transportation Association, who published comments affirming the safety of public charters and warning of the negative effects this reform would have on service to small and underserved communities, emerging aviation models, and overall competition in air service.
- June 2024: The FAA announced plans to initiate a rulemaking process aimed at amending the definitions of “scheduled,” “on demand,” and “supplemental” operations under Part 110 to ensure that public charters are subject to the same safety parameters as scheduled operations.
- The FAA also stated it was convening a panel to explore a new operating authority for scheduled Part 135 operations using 10–30 seat aircraft, particularly to support small and rural community air service.
- August 2024: The “Safer Skies Act” was introduced in Congress, which would expand the security screening requirements for public charter operators (and private charters).
- January 2025: The TSA finalized changes to the Twelve-Five Standard Security Program (“TFSSP”) for public charter flights operating under Part 380.
- July 2025: TSA’s new security rules for public charter flights are expected to take effect in July 2025 after a 180-day grace period, which requires charter operators to screen passengers and belongings using TSA-approved equipment and processes even when flying out of private terminals.
- As of today, the FAA has yet to publish a Notice of Proposed Rulemaking regarding the definition changes to Part 110, although it announced in June 2024 that it intended to issue the notice “expeditiously.”
WHAT CAN PUBLIC CHARTER AIRLINES EXPECT UNDER THE NEW FAA RULES?
Most importantly, even the FAA recognized that if it amended its regulatory framework as contemplated, some operators conducting public charter operations would need to transition from operating under Part 135 to Part 121 or even adjust their service models. The FAA stated that if it were to adopt a rule, it would allow a reasonable time for operators to obtain the appropriate certificates and authorizations. This requirement could be a cost-prohibitive transition for some public charters.
The FAA also recognized that there may be unintended effects on service to small and underserved communities and even potential impacts on competition, innovation, and emerging technologies. The public charter operators often fly to smaller airports surrounding larger metro areas and are often a vital component in the economic development of an area. Further, proponents of the current public charter model argue that eliminating the flexible business model created by using a combination of Parts 380 and 135 could drastically reduce accessible air transportation for small communities. This limitation would impede the commercial growth and innovation that public charter operators have been working towards.
Proponents of the current public charter model contend that the regulatory structure enables operators to introduce essential competition into a marketplace dominated by a few major airlines. In fact, these groups often argue that the major airlines pushing for regulatory change are doing so out of fear of competition rather than the safety concerns they commonly cite. However, the FAA is concerned with the public’s perception that public charters are regulated the same as Part 121 or Part 135 operators when they are not.
As a result of the new TSA requirements, many public charters are now required to screen passengers and belongings using TSA-approved equipment and/or processes even when flying out of private terminals. These changes to security procedures undermine one of the primary benefits of public charters: bypassing long TSA lines and luggage restrictions. The lines and wait time through TSA security is still substantially reduced with public charters due to the smaller passenger capacity. Also, the additional security measures may be a value-add to concerned members of the public. Ultimately, however, the increased operational costs would likely result in higher ticket prices, which, in conjunction with longer waiting times, could turn some customers away from public charters.
WHAT’S NEXT?
If you or your clients are in the public charter business, it’s time to fasten your seatbelts as the new TSA changes begin to take effect and the FAA considers its rule-making proposals.
* Many thanks to our summer clerk Mary Grace Hutzler for her contributions to this article.
