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[Federal Register: April 26, 2011 (Volume 76, Number 80)]
[Notices]               
[Page 23353-23354]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr26ap11-91]                         

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

 
Public Meeting: U.S. Registration of Aircraft in the Name of 
Owner Trustees

AGENCY: Federal Aviation Administration.

ACTION: Notice of public meeting.

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SUMMARY: The FAA will be holding a public meeting on Wednesday, June 1, 
2011, on the U.S. registration of aircraft in the name of owner 
trustees. The FAA is seeking the views from the public with respect to 
the use of owner trusts to register aircraft for the benefit of 
beneficiaries that are neither U.S. citizens nor resident aliens.

DATES: The meeting will be held on Wednesday, June 1, 2011, beginning 
at 9 a.m. Central Time and ending no later than 5 p.m. Central Time.

ADDRESSES: The meeting will be held at the Marriott Renaissance 
Convention Center Hotel, 10 North Broadway Avenue, Oklahoma City, OK 
73102, Phone 405-228-8000 or 1-800-468-3571.

FOR FURTHER INFORMATION CONTACT: LaDeana Peden at 405-954-3296, Office 
of Aeronautical Center Counsel, Federal Aviation Administration. 
[Assistance for the hearing impaired is available through the Sign 
Language Resource Service (SLRS), Inc. at: 1-888-842-9460 or 405-721-
0800 or http://www.SLRSinc.com.]

SUPPLEMENTARY INFORMATION: During the first part of the meeting, FAA 
will review the provisions of 49 U.S.C. 44102 and 14 CFR 47.7(c) and 
identify the issues that are relevant to compliance with those 
statutory and regulatory requirements in the context of trusts with 
foreign beneficiaries. The second part of the meeting will provide an 
opportunity for attendees to provide their views to the FAA regarding 
the appropriate application of the statute and regulations in this 
context and, in particular, to answer the specific questions set forth 
below. At some later time, after considering comments made during the 
meeting, FAA will notify the public about any further action it 
contemplates taking.
    Background: The Federal Aviation Administration has a history of 
registering U.S. civil aircraft to trustees, some of which have 
beneficiaries that are neither U.S. citizens nor resident aliens. Title 
49 U.S.C. 44102 describes the conditions under which an aircraft may be 
registered on the U.S. Civil Aircraft Registry under 49 U.S.C. 44103: 
the aircraft may not be registered under the laws of a foreign country 
and must be owned by a citizen of the United States (See 49 U.S.C. 
40102), a foreign citizen lawfully admitted for permanent residence in 
the United States, or a foreign corporation that is organized and doing 
business under the laws of the United States or a State and the 
aircraft is based and primarily used in the United States. In addition, 
14 CFR 47.7 makes special provision for trustees to register aircraft 
and, when any beneficiary of the trust is not a U.S. citizen or a 
resident alien, imposes additional requirements and limitations with 
respect to the power of such beneficiaries to influence or limit the 
exercise of the trustee's authority or to direct or remove a trustee. 
In addition, the Federal Aviation Regulations impose particular 
obligations on the owners (and not just the pilots in command and 
operators) of aircraft (See 14 CFR 91.403(a)).
    The FAA has issued several interpretations of its regulations as 
they apply to the relationship and permissible interactions between a 
trustee and beneficiaries that are not U.S. citizens or resident 
aliens, two of which have held that ``there can be no other 
relationship between the trustee and beneficiaries other than that 
created by the trust. For example, there cannot be a lessor/lessee or 
bailor/bailee relationship.'' (Interpretation 1981-56; similarly: 
Interpretation 1982-6).
    In order to clarify the appropriate interpretation and application 
of the statutes and FAA regulations in connection with the U.S. 
registration of aircraft to owner trusts with beneficiaries that are 
neither U.S. citizens nor resident aliens, the FAA seeks a discussion 
with interested members of the public. In order to have a robust and 
productive discussion with members of the public, the FAA presents the 
following questions and scenarios in order to highlight some of the 
salient issues around which it desires discussion.
    Trust Registration Questions: At this meeting, the FAA is seeking 
the views from the public on the appropriate structures for using a 
trust to register an aircraft for the benefit of a beneficiary that is 
not a U.S. citizen or resident alien. The FAA would like to hear from 
members of the public on how a trust can be structured and implemented 
for purposes of aircraft registrations that satisfy statutory and 
regulatory requirements regarding ownership and U.S. citizenship. 
Simply expressed, which practices and contractual provisions must 
exist, and which practices and contractual provisions must be 
prohibited, in order to satisfy

[[Page 23354]]

the statutory and regulatory requirements.
    In order to clarify the appropriate interpretation and application 
of statutory provisions, FAA regulations and FAA policy in connection 
with U.S. registration of aircraft to owner trustees, the FAA seeks a 
discussion with interested members of the public about the factors that 
would weigh in favor of or against a finding that a trustee is an 
``owner'' of an aircraft.
    The following questions are intended to elicit robust discussion:
    1. What are the appropriate obligations to impose on a trustee of a 
trust with beneficiaries that are neither U.S. citizens nor resident 
aliens in order to satisfy the statute and regulations?
    2. In the case of a trust with beneficiaries that are neither U.S. 
citizens nor resident aliens, which rights and actions must be 
prohibited on the part of the beneficiaries in order to satisfy the 
statute and regulations?
    3. Which forms of granting possession, use or operational control 
of an aircraft by a trustee to its beneficiaries that are not U.S. 
citizens or resident aliens are permitted and which are prohibited 
under the statute and regulations?
    4. What are the specific elements of ``the trustee's authority'' 
(14 CFR 47.7(c)(iii)) about which the FAA should be concerned, and what 
are the forms of influence or limitation that the FAA should proscribe?
    5. How may a beneficiary that is not a U.S. citizen or resident 
alien participate in the decision to remove a trustee in accordance 
with the statute and regulations?
    6. To what extent, if any, are the FAA interpretations cited above 
in need of amendment?
    7. Which, if any, knowledge and information requirements (e.g., 
address of operator, location of maintenance records, principal hangar 
location) are appropriate for the FAA to impose on trustees of trusts 
beneficiaries that are not U.S. citizens or resident aliens?

    Issued in Washington, DC on April 20, 2011.
Marc L. Warren,
Acting Chief Counsel, Federal Aviation Administration.
[FR Doc. 2011-10013 Filed 4-25-11; 8:45 am]
BILLING CODE 4910-13-P
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