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# m 3 Lesli eH . Arps , Esq . Skadden , Arps , Slate , Meaghe r 6 Flo m Counse l fo r Executiv e M r Flee t > Corporatio n 91 9 Thir dAvenu e Ne wYork , New . Yor k 1002 2 Dea r Mr . Arps : 

## U^ 2 ' U , /'^ / I nyou r Septembe r 6 , 197 3 lette r yo uhav e aske dfo r ou r opinio na s t o whether, , i nth e circjomstance B described-in . you r letter , -EiecuClv e Ai r Flee t Corporation ' (£AF)-ha s "exclusiv e use " o f th e aircraf t lliate do n It s operation s specification s pursuan t to'f i 121.155(d ) o f th e Federa l Aviatio nRegulations , I nyou r lette r yo uprovid e th e followin g facts : EA F i s a Delawar e corporation , wltl i It s principa l plac e o f busines s a t Teterbor o Airport , Teterboro , Ne wJersey ; I t hold s a nAi r Taxi/Coinnercla l Operato r certificat e ("Certificate'" ^ Issue dunde r th e Federa l Aviatio n Regulation s Par t 13 5 .and, - amon g othe r things , conduct s an-^/^

. ai r tax i charte r operatio nunde r an.exemptio nfro mth e Civi l C L Aeronautic s Boar dpursuan t t o Par t 29 8 o f th e Board' s Economi c | & Regulations . EA F perfora s managemen t an dconsultin g service s fo r it s client s (^'Clients" ) wh o ow n[o r have , a long-ter mdr yleas e o f an ] executive . JG t aircraft . i.Th e Cltcnt B consis t o f larg e corporations. , and . wealthyindividuals- , wh o ow naircraf t fo r th e purpos e o f transportin g thei r own-corporate'executive s o r themselves,..as . th e cas e may . be , and ' thei r guests . Th e Client s operat e thei r aircraf t unde r th e Federa l Aviatio n Hegulatlon s Par t 91 . Pursuan t t o contract s betwee nEA F an dsuchiClients , EA F perform s a:multitud e o f advisor y function s relate dt o th e Clients * operatio no f thei r aircraft .

Fou r o f EAF' s presen t Client s hav e detenulne dtha t i norde r t o utiliz e thei r aircraf t ,efficientl yI t woul db e desirabl e t o hav e thei r aircraft**chartere dt o chir dpartie s fro mtim e t o tinj e whe nno t bein g use db ythem . I norde r t o accomplis hthis , EA F charter s th e aircraf t fo r the owner s unde r It s Certificate . ** * CONCURRENCE S RTG . SYMBO L

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TE P I norde r t o obtai ncontro l o f th e airctraf c a a require dI n 121.155'fo r th e purpos e o f conductin g suc hcharte r flights , EA F amende dth e bdsl c managemen t contract s wit hsuc hClient s t o provide , amon g othe r things , a s follows : (a ) Th e Clien t rellnqulahe s contro l o f al l operaclon a o f th e aircraf t t o EA F wit hrespec t t o charte r flight s andEA F ha s cxclualv e contro l ove r th e operatio no f th e charte r flights . (b ) I norde r fo r EA F t o gai ncontro l o f th e maintenanc e progra m

a s require dbythe FA AI nconnectio nwit hcharte r operations , th e Clien t grant s C o EA F th e righ t t o adop t the require dmaintenanc e program . Thi s maintenanc e progra m adopte dbyEAF " l e continuou s whethe r EA T i s operatin g a • charter - o r whethe r th e Clien t I s operatin g th e aircraf t fo r hi s ow naccount . (c ) Th e Client.agree s t o payanyandal l cost s o f th e operation s o f th e aircraf t fo r th e charte r flights , includin g anyadditiona l cost s o f th e maintenanc e progra m adopte dbyEA F o r additiona l cre wcoat s du e t o EAF' s decisio nt o assig nt osuc hcharte r fllghts » crew s othe r tha nth e on e ordinaril yassigne dt o th e Client' s us e o f hi a aircraft . Unde r the.presen t agreement s consistin g o f the Aircraf t Managemen t Agreemen t andth e Charte r Amendment , th e Clien t yield s contro l o f th e aircraf t t o EAF fo r th e sol e purpos e o f conductin g charte r flight s unde r EAF' s Certificat e an da t al l othe r time a th e aircraf t i s unde r th e contro l o f th e Clien t fo r hi e ownoperatio nan dus e unde r FARPer t 91 . Sectio n121.155(a)(1 ) require s tha t eac haupplementa l ai r carrie r o r commercia l operator , hav e exclusiv e us e o f anyaircraf t I t uses . Paragrap h(d ) o f % 121.15 5 define s exclusiv e us e a s th e sol e possession, - control , an

dus e o f th e aircraf t fo r flights , a a oimer , o r unde r a writte nagreemen t (includin g agreement s fo r the performanc e o f require d maintenance ) givin g th e certificat e holde r tha t posaession , control , ari d us e fo r a t leas t si xmonths . CONCURHEN a RTG . SYMBO L IHIITALS/SIG . DAT E RTG . SYMBO L IN.ITIALS/SIG . DAT E RTG . SYMBO L INIirALS/SIG . DAT E R f G . SYMBO L wrrwis/sio " DAT E RTG . SYMBO L iNITlALS/SlG! " DAT E RTG . SYMBO L INITIAL5/SIG . DAT E RTG . SYMBO L INinALS/SlG . DAT E RTG . SYMBO L TNITIALS/SIG . DAT E

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unde r EAF' s Ai r Taxl/Coimnercia l Operato r Operatin g Certificat e th e air craf t wil l b e "unde r th e contro l o f th e clien t fo r hi s ow noperatio n unde r FA RPar t 91. " Accordingly , EA F woul dno t hav e sol e possession , control , an

dus e o f th e aircraf t durin g the perio do f th e writte nagree ' raent betwee nI t an dIt s client . . I t i s th e opinio no f thi s offic e that , unde r th e circumstance s yo uhav e described . Executiv e Ai r Flee t Corporatio nifl^ul dho t hav e "exclusiv e use " o f the subjec t aircraf t withi nth e meanin g o f i 121,155 . Sincerely , ORIGINA LSIGNE D B Y R ' G . LEARY^

. . /. DEWE YR . ROARK

, JR . • Assistan t

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