Illegal Charter Operations: How the FAA Determines Operational Control

Operational control means the authority to initiate, conduct, or terminate a flight. Under 14 CFR 1.1 and 135.77, the certificate holder exercises operational control over flights conducted under their certificate. This is not a suggestion — it is the legal foundation of your authority to fly commercially.

When someone other than the certificate holder is actually directing flights — choosing routes, hiring crew, deciding go/no-go — that arrangement may constitute an illegal charter, regardless of what the contract says.

In a wet lease, the lessor provides aircraft and crew, and the lessor's certificate covers the operation. In a dry lease, the lessee provides their own crew and operates under their own certificate. Both are legal when structured correctly.

The problem arises with sham dry leases — arrangements that look like dry leases on paper but where the aircraft owner actually controls crew selection, scheduling, and flight operations. The FAA treats these as unauthorized common carriage.

The FAA evaluates four factors: (1) holding out to the public, (2) transporting persons or property, (3) for compensation or hire, (4) from place to place. If all four are met, you need a Part 135 certificate.

Many illegal charter arrangements fail on the 'holding out' element. Advertising charter services on a website, through brokers, or via social media while operating under Part 91 is textbook illegal charter.

Document your operational control for every flight. Your GOM should define who has authority to dispatch, cancel, and divert flights. Maintain records showing your dispatch and flight release process.

When entering aircraft management agreements, ensure your legal counsel reviews the operational control provisions. If the aircraft owner retains scheduling authority or crew selection, the arrangement may not be a valid Part 135 operation.

Use Navlyt TripDesk to document dispatch authority and operational control evidence for every charter trip.

Report suspected illegal charter operations to your local FSDO or through the FAA Aviation Safety Hotline. Provide specific details: tail numbers, dates, locations, and any advertising materials.

The FAA has increased enforcement in this area. Legitimate operators benefit from a level playing field where all commercial operations meet the same safety standards.