An interchange agreement is defined in 14 CFR 91.501 (c)(2) of the Federal Aviation Regulations (FARs) as an "arrangement whereby a person leases his airplane to another person in exchange for equal time, when needed, on the other person's airplane, and no charge, assessment, or fee is made, except that a charge may be made not to exceed the difference between the cost of owning, operating, and maintaining the two airplanes."
Interchange is a very narrow arrangement useful for two (or more) companies, each of which owns an aircraft, to swap time. The exchange of time must be hour-for-hour, but an hourly charge for the difference in operating costs between the aircraft can be made.
Only U.S. registered aircraft that are eligible to operate under FAR Part 91 Subpart F may utilize a interchange agreement. To be eligible, the aircraft must fall into one of the following groups:
- The aircraft has a maximum takeoff weight of over 12,500 pounds, or;
- The aircraft is a multi-engine turbojet aircraft (regardless of size), or;
- The aircraft is a fractional program aircraft (regardless of size).