Time sharing is defined in 14 CFR 91.501(c)(1) of the Federal Aviation Regulations (FARs) as an "arrangement whereby a person leases his airplane with flight crew to another person, and no charge is made for the flights conducted under that arrangement other than those specified in paragraph (d) of this section."
Through the use of a time-sharing agreement, an aircraft operator is able to seek limited reimbursement for a flight. Under this agreement, a company is permitted to lease its aircraft, with flight crew, to another individual or company. In return, the aircraft operator is permitted to receive reimbursement for a specific list of out-of-pocket expenses associated with the flight, including an amount equal to twice the cost of fuel used on the flight. The following charges are allowed under FAR 91.501(d):
- Charges for fuel, oil, lubricants, and other additives.
- Charges for travel expenses of the crew, including food, lodging and ground transportation.
- Hangar and tie-down costs away from the aircraft's base of operation.
- Charges for insurance obtained for a specific flight.
- Charges for landing fees, airport taxes, and similar assessments.
- Charges for Customs, foreign permits, and similar fees directly related to a flight.
- Charges for in-flight food and beverages.
- Charges for passenger ground transportation.
- Charges for flight planning and weather contract services.
- An additional charge equal to 100 percent of the expenses listed in paragraph (d)(1) of this section.
- Only U.S. registered aircraft that are eligible to operate under FAR Part 91 Subpart F may utilize a timeshare 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 multiengine turbojet aircraft (regardless of size), or;
• The aircraft is a fractional program aircraft (regardless of size).