Fractional ownership

[KitKatPacificuk]

Do you need to have an AOC for fractional ownership?
For example if I had an aircraft and sold 100 hours to another person or company as a block, including a pilot. To do with what they pleased. Would that be classed as Charter or Fractional Ownership?

[Cathar]

My understanding is that the view of the CAA is that fractional ownership arrangements where one person/company is responsibile for the operation of the aircraft constitute public transport for the purpose of the ANO and therefore require an AOC.

The relevant articles of the ANO are as follows

Issue of air operators' certificates
Art. 6 - (1) Subject to article 7 of this Order, an aircraft registered in the United Kingdom shall not fly on any flight for the purpose of public transport, otherwise than under and in accordance with the terms of an air operator's certificate granted to the operator of the aircraft under paragraph (2), certifying that the holder of the certificate is competent to secure that aircraft operated by him on such flights as that in question are operated safely.

Public transport and aerial work
Art 130 (2) Subject to the provisions of this article, an aircraft in flight shall for the purposes of this Order be deemed to fly for the purposes of public transport:

(a) if valuable consideration is given or promised for the carriage of passengers or cargo in the aircraft on that flight;

Interpretation
Art. 129 - (1) In this Order:
'Valuable consideration' means any right, interest, profit or benefit, forbearance, detriment, loss or responsibility accruing, given, suffered or undertaken pursuant to an agreement, which is of more than a nominal nature;