Member's Home Forums General Discussion International Flying - General Topics Private Operations Letter

If your aircraft is registered in the name of a Corporation (LLC, Inc., etc.) you should prepare a Private Operations Letter ESPECIALLY if the name of the corporation the aircraft is registered to hints at anything aviation related. The Private Operations Letter is not legally required but can save you from some potentially unpleasant situations in certain countries. The Private Operations Letter should accomplish the following points:
> Use a Letterhead (Put some kind of logo if you don't have one), make it look official
> Clarify the name of the corporation on the top of the letter and it should be identical to that on the Registration Certificate of the aircraft
> State the tail number, make, model and serial number of the aircraft
> State the name(s) of the crew (Yes, even if it is you) and the names should match those on the airman Certificates
> State that the crew are authorized to fly this aircraft on international flights to the countries you plan to go to
> State that the flight is only for private purposes and that all of those on board are the owner/family of owner/friends/employees of the company on the Registration Certificate
> The owner or officer of the company should sign the document (yes, even if it is the pilot)
> Get it NOTARIZED!!

The point is to clarify that the aircraft is not stolen, that the crew is authorized to fly the aircraft outside the USA, that the flights are ONLY for private purposes (not charter) and clarifying the relationship of the crew and passengers to the owner of the aircraft.

While we recommend that this become a standard practice for international flying, it is especially important in Mexico and other Latin American countries. The present Mexican federal government is in the process of turning over major parts of the government to Mexico's military, including civil aviation. What we are seeing is an across-the-board replacement of civil aviation employees by military staff at both at the central offices as well as at the airports. These military replacements know very little about civil aviation and consequently are interpreting the civil aviation laws in unique and inconsistent manners. Therefore, we strongly urge pilots flying to Mexico to take a Private Operations Letter with them.

CST Members can find a template on the Documents and Equipment page of the CST Member Website

The issue is who is on the Registration Certificate as the owner. If the aircraft is registered to a person and that person is on board the aircraft then it is less of an issue because you can draw a line between the aircraft and owner. It becomes a problem if the aircraft is registered to a different person or to a corporation. If the corporation has an "aviation sounding" name, then it is an even bigger problem. There are several issues when it pertains to Mexico.

CABOTAGE: Under Mexican Civil Aviation Law, the tail number of a Mexican aircraft denotes its use and the permits they must posses to operate accordingly: XA-Commercial, XB-Private, XC-Government. So, an XA registered aircraft, e.g. XA-ABC, must have an air charter permit, commercial pilots, etc. regardless of what type of operation it is making even if the owner of the aircraft is on board. If the owner wants to fly his own aircraft then he must be commercial rated and on the AOC. To be a Mexican commercial pilot you must be Mexican by birth and have not acquired a second nationality. However, with US, Canadian and most other countries, the use denotes what kind of permits are required so a US registered aircraft could be flown privately, be on an air charter certificate and also used for flight training. The use will denote the permits and maintenance requirements. Mexican CAA has historically had a difficult time wrapping their heads around this concept given their own regulations and they are looking for "something" that denotes the authorized use of a US/Canadian registered aircraft that has arrived in Mexico. Therefore, an aircraft registered under a name like "Professional Aviation Services LLC" would be a sitting duck to be confused as a commercial (charter) flight even if it is ONLY used for private operations. If you are mistaken for a commercial operator, Mexican CAA will be asking you for your FAA AOC, Mexican Air Charter permit, Worldwide Insurance, Mexican Insurance, etc. and flights within Mexico would be denied as that would be considered cabotage.

OWNER NOT ON BOARD: If the aircraft is registered in the name of an individual and that person is not on board, that can also provoke misunderstandings. Any friends using the aircraft could also be mistaken as paying passengers. If the aircraft is registered to a corporation, then you definitely want to establish who the owner is and be able to "draw a line" from the owner, to the aircraft, to the crew and to the passengers so that you can establish the relationships of all of them to the owner. Now on the positive side, this could be a great way to lose the mother-in-law somewhere in Mexico.......

CREW: Unfortunately, drug traffickers like to use private aircraft, both piston and gas turbine, for moving drugs. Often times, these aircraft have been stolen pr purchased under suspicious circumstances. Hence, private aircraft are often viewed under a suspicious eye. As a crew member, you want it to be clear that you have been authorized by the legal owner of the aircraft to be operating it to a foreign country.

MEXICAN IMMIGRATION: Article 14A of the Mexican tax code spells out special fees to be charged if you make an international arrival or departure outside of certain hours, on official holidays or on the weekend. That same article says that in the case of private aircraft being used privately, then those fees do not apply. having the letter stating that you are making a PRIVATE flight gives you the proof to avoid these fees and most especially if the aircraft is on the name of a corporation.

OTHER: One issue we see occasionally is where the PIC has a Private Pilot Airman Certificate or has and ATP/Commercial but is operating with 3'rd Class Medical Certificate privileges. When asked what their relationship is to the owner the response is that they are a "friend" of the owner and that they are flying the plane as a "favor". When asked who is paying for the 4 Seasons hotel they will be staying at, the meals they will be eating, etc. the answer is often that the owner is paying. Whether it is legitimately a favor or the pilot has just realized that their Medical has lapsed from 2'nd Class to 3'rd, I do not know but I would encourage pilots to avoid putting themself in such a situation because I think it will be very difficult to prove that there was not any compensation being received. If you are truly doing it as a favor then be sure that all of the expenses related to your stay are paid by you and the receipts are in your name so that it cannot be perceived that you have received benefits "in kind".

The key thing is to have this letter with you before you arrive. Otherwise, you will only have your charming smile to defend you. Get the letter notarized (they love seals and stamps and all that official looking stuff) and have it in your files so that IF it is needed, you already have it. I would not offer it unless it becomes necessary.