Part 295 explained: your rights when you book through a broker

Part 295 is the US Department of Transportation (DOT) rule for air charter brokers. DOT published it in the Federal Register on September 17, 2018, and it took effect on February 14, 2019. It exempts brokers from parts of federal aviation economic law, so they can sell charter flights without being airlines themselves, but only as long as they follow the rule's conditions.

The rule defines an air charter broker as a person or entity that, as an indirect air carrier, foreign indirect air carrier, or a bona fide agent, "holds out, sells, or arranges single entity charter air transportation using a direct air carrier." A direct air carrier is the company that actually provides the flight and "has control over the operational functions" of it. A single entity charter is a charter of the whole aircraft, paid for by the charterer rather than by individual passengers.

The rule applies to brokers arranging charters on both large and small aircraft. In its final rule, DOT said fractional ownership program managers and in-house corporate travel departments are not covered, because they do not provide common carriage.

Section 295.23(a) sets the advertising rule. It reads: "All solicitation materials and advertisements, including internet web pages, published or caused to be published by air charter brokers shall clearly and conspicuously state that the air charter broker is an air charter broker, and that it is not a direct air carrier or a direct foreign air carrier in operational control of aircraft, and that the air service advertised shall be provided by a properly licensed direct air carrier or direct foreign air carrier."

In plain terms, every ad and web page must make three points clearly. The company is a broker. It is not the airline in operational control of the aircraft. A properly licensed carrier will operate the flight. The rule does not set a fixed script, but all three points must be clear and easy to see.

Section 295.23(b) also covers branding. A broker may put its name and logo on an aircraft only if the name of the direct air carrier is displayed prominently and clearly, and consumers are not otherwise misled into thinking the broker is the carrier.

Part 295 does not prescribe a contract form. Instead, section 295.24 sets out what the broker must disclose before you contract for a flight or series of flights. Three items are always required: the corporate name of the direct air carrier and any other names it uses publicly, the capacity in which the broker is acting, and whether the broker holds liability insurance covering the charterer, passengers and property, with the limits.

Three more items must be given if you ask: any business relationship between the broker and the carrier that could affect the broker's choice of carrier, the total cost paid to or through the broker including fees and taxes, and any third-party fees you must pay directly, such as fuel, landing, parking or hangar fees. The rule allows these disclosures to be made electronically.

If information is unknown when you sign, or changes later, the broker must give it to you within a reasonable time after it becomes available. If the broker fails to do so, you must be offered the chance to cancel for a full refund. All required disclosures must be made before the flight starts. In 2021, NBAA reported that DOT had confirmed a broker may contract before it knows which carrier will operate the flight, as long as it then discloses the carrier within a reasonable time and offers you that cancellation right.

Section 295.26 requires brokers to make "prompt refunds of all monies paid for charter air transportation when such transportation cannot be performed or when such refunds are otherwise due."

For credit card purchases, the rule points to 14 CFR 374.3 and to Regulation Z, the federal Truth in Lending rules (it cites 12 CFR part 226). Regulation Z requires a merchant that accepts a return or forgives a debt for services to send a credit statement to your card issuer within 7 business days. The card issuer must then credit your account within 3 business days of receiving it.

For cash and check purchases, the broker must refund you within 20 days after receiving a complete refund request. Whatever the payment method, check the cancellation and refund terms in your agreement before you pay, so you know when a refund is due.

Section 295.20 bars brokers from offering, selling or arranging flights with any operator that lacks the required DOT economic authority and FAA safety authority, or that is not authorized to perform that particular service. Section 295.22 adds a general ban on unfair or deceptive practices and unfair methods of competition.

Section 295.50 lists specific practices DOT treats as unfair or deceptive. They include implying the broker is a direct air carrier, misrepresenting the aircraft, service, schedule or route, misrepresenting pilot qualifications or safety records, implying passengers are directly insured when they are not, and misrepresenting fares or charges. It also prohibits saying a specific carrier, aircraft or flight time is arranged without a binding commitment from the carrier, and selling flights the carrier cannot legally perform.

Under section 295.52, violations can lead to DOT enforcement proceedings, civil penalties and revocation of the broker's exemption authority. Willful violations can bring criminal penalties.

A legal charter in the United States is flown under Part 135 of the FAA rules, which covers on-demand and commuter operations. The FAA says Part 135 operations are subject to higher safety standards, with more stringent crew training and aircraft maintenance requirements. Part 91 sets the general operating rules for private flying, which are less stringent. Carrying paying passengers without the required Part 135 certificate is what the FAA calls an illegal charter.

The FAA warns that illegal operators avoid Part 135 requirements such as FAA oversight, crew rest rules, drug and alcohol testing and adequate passenger insurance. Its red flags include being coached on what to say if the FAA asks questions, and being unclear about who has operational control of the flight.

You can check for yourself. The FAA publishes a list of Part 135 certificate holders and their authorized aircraft, searchable by operator name or N-number, and updated weekly. If an operator or aircraft is missing, the FAA suggests contacting your local Flight Standards District Office. You can also ask the operator for its certificate and operations specifications, and report a suspected illegal charter to the FAA Hotline.

Start with the company. Put your complaint in writing and keep your quote, agreement, receipts and any messages. DOT's general advice is to give the company a chance to resolve the problem first.

If that fails, file a complaint with DOT's Office of Aviation Consumer Protection through its online form. DOT generally directs the company to respond to you, with a copy to DOT. It does not investigate every complaint individually, but it uses complaints to target reviews, and they can lead to enforcement action or new rules.

Safety concerns are different. They belong with the FAA, not DOT's consumer office. Use the FAA Hotline if you think an operator is flying illegally or unsafely.

Altivo is an air charter broker. It is not a direct air carrier, and it does not have operational control of any aircraft. Every flight Altivo arranges in the United States is operated by a properly licensed direct air carrier holding an FAA Part 135 certificate. Altivo acts as agent for its clients, the bona fide agent role that Part 295 describes.

Every Altivo quote names the Part 135 operator that will fly you. Quotes show all fees and taxes. Your agreement sets out the refund terms in writing, in line with section 295.26.

Here is our insurance disclosure, stated plainly. Altivo does not hold liability insurance covering passengers or aircraft. The operator's insurance applies to your flight.