poadeleted20
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- Apr 8, 2005
- Messages
- 31,250
I gather you're the CFO's boss.1. My company CFO originally did not want me flying on business, reimbursed or not. I told him I was going to keep flying and his job was to figure out how to deal with the liability issues.
None of that is the FAA's concern.2. The company purchased an umbrella insurance policy on my flying that covers them for any associated liability. I also list the company as an additional insured on my aviation policy.
3. I ran the numbers and proved that I could save the company more money by flying myself to meetings than they would pay in insurance premiums.
That's only the IRS's concern, not the FAA's. However, there is no IRS-approved mileage rate for using private aircraft on business. The rate to which you refer only applies to reimbursement of government employees or contractors by the Federal government. The IRS allows only actual cost, which may be higher or lower than that ratem and requires documentation of that cost.4. The company reimburses me for business flights in two ways: Either the amount that the airlines charge for a ticket, provided the airports in question are served by an air carrier; or the Federal government's mileage rate for using private aircraft on business.
If you take others in the plane with you, you cannot accept any reimbursement from your employer at all. See the Mangiamele interpretation.5. I occasionally fly colleagues to meetings with me if we would all be going anyway. Sometimes they reimburse me for their pro rata share of my out-of-pocket expenses, as permitted by FAR 61.113. But usually I don't do this since I'm going to be reimbursed by my employer for the flight anyway.
As a lawyer, you must be aware the US Court of Appeals has held that the NTSB and courts are required to defer to the FAA's interpretations of its own regulations unless that interpretation is "arbitrary, capricious, or otherwise not according to law." See Administrator v. Merrell and NTSB, 190 F.3d 571 (D.C. Cir. 1999). So far, the US Court of Appeals has not found the Mangiamele interpretation or its derivatives to be "arbitrary, capricious, or otherwise not according to law," but since you are a lawyer, you are indeed welcome to try, and I wish you good luck, because I, too, think it's a bad interpretation. However, until that happens, the Mangiamele interpretation has force of law, and your pilot certificate is at risk if you accept reimbursement in violation of 61.113 as the FAA Chief Counsel has interpreted that regulation in that letter.Please keep in mind that the FAA's interpretation of FAR 61.133 in opinion letters such as Mangiamele is just that: their interpretation and their opinion. The FAA cannot make or extend laws or regulations by themselves absent public notice and comment. As a lawyer, I can assure you many if not most courts would throw out the FAA's interpretation of this particular regulation as overbroad.
Good luck. There are a lot of folks who feel it's a bad interpretation, but until you manage to get it overturned by the US Court of Appeals, your ticket is at risk if the FAA finds out you're receiving reimbursement for business flights with others aboard.I'm comfortable that my interpretation of 61.113 is more reasonable than the FAA's and that it would be upheld in court.
Again, good luck. However, in my opinion, for you to offer legal advice as an attorney that it's OK for a client of yours to violate the reimbursement restrictions in the Mangiamele interpretation would constitute legal malpractice. Anyone who accepts reimbursement in such circumstances is betting that the US Court of Appeals will overturn the Mangiamele interpretation, and that Court rarely overturns the FAA's interpretations of its own rules.I've never flown for compensation or hire, and reasonable reimbursements for business travel don't violate that element of 61.113. In my opinion, being reimbursed for flying colleagues to meetings where our common purpose is to attend the meeting is neither flying for compensation or hire NOR a violation of this regulation. And if necessary, I'm prepared to defend that in court to the hilt!
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