A single entity charter exists when an individual or company contracts and pays for the operation of an entire airplane (as opposed to one or two seats, or a group of seats, on an airplane). Individual passengers on single entity charters do not pay their own airfare. The individual or company that contracted for the operation of the airplane must bear the entire cost of travel and cannot sell individual seats on the aircraft. For example, when a business charters an entire aircraft to fly the executives to a meeting, the individual executives and employees do not pay for their individual seats on the aircraft.
In Texas, a single entity charter is governed by both federal and state regulations. The Federal Aviation Administration (FAA) sets forth rules for charter operations under the Federal Aviation Regulations (FARs). According to these regulations, a single entity charter involves an individual or company contracting for the use of the entire aircraft, rather than purchasing individual seats. The entity that charters the aircraft is responsible for the entire cost of the flight and is prohibited from selling seats to individual passengers. This type of charter is often used for corporate travel, where a business may charter a plane to transport employees to meetings or events. Texas does not have specific state statutes that directly address single entity charters, as the operation of aircraft charters is largely under federal jurisdiction. However, Texas state law would require that any business operating within the state comply with applicable federal regulations, as well as state laws concerning business operations, taxation, and consumer protection as they pertain to the transaction and operation of the charter.
