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FAA Extends NBAA Small Aircraft Exemption Through 2028

The FAA extends NBAA Small Aircraft Exemption No. 7897N through 2028, allowing flexible cost-sharing and maintenance for small aircraft operators.

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This article is based on an official press release from National Business Aviation Association (NBAA).

FAA Extends NBAA Small Aircraft Exemption Through 2028

The Federal Aviation Administration (FAA) has officially extended the NBAA Small Aircraft Exemption through March 31, 2028. Announced on March 16, 2026, the newly issued exemption, officially designated as Exemption No. 7897N, replaces the outgoing Exemption 7897M, which was set to expire at the end of the month.

This regulatory extension allows National Business Aviation Association (NBAA) members operating smaller aircraft, such as piston-powered airplanes, rotorcraft, and aircraft weighing 12,500 pounds or less, to continue utilizing flexible cost-sharing and maintenance provisions. According to the NBAA press release, these operational flexibilities are typically reserved only for operators of larger, turbine-powered aircraft.

For business aviation operators, this exemption remains a critical tool for leveling the playing field. It enables smaller flight departments to leverage specific federal provisions for cost reimbursement and operational agreements that would otherwise be inaccessible under standard regulations.

Understanding the Small Aircraft Exemption

Under standard Federal Aviation Regulations (FARs), specifically Part 91 Subpart F, operators are granted certain flexibilities regarding cost-reimbursement and aircraft sharing. However, the FAA normally restricts these benefits to aircraft with a maximum takeoff weight of over 12,500 pounds, multi-engine turbojet aircraft regardless of size, and fractional ownership program aircraft.

The NBAA Exemption, known historically as the 7897 series, bridges this regulatory gap. It grants eligible NBAA members the ability to leverage the same Part 91 Subpart F provisions. Key benefits unlocked by the exemption include limited cost-reimbursement for specific flights, such as transporting guests on a company aircraft, the ability to enter into time-sharing, interchange, and joint ownership agreements, and the flexibility to use alternative maintenance and inspection programs.

Industry Perspective

The extension was welcomed by industry advocates who view the exemption as a cornerstone of small aircraft operations. In a statement regarding the renewal, the NBAA highlighted the historical importance of the regulatory relief:

“For many years, this important exemption has enabled NBAA members operating piston-powered aircraft, small airplanes and rotorcraft to take advantage of the cost-sharing provisions in Part 91 Subpart F. Members intending to use this exemption should carefully review and comply with all applicable conditions and limitations of the extended NBAA Small Aircraft Exemption.”

, Doug Carr, NBAA Senior Vice President of Safety, Security, Sustainability, and International Affairs

Compliance and Operational Requirements for 2026–2028

To maintain compliance with the FAA under the newly issued Exemption 7897N, operators must adhere to specific documentation and membership requirements. The NBAA emphasizes that the exemption is strictly limited to active members; if an operator’s membership lapses, they are no longer legally protected by the exemption.

Steps for Current and New Users

For operators already flying under the expiring Exemption 7897M, the transition is straightforward. According to the provided research, these current users do not need to submit a new Letter of Intent to the FAA. They are, however, legally required to download the new Exemption 7897N document and carry it on board their aircraft at all times.

Conversely, NBAA members wishing to utilize this exemption for the first time must complete a formal filing. New users are required to submit a “Letter of Intent”, also known as a Notice of Joinder, to the Federal Register Docket prior to conducting any operations under the exemption. This document must include the member’s legal name and the legal name of the authorized representative submitting the paperwork.

AirPro News analysis

We view the FAA’s timely renewal of Exemption 7897N as a vital stabilizing factor for the small business aviation sector. By extending these provisions through 2028, the FAA is acknowledging the operational realities of smaller flight departments and rotorcraft operators who rely on cost-sharing to maintain viable operations. Without this exemption, many small-to-midsize enterprises would face disproportionate regulatory burdens compared to their larger corporate counterparts operating heavy jets. Ensuring that operators understand the distinction between current user requirements and new user filings will be critical to avoiding inadvertent compliance violations over the next two years.

Frequently Asked Questions (FAQ)

When does the new NBAA Small Aircraft Exemption expire?
The newly issued Exemption No. 7897N is valid through March 31, 2028.
Do existing users need to file new paperwork with the FAA?
No. Current users operating under the outgoing Exemption 7897M do not need to submit a new Letter of Intent, but they must download and carry the new 7897N document on board their aircraft.
Who is eligible for this exemption?
The exemption is available to active NBAA members operating piston-powered aircraft, small airplanes weighing 12,500 pounds or less, and rotorcraft.

Sources: National Business Aviation Association (NBAA)

Photo Credit: NBAA

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Business Aviation

Bombardier and Rolls-Royce Launch Global 5500 6500 Health Monitoring

Bombardier and Rolls-Royce integrate Smart Link Plus with Pearl 15 EVHMU for real-time engine health monitoring on Global 5500 and 6500 jets.

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Bombardier and Rolls-Royce have launched an integrated aircraft health monitoring program for the Global 5500 and 6500 business jets, enabling real-time engine data transmission to ground support teams to minimize operational downtime.

Announced in a press release on June 25, 2026, the upgrade combines Bombardier’s Smart Link Plus system with the Rolls-Royce engine vibration and health monitoring unit (EVHMU). The integration allows flight crews and maintenance personnel to proactively troubleshoot in-flight alerts by automatically sending data to the Rolls-Royce 24/7 Business Aviation Aircraft Availability Centre during and after each flight.

System capabilities and data integration

The joint program focuses on the Rolls-Royce Pearl 15 engines that power the Global 5500 and 6500 aircraft. Through the EVHMU, the system accesses approximately 10,000 engine performance and health parameters. This telemetry is then routed through the aircraft’s Smart Link Plus infrastructure to provide a comprehensive diagnostic picture to ground crews before the aircraft lands.

Anthony Cox, Bombardier’s Vice President of Customer Support, stated the integration allows operators to “seamlessly benefit from enhanced end-to-end data services that help optimize aircraft performance and reliability while continuing to keep maintenance costs in check.”

Fleet adoption and service availability

Bombardier reports that approximately 450 of its aircraft are currently flying with the Smart Link Plus service. The manufacturer noted a 99 percent renewal rate among current operators using the platform, indicating strong market reception for connected aircraft data services.

The new EVHMU integration upgrades are currently available for installation at Bombardier Service Centres worldwide. Cox described the collaboration as a first in business aviation, emphasizing the joint effort between the technical teams of both original equipment manufacturers to streamline customer operations.

AirPro News analysis

The integration of airframe and powerplant health monitoring systems represents a growing trend in business aviation maintenance. By bridging the gap between Bombardier’s airframe data network and Rolls-Royce’s engine telemetry, the two manufacturers are reducing the diagnostic burden on operators. We view this as a necessary evolution for ultra-long-range business jets, where dispatch reliability is a primary competitive metric. The high renewal rate for the existing Smart Link Plus program suggests operators are already seeing a return on investment from predictive maintenance capabilities.

Sources: Bombardier Inc.

Photo Credit: Bombardier Inc.

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Business Aviation

EU Court Annuls Business Aviation Green Taxonomy Exclusion

The EU General Court overturned a 2023 rule barring business aircraft makers from the European green taxonomy on June 24, 2026.

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The General Court of the European Union has annulled a 2023 European Commission directive that excluded business aircraft manufacturing from the bloc’s sustainable finance framework. The June 24, 2026 ruling prevents a blanket ban on green financing for the sector, distinguishing the environmental footprint of aircraft production from flight operations.

In a press release issued on June 24, 2026, Dassault Aviation welcomed the decision, which concludes a legal challenge the French aerospace manufacturer initiated on July 4, 2024. The original European Commission policy, adopted in June 2023 as part of the Climate Delegated Act, had categorized business aviation manufacturing as ineligible for the European green taxonomy, a classification system designed to direct capital toward sustainability.

Legal challenge and court findings

Dassault Aviation filed the lawsuit in Luxembourg, arguing that the European Commission failed to account for the industry’s specific operational profiles and decarbonization investments. The manufacturer was supported in the proceedings by the European Business Aviation Association (EBAA) and French aerospace company Daher, who intervened on behalf of the sector.

The court’s ruling centered on the distinction between the emissions generated during the manufacturing process and those produced during aircraft operations. According to reporting by Corporate Jet Investor and Global Banking & Finance Review, the judges noted that the European Commission did not sufficiently prove that other transport modes serve as credible, low-carbon alternatives to the specific connectivity and flexibility provided by business jets.

In its official statement, Dassault Aviation noted that the 2023 decision “blatantly failed to consider the specific characteristics of business aviation and its role in certain missions.”

Industry reaction and financial implications

The business aviation sector has faced mounting regulatory pressure in Europe regarding its carbon footprint. Exclusion from the green taxonomy threatened to limit manufacturers’ access to favorable financing terms, despite ongoing industry investments in Sustainable Aviation Fuels (SAF), advanced composite materials, and aerodynamic efficiency improvements.

The EBAA praised the annulment as a necessary correction to European environmental policy.

“The court’s judgment marks a significant and welcome development. It restores a more evidence-based and technology-neutral approach to sustainable finance rules,” the EBAA stated following the ruling.

An EBAA spokesperson added that the decision represents an important recognition that the sector cannot be excluded from sustainable finance based on blanket assumptions.

Dassault Aviation, which reported €7.4 billion in revenues and employed approximately 15,000 people in 2025, views the ruling as validation of its manufacturing practices. The company has delivered over 10,000 military and civil aircraft over its 110-year history, including 2,800 aircraft from its Falcon business jet family.

AirPro News analysis

We view this ruling as a critical precedent for aerospace manufacturers navigating the European Union’s complex environmental regulations. By forcing regulators to separate the industrial process of building an aircraft from the emissions generated by the end-user, the General Court has provided a pathway for manufacturers to qualify for green financing based on their factory-level sustainability and research into low-emission technologies. The European Commission now has a two-month window to appeal the decision to the European Court of Justice (ECJ). If the ruling stands, it will likely prompt a revision of the Climate Delegated Act to include specific, technology-neutral sustainability criteria for business aircraft production rather than an outright exclusion.

Sources: Dassault Aviation

Photo Credit: Dassault Aviation

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De Havilland Canada Delivers First Twin Otter Classic 300-G

De Havilland Canada delivers the first DHC-6 Twin Otter Classic 300-G to Swiss operator Zimex Aviation, its first EASA operator.

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De Havilland Aircraft of Canada Limited has delivered the first production DHC-6 Twin Otter Classic 300-G to Swiss operator Zimex Aviation Ltd., marking the official entry into service of the fifth-generation utility aircraft.

Announced in a company press release on June 24, 2026, the handover of aircraft serial number 998 establishes Zimex Aviation as the first European Union Aviation Safety Agency (EASA) operator of the new variant. The delivery fulfills an initial purchase agreement for two aircraft signed at the 2023 Paris International Air Shows.

Technical enhancements and fleet standardization

The Classic 300-G introduces several design changes aimed at increasing payload capacity and operational efficiency. According to De Havilland Canada, the new variant features a lighter airframe and a completely redesigned cabin interior. The updated passenger seats are 15 percent lighter than those in previous generations, contributing to a reduction in the aircraft’s basic empty weight.

A primary technological shift for the Classic 300-G is the integration of the Garmin G1000NXi Integrated Flight Deck, which replaces the Honeywell Primus Apex system utilized on the preceding Series 400 aircraft. To standardize its operations, Zimex Aviation signed a separate agreement in July 2024 to retrofit its existing Twin Otter Series 400 fleet with newly certified Garmin avionics packages.

Extending a 56-year operational history

Zimex Aviation has utilized Twin Otter aircraft for 56 years, operating in remote and demanding environments globally. The operator previously served as the launch customer for the Twin Otter Series 400 in 2010.

De Havilland Canada Vice President of Sales and Marketing Ryan DeBrusk stated that Zimex has built an exceptional reputation operating the aircraft type worldwide.

“We are proud to support their mission with the latest evolution of the Twin Otter, combining proven capability with modern enhancements that will serve their operations for years to come,” DeBrusk said in the release.

Zimex Aviation Chief Executive Officer Daniele Cereghetti noted the aircraft’s historical importance to the company’s operations.

“We can confidently say that Twin Otter aircraft have been the backbone of our business for the last 56 years,” Cereghetti said. “We are delighted to welcome this aircraft into our fleet and look forward to deploying it across our global operations.”

AirPro News analysis

We view the delivery of the Classic 300-G as a critical milestone for De Havilland Canada’s continued presence in the rugged utility turboprop sector. By transitioning to the Garmin G1000NXi, the manufacturer aligns the Twin Otter with modern pilot training pipelines and simplifies maintenance. For operators like Zimex, standardizing avionics across mixed-generation fleets reduces training overhead and streamlines dispatch reliability in the remote regions where these aircraft typically operate. The focus on weight reduction also directly addresses operator demands for improved payload margins in austere environments.

Sources: De Havilland Aircraft of Canada Limited

Photo Credit: De Havilland Aircraft of Canada Limited

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