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)