Leonard Rabinowitz and M. Carole Rabinowitz - Page 10

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          aircraft for profit (such as, for example, a jet owned by an                 
          individual and used only by that individual and family) would                
          obtain a certificate under FAA rule 91, and a scheduled airline              
          would obtain a certificate under FAA rule 121.                               
               The FAA requirements to maintain a rule 135 certificate are             
          more onerous than the FAA requirements for aircraft that are not             
          chartered to the general public.  For example, the FAA requires              
          pilots to be trained to certain standards and also requires                  
          higher maintenance standards than those specified for jets not               
          operated with a rule 135 certificate.  The FAA also requires both            
          a maintenance manual and an operations manual to maintain a rule             
          135 certificate, and Federal excise tax must be charged on all               
          flights.  Mr. Rabinowitz estimated that it cost approximately                
          several hundred thousand dollars per year to maintain a rule 135             
          certificate pursuant to the FAA standards, absent the excise tax.            
          Marketing of the Jet Charter Activity                                        
               Petitioners marketed their jet charter activity in several              
          ways.  Mr. Rabinowitz understood from the industry that the most             
          likely charter customers were individuals or companies that                  
          themselves owned private aircraft but whose jets were unavailable            
          to them for various reasons.  Therefore, Mr. Rabinowitz contacted            
          other aircraft owners to inform them that he had the Falcon and a            
          rule 135 certificate, and that he would like their business.  Mr.            
          Rabinowitz also asked the chief pilot to solicit business by                 
          contacting other flight departments and pitching BHJ when he was             
          not flying the Falcon.  Mr. Rabinowitz paid the chief pilot a                





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