(a) Allocations are not a property interest; they are an operating
privilege subject to absolute FAA control.
(b) Allocations are subject to the following conditions:
(1) The Administrator will re-authorize and re-distribute allocations
no earlier than two years from the effective date of this rule.
(2) Allocations that are held by the FAA at the time of reallocation
may be distributed among remaining certificate holders, proportionate to
the size of each certificate holder's allocation.
(3) The aggregate SFRA allocations will not exceed the number of
operations reported to the FAA for the base year beginning on May 1, 1997
and ending on April 30, 1998, except as adjusted to incorporate operations
occurring for the base year of April 1, 2000 and ending on March 31, 2001,
that operate at or above 14,500 feet MSL and below 18,000 feet MSL and
operations in the area affected by the eastward shift of the SFRA bounded
by longitude line 111 degrees 42 minutes east to longitude 111 degrees 36
(4) Allocations may be transferred among Part 135 or Part 121
certificate holders, subject to all of the following:
(i) Such transactions are subject to all other applicable requirements
of this chapter.
(ii) Allocations authorizing commercial air tours outside the Dragon
and Zuni Point corridors may not be transferred into the Dragon and Zuni
Point corridors. Allocations authorizing commercial air tours within the
Dragon and Zuni Point corridors may be transferred outside of the Dragon
and Zuni Point corridors.
(iii) A certificate holder must notify in writing the Las Vegas Flight
Standards District Office within 10 calendar days of a transfer of
allocations. This notification must identify the parties involved, the
type of transfer (permanent or temporary) and the number of allocations
transferred. Permanent transfers are not effective until the Flight
Standards District Office reissues the operations specifications
reflecting the transfer. Temporary transfers are effective upon
(5) An allocation will revert to the FAA upon voluntary cessation of
commercial air tours within the SFRA for any consecutive 180-day period
unless the certificate holder notifies the FSDO in writing, prior to the
expiration of the 180-day time period, of the following: the reason why
the certificate holder has not conducted any commercial air tours during
the consecutive 180-day period; and the date the certificate holder
intends on resuming commercial air tours operations. The FSDO will notify
the certificate holder of any extension to the consecutive 180-days. A
certificate holder may be granted one extension.
(6) The FAA retains the right to re-distribute, reduce, or revoke
allocations based on:
(i) Efficiency of airspace;
(ii) Voluntary surrender of allocations;
(iii) Involuntary cessation of operations; and
(iv) Aviation safety.