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Air taxi operator means an aircraft operator who carries the operations in an aircraft with 30 or fewer passenger seats and a payload capacity of 7,500# or less, for hire or compensation. An air taxi operator operates on-demand basis and does not have the flight scheduled qualifications of a commuter. Pursuant to 14 CFR 298.21, an air taxi operator is required to register with the Civil Aeronautics Board and to renew the registration biannually. An air taxi operation must not use large aircraft and must maintain liability insurance. A commuter air carrier is designated as any air taxi operator which performs at least five round trips per week between two or more points and publishes flight schedules which specify the times, days of the week and places between which such flights are performed.
In Forum Ins. Co. v. Seitz Aviation, Inc., 241 Kan. 334 (Kan. 1987), the court observed that “Air taxi operator means an air carrier coming within the classification of air taxi operators established by 14 C.F.R. § 298.3 (1986). 14 C.F.R. § 298.2(b) (1986). 14 C.F.R. § 298.3 sets forth the classification: (a) There is hereby established a classification of air carriers, designated as "air taxi operators," which directly engage in the air transportation of persons or property or mail or in any combination of such transportation and which: (1) Except as provided in 14 C.F.R. § 298.5, do not directly or indirectly utilize large aircraft in air transportation; (2) Except as provided in 14 C.F.R. § 298.5, do not hold a certificate of public convenience and necessity or economic authority issued by the Board other than that provided by this part; (3) Have registered with the Board in accordance with Subpart C of this part; (4) Have and maintain in effect liability insurance coverage in compliance with the requirements set forth in Subpart E of this part and have and maintain a current certificate of insurance evidencing such coverage on file with the Board.”