Goldwater Institute joins suit against FAA over rideshare company for pilots

PHOENIX — Arizona-based Goldwater Institute has added its name to a lawsuit against the federal government.

The institute announced Tuesday its attorneys are suing the Federal Aviation Administration over the shutdown of a ridesharing company called Flytenow Inc., which operates similarly to other rideshare companies such as Uber or Lyft, but for private pilots.

Pilots could post on the Flytenow website a trip they are planning to take, and others could sign up to get a ride while helping cover the expense of the trip, according to Attorney Jon Riches with the Goldwater Institute.

“Private pilots have been able to fly where they choose, and if they want to have passengers join them, and then those passengers would share the operating expenses of the flight — stuff like gas and other expenses,” Riches said. “That’s always been permissible.”

However, the FAA took issue with Flytenow and shut down the service, primarily because the department said private pilots were advertising flights and receiving compensation, which would therefore require those pilots to meet the standards of commercial pilots.

Riches said the decision to shut down the company was unfair, and that pilots have been posting flights that are open for passengers to join for decades.

“Up until this case, (pilots) were posting them on airport bulletin boards or using the phone or email to contact with passengers,” he said.

Now, Riches said he believes the FAA has unconstitutionally singled out the method through which Flytenow operates, and that this case is an example of government interfering with private business.

“The FAA said. ‘Well, even though this sort of arraignment has always been permissible, because you’re using the Internet, because you’re using a private website, that counts as commercial advertising and you can’t do it,” he said.

The FAA would not comment on pending litigation, but did provide KTAR with letters that detailed the administration’s issues with Flytenow.

Riches said the federal government’s response is due next month and the case could end up being heard in the U.S. Court of Appeals. The case could have a broader affect on the rideshare industry in general, depending on how the court rules on regulating rideshares, Riches said.

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