The real answer is you need to know everything you will deal with on a regular basis. Weather, systems, emergency memory items, regs and so on. The items you do not deal with on a daily basis, you need to know where to find them. It is OK to say, 'I don't know' as long as that answer also includes 'But I know where to look.' That is why the ops manual, ops-specs and the AFM are required to be in the aircraft. But remember that if you don't have the everyday items down pat, it calls all your training into question.
In my experience, I've always had questions specifically about the op specs, ie when do you need an alternate? what are the alternate minimums? what are your take off mins? etc. etc.
AZ and Marq, those are things you deal with every day. Each FSDO has their own special hot buttons. In our area, since we are at sea level, they pay special attention to high - hot and performance. Also Hazmat as this area has a lot of that.
My point is the things you as a pilot deal with everyday, like weather, alternates, aircraft emergency memory items, systems and so on, you NEED to know cold. The stuff that you don't use everyday, like Hazmat, Class G airspace, DUI, Lower than standard takeoff mins and the like, you are not expected to have down cold. But you do need to know where to find them. Regs, Operations Manual, Operations Specifications or what ever. You are not expected to know it all. BUT don't ever BS the inspector, because they do know. Or do an 'information dump'. Just be right upfront about it and say 'I don't know' But also be ready to say, 'I will look it up, it should be in (what ever, Regulations Part XX, Operations Specifications, Operations Manual, Section XX. Whatever area has it.
For Operations Specifications remember, Part A is general and exceptions, Part B is Enroute, Part C is Airport and Part D is Maintenance.
My 135 oral was actually with the certificate holders inspector from the FAA, and I must say that it was the most relaxed ever.
Ofcourse you just need to know all the stuff pertaining to the airplane cold, as well as the regulations that you use during actual flight.
As far as Hazmat, my reasoning was that I didn't need to know this cold, as I had time to accept or decline this flight so I could do research. i just stepped out the office and talked to our 135 hazmat instructor about the example the wanted me to solve, both of us went through it and i needed more info.... walked back in to the faa office and they just LOVED that. that was exactly what they wanted to see, use everything at your disposal, even (or especially) other people.
Good thing they did agree with me on that one though, although it all is pretty simple to look-up in the big book. just do it all once and it'll stick enough to look it up in a minute.
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