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Commercial Question

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You of course can rent a plane and do instruction with students if the flight school is agreeable to this. They usually will not be and any damage or accident while you are trying to do this will make you liable. Flight instruction is exempt from 119/135 as is sightseeing with in 25 miles, banner tow, etc. There are those who try to transport persons from A to B and call it instruction, but they run a serious risk here. One you should have documentation of the instruction you provide - some kind of course syllabus. IF it is obviously for the purposes for furtherence of a business (ie you are transporting a person who is conducting business) you are conducting a 135 operation. If you are holding out to provide this transportation you are a 135 operation. If in an accident the insurance company determines that this flight was conducted illegally and against the terms of the policy you and the aircraft just became uninsured and you will be sued. The only way that this scenario becomes ligit is if the party in question leases the aircraft themselves (and accepts all of the responsiblities that go along with that) and then hires you for your pilot services. This would be just like a corporate flight operation. Even if this is done properly with all of the paper work in place it is highly unlikely that all of the parties involved will accept the liability involved for a short term operation. (ie the renting party will not likely be able to get the proper insurance, the flight school will not want to release control of the aircraft, etc.) If this is done over and over to accomodate different people off the street, this will likely be viewed as holding out and you would get the attention of the local FSDO.
 

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