Hung Start
Just the cleanup guy
- Joined
- Sep 12, 2004
- Posts
- 701
Well, that case is a bit different than the example of owning the plane and flying potential customers to a site to let them see what you may have to sell at that site.
The Lear guy was expressly in the business of charter. He had no need to go where he took those "customers" He had normally charged them in the past. He did not charge them for that "particular" flight only for the purpose of evading the 135 requirements.
It is kind of like the tax law. Tax avoidence is legal. Tax evasion is not.
He could have gotten out of it if he had done some homework. The "customers" should have had a written lease for the plane. Then, he could have provided pilot services under another contract. He still would have raised eyebrows at the Feds, but it is legal and he would have gotten paid.
As it was, he lost revenue, and his ability to be in business, plus all the expense of legal fees, etc.
It was legal then, not sure if the loophole has closed, i recall there was a movement afoot at the FAA to stop that stuff.
Hope this helps.
Hung
The Lear guy was expressly in the business of charter. He had no need to go where he took those "customers" He had normally charged them in the past. He did not charge them for that "particular" flight only for the purpose of evading the 135 requirements.
It is kind of like the tax law. Tax avoidence is legal. Tax evasion is not.
He could have gotten out of it if he had done some homework. The "customers" should have had a written lease for the plane. Then, he could have provided pilot services under another contract. He still would have raised eyebrows at the Feds, but it is legal and he would have gotten paid.
As it was, he lost revenue, and his ability to be in business, plus all the expense of legal fees, etc.
It was legal then, not sure if the loophole has closed, i recall there was a movement afoot at the FAA to stop that stuff.
Hope this helps.
Hung