First, it took two seconds of googling to find a recent Letter of Interpretation from the FAA Office of the Chief Counsel regarding flight time as "compensation."
http://www.faa.gov/about/office_org/headquarters_offices/agc/pol_adjudication/agc200/interpretations/data/interps/2013/Howell-PatriotsJetTeam - (2013) Legal Interpretation.pdf
Here is the relevant part:
The FAA has a long-standing policy for defining compensation in very broad terms. See
Harrington Interpretation; see also Legal Interpretation to Joseph A. Kirwan (May 27,2005)
(defining "compensation" as "the receipt of anything of value"). Any reimbursement of
expenses (fuel, oil, transportation, lodging, meals, etc., if conditioned on the pilot operating
the aircraft) is compensation. Id. Additionally, the logging of flight time is compensation if
the pilot does not have to pay the costs of operating the aircraft. Id. The Harrington
Interpretation provides a detailed analysis of whether receipt of lodging, transportation, and
meals is compensation, which is the touchstone of your inquiry...
The LOI goes on to talking about how the Patriots demonstration team is receiving compensation from the CAF in the form of free food, lodging or amenities even though they're performing at an airshow FOR FREE. It sucks and I think many of the LOIs over the last 20 years are destroying the spirit of general aviation, but this is the world we live in and have to deal with as pilots.
@Banner Express the FAA can and has read these forums.
@Champcar censored the name of your business so he could ask about the legality of the practice in a
hypothetical way without damaging you or your business. I urge you to use the "edit" feature and remove the name of your business from all your posts in this thread.
He was not asked to do anything - an offer of a free flight was made to anyone that wanted it.
It was supposed to be a nice perk for any of the _________Air Center customers.
No "SCUMBAG" intentions of trying to get out of paying someone for the flight.
Maybe you negative responders should look at it from a different perspective. NOBODY was trying to cheat anyone out of anything!
And no there is no additional cost to the customer receiving maintenance - its a way to try to get business for the maintenance company so that NINE people can collect a check every Friday and take care of their families.
If any of the pilots flying those flights put it in their logbook, they are being "compensated" by you in the form of free flight time. If they didn't get to log the flight time, would they still do it? It sounds like the 78 year old guy might, so that might legally be fair game.
But then you REALLY messed up by saying "It's a nice way to try to get business for the maintenance company." I'm not commercially rated yet so the semantics of a lot of this is above my pay grade, but the way I understand it is that Part 91 is fair game so long as you are conducting flights under "Private Carriage." But once you extend your services ("Holding Out") to any Joe schmo in the general public it becomes "Common Carriage" and a Part 135 operating certificate is required. If you're helping the maintenance company attract new customers you are now a Part 135 commercial operation.
Could you only give rides to people you already know (aka "friends"), get the 78 year old guy his Commercial ticket and pay him $1 per flight? Probably still illegal somehow (so don't actually do this), but it would be a huge step in the right direction from what you're currently doing: Which is using Private Pilots as part 91 commercial pilots in an operation that should be part 135!
It sounds like you have good intentions and got offended by the scumbag comment (we don't all think that!). GA needs flight school owners that still care about promoting aviation and helping their communities (and keeping flying FUN!), and it doesn't do us all any good if the FAA comes and shuts you down. So I implore you to better school yourself on the regs and change what you're doing, even if it means the pilots in the local community have to lose out on this service. Good luck.
