ASCI404 Module 6 Exam 2 ALL Correct answers Graded A+

Question 1: You own an aircraft and hold an FAA commercial pilot certificate but not an air carrier operating certificate. At a rural U.S. airport not served by any air carriers, a person approaches you saying he needs to get to Big City as quickly as possible for an urgent short-notice business meeting. The person offers you $1,000 for the same-day round trip, and you could really use the money. You regretfully decline, explaining that you don't have an FAA air carrier operating certificate. Undeterred, the prospective client, thinking like a businessman, says: "Well, O.K., then how about if I lease the airplane from you, then hire you to fly it for me?" What will you do and why? Explain your reasoning clearly. Answer: This will be considered a wet lease if the pilot leases the aircraft, with flight crew (the pilot) to another user (the businessman). The FAA views if the crew and aircraft were provided by the same source then it is not a lease but rather a charter. Because of the FAA's presumption of a wet lease, I (the pilot) would still politely DECLINE the offer for hire. There are two types of leases, a lease forward and a leaseback. A lease is an agreed contract which permits someone else to use the owner's aircraft. In a lease forward, the seller would sell the aircraft to the buyer (lessor), who would then lease the aircraft to the lessee (an individual or flying club). A leaseback is when a seller sells the aircraft to a buyer; the buyer would then lease the aircraft back to the original seller. In a leaseback, the seller now becomes the lessee and the buyer the lessor. In our scenario, the businessman is attempting to lease the aircraft and pilot (the crew) which is not acceptable to the FAA. The businessman is attempting a wet lease. Under 14 CFR Part 91, a charter cannot operate but would fall under 14 CFR Part 121 or 135 (depending on aircraft size). ALL Correct Answers available to Help you on your exams!!!!