So here is the situation, me and my coworkers are all CFI's, but work for a corporate flight department flying passengers. One of the local businessmen in the area just bought an airplane he is going to learn to train in. He wants us to do his primary training with him. Normally, this is no issue, he contacted us, we are not holding out to the public so if compensation is provided there is no legal issue. However, because making extra money on the side may create a conflict of interest with our primary job of flying for our employer. (who doesnt want to make extra cash, right?) My boss wants to find out if we can schedule flights and charge this guy through the company we work for. Basically if we charged him 25$ an hour, we would make an extra 25$ an hour. Our employer WOULD NOT BE MAKING A PROFIT AT ALL. That way if we have a trip for the company pop up, it takes priority no questions asked and no conflict of interest.
I personally dont feel any of us would neglect our primary jobs for an hour or two of Dual a week, but its an issue I am tasked with resolving. Unfortunately once a transaction between the new aircraft owner and our employer came into play, I am lost in terms of the laws involved. My gut feeling is, since instruction is being given, and a business is charging someone for it we need a operator certificate or flight school equivalent of one. Does this limit us to just cash on the side via "private carriage"? Any links or specific regs I can refer to would help. I need to show concrete evidence that what I found is actual law/regulation. Thanks!