Originally Posted by
Kasdanh
Sorry if this is naive of me but I just have my PPL working on MEL and am wondering why it would be illegal? Is it because it is a charter and you have to be certified by the FAA to run a charter service? I would think the CFI could fly for hire since he obviously has his commercial ticket.
This is a VERY complicated topic of discussion, with many gray areas. Commercial pilots are often confused about this, but here's a very simplified summary.
A commercial pilot acting alone can be hired to fly an airplane owned (or possibly not owned but provided) by a passenger.
In order to provide charter services to the public (where you provide the plane and pilot), you need a 135 or 121 operating certificate.
If the pilot rents the airplane, that is charter. If the pax rents the airplane that may or may not be charter...it's often a gray area, and it is not good if the pilot has an ongoing relationship with the rental agency.
An CFI can only fly as an instructor if there is legit instruction occurring. You cannot operate an illegal charter op by pretending to give instruction to your passenger...the FAA is smarter than that and will catch on. However...if legit instruction is occurring, you can perform almost any flying reasonably associated with that (XC, weekend getaway, pax in the back,etc).
There are some other issues, such as "holding out", which will no doubt confuse the heck out of you when you go for your commercial.