Even if a CPL candidate does not intend to fly for hire, the FAA and the examiner expect them to understand the privileges and limitations associated with the certificate. In the case of CPL, this is a complicated subject, and is not spelled out clearly in any one place. This note explains all the concepts and gives several references to read up on. The most important privilege of a Commercial Pilot is that they may fly for hire. But there are many nuances and limitations. Most students are not aware of the [[Distinction Between Pilot Privileges and Operational Rules]], which is very important to understand first. ### Private Pilots A Private Pilot generally CANNOT fly for compensation or hire ([[FAR 61.113 Private Pilot Privileges and Limitations|§ 61.113]]). But that FAR also lists seven exceptions! Some of the most interesting ones are: 1. They can be paid by their business, to fly, without passengers or property, as long as it is incidental to the business ([[FAR 61.113 Private Pilot Privileges and Limitations|§ 61.113]](b)) 2. They can share expenses (only fuel, oil, rental costs) with passengers, as long as there is [[Common Purpose]], and as long as they do not [[Holding Out|Hold Out]] ([[FAR 61.113 Private Pilot Privileges and Limitations|§ 61.113]](c)) 3. Can fly and carry passengers for a charitable event described in [[FAR 91.146 Passenger-carrying flights for the benefit of a charitable, nonprofit, or community event|§ 91.146]] 4. Can be reimbursed for search and rescue expenses ([[FAR 61.113 Private Pilot Privileges and Limitations|§ 61.113]](e)) ### Commercial Pilots By contrast, a Commercial Pilot CAN fly for compensation or hire ([[FAR 61.133 Commercial Pilot Privileges and Limitations|§ 61.133]]). But there are exceptions and limitations. Most importantly, understand that every flight is conducted under a specific set of Operational Rules ([[Part 91]], [[Part 121]], [[Part 135]], etc.), and each of these rules place additional restrictions on the flight and the pilot. See [[Distinction Between Pilot Privileges and Operational Rules]]. Some important restrictions to understand are: 1. [[Common Carriage]] is not allowed under [[Part 91]].  Common Carriage must be conducted under [[Part 135]] or [[Part 121]], and requires an Air Carrier / Operating Certificate 2. Additionally, Wet Leases (providing both the airplane and the crew, more detail below) are not allowed.  These are considered charter air services and require an air carrier / operating certificate (per AC 91-37B, 3.3 & 8.3).  There are additional requirements under 119.53, such as providing a copy of the lease to the FAA. 3. Being hired to fly someone else's airplane is legal (no reference found; seems to simply not be disallowed). 1. But be careful if the person that hired you is in fact a carrier.  Private Carriage is allowed.  But the entity you're flying for cannot be implicitly an air carrier.  This implies having a small number of long-term contracts. 4. A Commercial Pilot without an instrument rating is prohibited from carrying passengers for hire more than 50NM or at night ([[FAR 61.133 Commercial Pilot Privileges and Limitations|§ 61.133]](b)(1)) Thankfully, to cut through the confusion, [[FAR 119.1|§ 119.1]](e) lists specific kinds of commercial work which are allowed under [[Part 91]]. These include flight instruction, Nonstop Commercial Air Tours (see § 91.147), ferry flights, and multiple types of aerial work. # Concepts, Definitions, and Resources ## Operational Rules Every flight takes place under a specific set of operational rules. By default, [[Part 91]] defines these rules. But FAR Part 119 lays out the cases where additional or alternative rules apply, and where an Air Carrier Certificate or Operating Cert is required. According to [[FAR 119.1|§ 119.1]](a), part 119 applies when: - Common carriage is involved, OR - Private carriage is involved, OR - The plane has 20 or more passenger seats, or a payload capacity of 6000lbs or greater [[FAR 119.1|§ 119.1]](e) lists cases where Part 119 does not apply, such as - Flight instruction - Nonstop Commercial Air Tours (require Letter of Authorization; see § 91.147) - Ferry flights - Aerial work operations - Parachute operations ## Common Purpose See [[Common Purpose]] ## Holding Out See [[Holding Out]] ## Common Carriage vs. Private Carriage #### Common Carriage - [[Common Carriage]] is a common law term, which probably predates aviation. - For aviation purposes, the term is defined in [[AC 120-12]] - Common carriage operations must be conducted under [[Part 121]] or [[Part 135]]. #### Private Carriage - Private carriage is also defined in [[AC 120-12]] - Private carriage is characterized by having one or a small number of contracts, generally long-term.  According to examples given in the AC, 3 is OK, but 18 to 24 is too many. One article which touches on these topics is [6 things you need to know about common carriage](https://www.boldmethod.com/blog/lists/2021/09/6-things-you-need-to-know-about-common-carriage/). ## Sharing Operating Expenses Private pilots learn that they can share direct expenses (fuel, oil, etc.) with their passengers ([[FAR 61.113 Private Pilot Privileges and Limitations|§ 61.113]](c)). But [[AC 61-142]] is critical for understanding expense-sharing. - It defines [[Common Purpose]], and makes it a requirement for expense-sharing - It defines a "Commercial Operator" as one working for compensation or hire but not as an air carrier - Although Commercial pilots may carry persons/property for hire, most commercial operations require the operator to hold a part 119 certificate (either an Air Carrier Certificate or an Operating Certificate).  Specifically Commercial Pilots may not engage in common carriage. - It defines "Compensation" in Section 8.1. "...but for receipt of the compensation, the pilot would not have taken that flight." - Expense sharing is in fact considered compensation, but it's an allowable subcategory - Accruing flight time is also considered compensation - When inviting people to share expenses on a flight, the invitation can only be to a restricted group of people with whom the pilot has a pre-existing relationship, or are members of a small, closed community, not a general invitation. - See also [[Misuse of Expense Sharing]] ## Wet Lease vs. Dry Lease - [[AC 91-37]] defines these terms - In a "wet lease" the lessor provides the aircraft and at least one crew member, and is the operator. - In a "dry lease", the lessor provides only the aircraft, and the lessee is the operator