"James M. Knox" wrote in message
...
Pat Barry wrote in :

Renting out an aircraft is a commercial operation in itself,

It's renting of a piece of property. It is a commercial operation and
will require the renter to hold a state sales certificate (although not
have to pay state tax in most states).

aircraft cannot be used in any operation for compensation or hire
beyond the currency of the 100 hours inspection.

But it can be flown by the renter, or his pilot (including a flight
instructor *the renter provides*, as long as it is in annual and
otherwise airworthy. No 100 hour inspection is required.

Nope, go read your own FAA opinion again.

I can assure you that when a plane is out of a hundred hour inspection
that it cannot be rented out.

I hate to quote FSDO web sites, because they are frequently in error.
But from, for instance, the Albany FSDO website:

"Aircraft rental by itself isn't "for hire," and applicants bring the
airplane to me for the test. However, the aircraft may have a recurring
AD that requires compliance every 100 hours, so although the 100-hour
inspection may be unnecessary, AD compliance may be."

More officially, here's an FAA Chief Counsel letter interp:

May 3, 1984
Mr. Perry Rackers
Jefferson City Flying Service

Dear Mr. Rackers

This is in reply to your request of May 1, 1984, that we render
an opinion regarding the applicability of the 100-hour
inspections requirement of Section 91.169(b) of the Federal
Aviation Regulations to rental aircraft. Section 91.169(b) of
the Federal Aviation Regulations provides that, except as noted
in Section 91.169(c), a person may not operate an aircraft
carrying any person, other than a crewmember, for hire, and may
not give flight instruction for hire in an aircraft which that
person provides unless, within the previous 100 hours of time
in service, the aircraft has received either an annual or a
100-hour inspection.

If a person merely leases or rents an aircraft to another
person and does not provide the pilot, that aircraft is not
required by Section 91.169(b) of the Federal Aviation Regulations
to have a 100-hour inspection. As noted above, the 100-hour
inspection is required only when the aircraft is carrying a
person for hire, or when a person is providing flight instruction
for hire, in their own aircraft.

If there are any questions, please advise us.

Sincerely,
/s/
Joseph T. Brennan
Associate Regional Counsel

I'm afraid you are mistaken.

Wouldn't be the first time... but not in this case.

jmk