FAA Military Competency Practice Exam

What defines a flight conducted for compensation or hire?

1. A private flight with no passengers

2. A flight carrying passengers only

3. A flight involving cargo transfer

4. A flight where the operator is compensated for services

The correct answer is: A flight where the operator is compensated for services

The definition of a flight conducted for compensation or hire is centered around the concept of financial transaction in exchange for the services rendered by the operator or pilot. This typically means that the flight is part of a commercial operation where the operator receives payment for transporting passengers or cargo. In this context, when an operator is compensated for any part of the operation, whether it's providing transport for individuals or freight, it meets the criteria of being for compensation or hire. Various scenarios illustrate this definition. If an operator charges a fee for flying passengers or transporting cargo, it clearly indicates that the flight is intended for gain. Conversely, private flights, where no compensation is exchanged, do not fall under this definition because the pilot or operator is not receiving any financial benefit from those operations. Therefore, to categorize a flight as one conducted for compensation or hire, the element of receiving payment or financial gain for the services performed is essential.