Just got it from an expert at TC Vancouver.
Rental of an aircraft to licensed pilots is considered to be a commercial air service, but...
You don't need an OC or any other paperwork
True.
The aircraft should be commercially registered
Obviously insured for rental use
" Should be" means it is not mandatory.
It must be maintained to commercial standards by an AMO,
It makes perfect sense to require the airplane be maintained to commercial standards, even though it is privately registered........but why an AMO, what is wrong with an AME?
which suggests that it would be a good idea to have a small maintenance manual, although apparently not required.
As long as the maintenance is done to the manufacturers specs and the AME follows all the legal requirements why would you open yourself up to the minefield of paper work that would ensue with TC?
It cannot be used for private pilot license training
DUH.....
It can be used for advanced training of already licensed pilots.
Of course it can.
The rental company cannot provide the instructor.
Where does it say an individual must be a company?
You can use the aircraft for any ride except a private pilot license ride.
Good.
If the renter is using an independent instructor for some training, that instructor should be cleared by the insurance company.
Of course to do anything else would be stupid.
There will need to be checkouts for the insurance company. Its a grey area as to whether the rental company can provide that checkout guy, but the word is that you very probably can and can charge for the checkout on the same invoice as the first rental. Otherwise, you can have an independent pilot or pilots, probably instructor rated, that are approved by the insurance company. Any pilot that charges for checkout time must hold a minimum of a commercial pilot's license.
There is no requirement to be a licensed instructor to do insurance company check rides.
It has been suggested that its probably a good idea to write TC a letter outlining that you are proposing to set up Budget Rent A Plane and clarify this issue about checkouts. That way, if some higher up ever goes a bit loopy over it, you have your approval on paper.
That would be the last thing on earth I would do...I've already cleared up these issues with the top person in Transport Canada ( Merlin Preuss's boss. ) and I have tons of paper work and independent witnesses ( note more than one ) to confirm that the Director General Transport Canada could not find any legal way to stop me from doing select flight training without a OC.
If you need any help with the letter, PM me. I do stuff like that for a living.
You are a braver man than me, having spent some years writing letters to those pricks I would need a frontal lobotomy to ever want to do that again.