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A rental plane at a local FBO had an annual inspection at 2345 hours on the Hobbs. The next 100 hour inspection wasn't completed until 2450.

If the current hobbs time shows 2547, would it be legal to take the airplane for a 2 hour flight lesson with an instructor?

Also, does the legality of this situation change depending on whether the 5 hours between 2445 and 2450 was with an instructor or not?

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According to FAR 91.409 b, the 100 hours can be overflown by ten hours in order to fly the plane to a place where the inspection can be performed, but this time must be included in the next 100 hour period.

If the five hours over the designated 100 hour time limit was for hire (ie not flying the airplane to somewhere the inspection could be performed) then they were technically illegal. And no, that wouldn't change the fact that you must count those hours in the current 100 hour cycle.

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CFR 91.409 (b) applies here:

Except as provided in paragraph (c) of this section, no person may operate an aircraft carrying any person (other than a crewmember) for hire, and no person may give flight instruction for hire in an aircraft which that person provides, unless within the preceding 100 hours of time in service the aircraft has received an annual or 100-hour inspection and been approved for return to service in accordance with part 43 of this chapter or has received an inspection for the issuance of an airworthiness certificate in accordance with part 21 of this chapter. The 100-hour limitation may be exceeded by not more than 10 hours while en route to reach a place where the inspection can be done. The excess time used to reach a place where the inspection can be done must be included in computing the next 100 hours of time in service.

Since the aircraft went 5 hours over on the last inspection cycle you must take this into account. Therefore the 100 hour should have been performed at 2545 hours. The airplane is overdue, and can only be flown enroute to a location for inspection.

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