Free use of an airplane is illegal compensation?? When I was a student, my flight school comp’d me several hours of plane and instruction. Was that illegal? By this logic, it would be illegal for a plane owner to lend the plane to a buddy. Heck, it would even be illegal for a pilot flying with a friend in a friend’s plane to take the controls for 30 minutes, log PIC, and not pay a pro rata share. This stuff is bureaucratic insanity and best handled by keeping one’s mouth shut.