The above scenario can probably be structured to be legal. The lessee provides his own crew, insurance etc and has operational control of the aircraft,. But that is not how it happens. What happens is the"lessee" asks the owner if he can use his plane, crew, operations, the lot and pays the owner accordingly. Now that sounds a lot like charter to me.
Hawker
I know this as much as you do and have posted it to highlight how fine the difference between legal charter and illegal charter is.
What I do say is dont blame the operators or owners for exploiting grey areas as that happens in all walks of life. Blame the law for allowing grey areas to exist.
Make it in law that charter has to be for a minimum period of time to stop day trips made to look like legal charter etc.
Its unsafe and dangerous....
Chox
to clarify Its not unsafe or dangerous just illegal
Pace