A FLT INSTRUCTOR PERMITTED TWO STUDENTS TO OCCUPY THE FRONT SEATS OF THE ACFT WHILE HE SAT IN THE BACK. THE AUX TANKS WERE ALLOWED TO RUN DRY; LEADING TO TEMPORARY PWR LOSS.

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WE WERE CRUISING AT 11500 FT WHEN WE DECIDED TO RUN THE AUX FUEL TANKS DRY BEFORE SWITCHING TO THE MAINS. WHEN THE L ENG STARTED TO SPUTTER; WE QUICKLY SWITCHED BOTH TO MAINS. HOWEVER; IT TOOK ABOUT 30-40 SECONDS TO KICK IN. DURING THIS TIME; THE L WAS WINDMILLING (IT NEVER STOPPED) AND THE R WAS FINE. WE REALIZED THAT WE FORGOT TO APPLY FULL MIXTURE. OTHER THAN THAT; THERE WERE NO PROBS. SUPPLEMENTAL INFO FROM ACN 608035: THE TIME SPENT WITHOUT FULL PWR WAS ABOUT 30 SECONDS. WE LOST AROUND 200 FT OF ALT DUE TO THIS EVENT. I FEEL THAT THE LOSS OF ALT WAS MORE DUE TO US NOT PAYING ATTN TO OUR ATTITUDE RATHER THAN THE LOSS OF PWR. UPON RETURNING HOME; I REALIZED WHAT I HAD DONE WAS A VIOLATION OF THE FARS. I ALLOWED 2 STUDENTS TO FLY THE MULTI ENG ACFT WHILE I WAS IN THE BACK SEAT. DURING ANY PORTION OF THE FLT THAT INVOLVED TKOF AND LNDGS; I WAS IN THE FRONT SEAT. I HAD TALKED TO PLTS PREVIOUSLY AND WAS IN THE UNDERSTANDING THAT THIS WAS LEGAL. I HAD EVEN SEEN OTHER INSTRUCTORS DO THIS AT MY PLACE OF EMPLOYMENT. I WAS INFORMED THAT I WAS GOING TO BE FIRED FROM MY POS DUE TO THE EVENTS THAT TOOK PLACE DURING THE FLT.