Appendix B - A Canadian Air Operator that Leases a Canadian Aircraft from Another Canadian Air Operator - Authorization Required

An LF-1 - Application to authorize a leasing operation involving a Canadian air operator lessee and a Canadian air operator lessor is completed by the registered owner of the aircraft and sent to the applicable regional Aircraft Registration and Leasing division (ARL).

ARL will ensure that the LF-1 has been duly completed and signed in ink.

CARs reference: 223.03(1)(e)

Payment of $520.00 will be received from the registered owner of the aircraft to the Minister.

CARs reference: Subpart 104 - Schedule III

ARL will distribute the LF-1, a copy of the lease, and any other documentation received to the following regional/TCC divisions:

  • Commercial and Business Aviation (for an air operator); or General Aviation (for a flight training unit operator)
  • Aircraft Maintenance and Manufacturing

OR: in the case of an Airline Inspection Division operator:

  • Airline Inspection Division
  • Aircraft Maintenance and Manufacturing

The above-noted divisions will review the LF-1, other relevant documentation, and conduct any inspection(s) necessary to determine compliance with Subpart 203 and Standard 223 as follows:

Provide evidence establishing that throughout the term of the lease, the aircraft:

  • will be in the legal custody and control of the lessee; and

CARs reference: 223.03(1)(a)

  • will not be made the subject of another lease during the term of the lease authorized by the Minister for that aircraft.

CARs reference: 223.03(1)(a)

Evidence establishing that the lessor and the lessee each hold a Canadian operator certificate.

CARs reference: 223.03(1)(b)

Evidence establishing that the lessee is responsible for the maintenance of the aircraft in accordance with the applicable standards of airworthiness and the maintenance control system referred to in section 406.35, 604.48 or 706.02, and the maintenance schedules approved by the Minister pursuant to subsection 605.86(2), and in accordance with any requirements set out in the authorization issued pursuant to subsection 203.03(2) of the Canadian Aviation Regulations.

CARs reference: 223.03(1)(c)

Evidence establishing that the aircraft crew members are in the employ of the lessee.

CARs reference: 223.03(1)(d)

The LF-1 will be routed back to ARL after all relevant divisions have reviewed and signed-off on it (with any additional conditions of issue, as required).

CARs reference: 203.03(2)

ARL will update CCARCS-E.

ARL will issue the LF-6 authorization to the registered owner of the aircraft.

CARs reference: 203.03(2)

ARL will place the LF-1 and LF-6 on the regional leasing and aircraft files, and distribute copies of all relevant documentation to AARRC.

The Canadian air operator that has been issued an LF-6 authorization must submit a signed copy of the lease within 7 days of receiving the LF-6 authorization.

CARs reference: 203.09

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