Appendix C - A Foreign Air Operator that Leases a Canadian Aircraft from a Canadian Air Operator that is Operating under Part IV, VI or VII

An LF-2 - Application to authorize a leasing operation involving a Canadian air operator lessor and a foreign air operator lessee 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-2 has been duly completed and signed in ink.

CARs reference: 223.03(2)(h)

Payment of $1200.00 will be received from the registered owner of the aircraft to the Minister.

CARs reference: Subpart 104 - Schedule III

ARL will check the company leasing file to ensure compliance with the requirement that no Canadian air operator shall lease to a foreign air operator a number of aircraft that exceeds 25 per cent of the total number of Canadian aircraft registered to that Canadian air operator, rounded to the next highest whole number.

CARs reference: 203.07(2)

ARL will distribute the LF-2, a copy of the lease and other documentation received to the following regional/TCC divisions:

  • Aircraft Maintenance and Manufacturing
  • General Aviation
  • Commercial and Business Aviation

The above-noted divisions will review the LF-2, other relevant documentation, and conduct any inspection(s) necessary to determine compliance with Subpart 203 and Standard 223 as follows:

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

  • will be registered to the lessor as a commercial aircraft;

CARs reference: 223.03(2)(a)(i)

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

CARs reference: 223.03(2)(a)(ii)

  • 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(2)(a)(iii)

  • Evidence establishing that the Canadian lessor holds a Canadian operator certificate issued in respect of the aircraft type being leased.

CARs reference: 223.03(2)(b)

Provide evidence establishing that the lessee:

  • is a citizen or subject of a foreign state or an entity incorporated or formed by or under the laws of a foreign contracting state;

CARs reference: 223.03(2)(c)(i)

  • holds an air operator certificate or equivalent document, issued by the foreign contracting state in respect of the aircraft type being leased;

CARs reference: 223.03(2)(c)(ii)

  • will operate the aircraft on a unit toll service, a charter service, or other commercial air service approved by Canada; and

CARs reference: 223.03(2)(c)(iii)

  • has demonstrated the ability and qualification to maintain 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).

CARs reference: 223.03(2)(c)(iv)

  • Evidence establishing that the lessee’s main operations base, during the lease, will be located in the state of the lessee

CARs reference: 223.03(2)(c)(e)

Evidence establishing that the aircraft:

  • has a valid certificate of airworthiness;

CARs reference: 223.03(2)(c)(f)(i)

  • will not undergo modification unless it is authorized by the Minister;

CARs reference: 223.03(2)(c)(f)(ii)

  • will continue to meet 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) are, during the term of the lease, equivalent for the lessor and the lessee, prescribed in the Canadian Aviation Regulations;

CARs reference: 223.03(2)(c)(f)(iii)

  • will be maintained during the term of the lease, in a configuration that complies with its type certificate or such other equivalent document; and

CARs reference: 223.03(2)(c)(f)(iv)

  • will be maintained in accordance with an inspection program approved by the Minister and any additional requirements set out in the authorization issued pursuant to subsection 203.02(2) of the Canadian Aviation Regulations.

CARs reference: 223.03(2)(c)(f)(v)

Evidence establishing that every crew member assigned to the aircraft by the lessee:

  • where the aircraft will be operated solely within the state of the lessee, holds the licence appropriate to the crew member’s duties, issued by Canada or the state of the lessee;

CARs reference: 223.03(2)(c)(g)(i)

  • where the aircraft will be operated outside the state of the lessee, holds the licence appropriate to the crew member’s duties issued by Canada or issued by the state of the lessee and validated by Canada;

CARs reference: 223.03(2)(c)(g)(ii)

  • where the aircraft will be operated outside the state of the lessee and that foreign state is not a contracting state, holds the licence appropriate to the crew member’s duties issued by Canada; and

CARs reference: 223.03(2)(c)(g)(iii)

  • in the case of a large aircraft, every crew member other than a flight crew member has received training equivalent to that described in Chapter 12, Part I, of Annex 6 to the Convention on International Civil Aviation.

CARs reference: 223.03(2)(c)(g)(iv)

Note: “large” aircraft - means an aeroplane with a maximum permissible take-off weight in excess of 5,700 kg (12,566 pounds).

Written consent of the foreign civil aviation authority of the state of the lessee has been obtained.

CARs reference: 203.04(1)

The LF-2 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-2 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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