Appendix D - A Canadian Air Operator that is Operating Under Part IV, VI or VII and that Leases an Aircraft Registered in a Foreign State

An LF-3 - Application to authorize a leasing operation involving a Canadian air operator lessee operating a foreign registered aircraft is completed by the Canadian air operator lessee and sent to the applicable regional Aircraft Registration and Leasing division (ARL).

ARL will ensure that the LF-3 has been duly completed and signed in ink.

CARs reference: 223.03(3)(f)

Payment of $995.00 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, pursuant to section 203.03, operate a number of leased aircraft registered in a foreign state that exceeds 25 percent of the total number of aircraft registered to that Canadian air operator, rounded to the next highest whole number.

CARs reference: 203.07(1)

ARL will check the company leasing file to ensure compliance with the requirement that no authorization shall be issued to a Canadian air operator, pursuant to subsection 203.03(2) with respect to the operation of an aircraft registered in a foreign state that would result in:

  • the Canadian air operator being issued with one or more such authorizations for 24 months or more during any period of 30 consecutive months; or

CARs reference: 203.08(a)

  • the aircraft being the subject of one or more such authorizations issued to a Canadian air operator for 24 months during any period of 30 consecutive months.

CARs reference: 203.08(b)

ARL will distribute the LF-3, a copy of the lease and other documentation received to the following regional/TCC divisions:

  • Aircraft Certification
  • Aircraft Maintenance and Manufacturing
  • Commercial and Business Aviation (for an Air Operator) or General Aviation (for a flight training unit)

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

  • Airline Inspection Division
  • Aircraft Certification
  • Aircraft Maintenance and Manufacturing

The above-noted divisions will review the LF-3, other relevant documentation, and conduct any inspection(s) necessary to determine compliance with Subpart 203 and Standard 223 as follows:

  • Provide evidence establishing that the aircraft:
    • is of a type and model designation to be eligible for a Canadian certificate of airworthiness and complies with all environmental and operational requirements;

CARs reference: 223.03(3)(a)(i)

Other references: ACPL 50, ACSI 23, AN B004

  • is registered in a foreign contracting state;

CARs reference: 223.03(3)(a)(ii)

  • has a valid certificate of airworthiness issued in respect of the aircraft by the state of registration; and

CARs reference: 223.03(3)(a)(iii)

  • 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(3)(a)(iv)

Evidence establishing that the lessee holds an operator certificate for the specific aircraft type to be leased or has applied to the Minister in accordance with the Canadian Aviation Regulations to have the specific aircraft type added to their operator certificate.

CARs reference: 223.03(3)(b)

The lessee provides the Minister with evidence establishing that:

  • the aircraft complies with the type certificate issued in respect of the aircraft or other equivalent document and meets the applicable standards of airworthiness and 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(3)(c)(i)

  • the lease will not affect the registration of the aircraft or the certificate of airworthiness issued in respect of the aircraft by the state of registration; and

CARs reference: 223.03(3)(c)(ii)

  • in the case of an aircraft registered in the United States, the certificated weight of which is more than 12,500 pounds, the registered owner is a United States entity other than described in the United States Code of Federal Regulations 47.9.

CARs reference: 223.03(3)(c)(iii)

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

CARs reference: 223.03(3)(d)

Evidence establishing that, during the term of the lease authorized by the Minister, the aircraft:

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

CARs reference: 223.03(3)(e)(i)

  • will be maintained in accordance with the applicable standards of airworthiness and 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

CARs reference: 223.03(3)(e)(ii)

  • will be maintained in accordance with an inspection program approved by the Minister and any requirements set out in the authorization issued pursuant to subsection 203.03(2) of the Canadian Aviation Regulations.

CARs reference: 223.03(3)(e)(iii)

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

The LF-3 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 Canadian air operator lessee.

CARs reference: 203.03(2)

ARL will place the LF-3 and LF-6 on the regional leasing file, 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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