Appendix E - A Foreign Air Operator that Leases a Canadian Aircraft from a Canadian Aircraft Manufacturer

An LF-4 - Application to authorize a leasing operation involving a foreign air operator lessee and a Canadian aircraft manufacturer is completed by the registered owner of the aircraft sent to the applicable regional Aircraft Registration and Leasing division (ARL).

ARL will ensure that the LF-4 has been duly completed and signed in ink.

CARs reference: 223.03(4)(i)

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 distribute the LF-4, 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-4, 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 leasing operation is for the purpose of providing a commercial aircraft registered in Canada to the lessee pending the type certification of that aircraft type and model designation number by the state of the lessee or for the purpose of product support; and

CARs reference: 223.03(4)(a)

  • evidence establishing that the aircraft type and model designation will be undergoing the process of airworthiness certification by the foreign state of the lessee.

CARs reference: 223.03(4)(b)

Evidence establishing that, throughout the term of the lease, the aircraft:

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

CARs reference: 223.03(4)(c)(i)

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

CARs reference: 223.03(4)(c)(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(4)(c)(iii)

Evidence establishing that the lessor is:

  • a Canadian manufacturer of aircraft; and

CARs reference: 223.03(4)(d)(i)

  • the holder of an aircraft type certificate in respect of the type and model designation of the leased aircraft.

CARs reference: 223.03(4)(d)(ii)

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(4)(e)(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(4)(e)(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(4)(e)(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(4)(e)(iv)

Evidence establishing that the aircraft:

  • has a valid certificate of airworthiness;

CARs reference: 223.03(4)(f)(i)

  • will be maintained 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(4)(f)(ii)

  • will be maintained in a configuration that complies with its Canadian type certificate or other equivalent document; and

CARs reference: 223.03(4)(f)(iii)

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

CARs reference: 223.03(4)(c)(iv)

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 and validated by Canada;

CARs reference: 223.03(4)(g)(i)

  • where the aircraft will be operated outside the state of the lessee and the foreign state is a contracting state, holds the license 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(4)(g)(ii)

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

CARs reference: 223.03(4)(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(4)(g)(iv)

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

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

CARs reference: 223.03(4)(h)

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

CARs reference: 203.04(1)

The LF-4 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-4 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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