Chapter 2 - A Canadian Air Operator that Leases a Canadian Aircraft from Another Canadian Air Operator - Advisory - No Authorization Required

2.1  Regulatory Reference

The regulatory reference for a Canadian air operator that leases a Canadian aircraft from another Canadian air operator is paragraph 203.02(1)(a).

2.2  Leasing Advisory - No Authorization Required

Leasing a Canadian aircraft from another Canadian air operator does not require an authorization when the regulatory requirements are met.

CARs reference: 203.03(1)

Refer to the checklist in Appendix A of this manual.

2.3  Registered Owner to Advise Minister

The registered owner is required to inform the Minister in writing that the lease has taken place no later than seven days after the term of the lease commences. An air operator may submit the information required by the Canadian Aviation Regulations in a written format other than the LF-5, e.g. a letter, as long as all the pertinent information is included.

2.4  Receipt of Advisory Information

The regional Aircraft Registration and Leasing division is the appropriate recipient of the LF-5.

2.5  Leasing Advisory Distribution/Review

The regional Aircraft Registration and Leasing division will distribute a copy of the LF-5 to the regional Aircraft Maintenance and Manufacturing division for their review of maintenance equivalency requirements. Regional Aircraft Maintenance and Manufacturing will notify Aircraft Registration and Leasing after their review whether maintenance equivalency requirements have been met so that CCARCS-E can be updated.

Copies for information purposes will also be sent to the following regional/TCC divisions:

  1. Commercial & Business Aviation (for an air operator);
  2. General Aviation (for a flight training unit); and
  3. Airline Inspection Division (if an Airline Inspection Division operator is involved).

A copy of the LF-5 shall be placed on the regional leasing and aircraft files. A copy of the LF-5 shall be sent to the Chief, Aircraft Registration and Leasing (AARRC).

2.6  Maintenance Equivalency Requirements

There is a regulatory requirement that the maintenance control system and the maintenance schedules must be equivalent for the lessor and the lessee in order for an LF-5 to be valid. If the regional Aircraft Maintenance and Manufacturing division has any concerns regarding the maintenance arrangements resulting from an LF-5, further investigation may be warranted. Consultation with the regional Aviation Enforcement division is also an option.

CARs reference: 203.03(1)(c)

2.7  Fee

There is no fee associated with a leasing advisory, in accordance with the requirements of Subpart 104.

2.8  Maximum Number of Leased Aircraft/Limitations

There are no limitations on the number of aircraft that Canadian air operators may lease to or from other Canadian air operators, in this type of leasing operation.

2.9  Time/Limitations

There are no time limitations on the period of time Canadian air operators may lease aircraft to or from other Canadian air operators, in this type of leasing operation. There is no minimum time or frequency for an advisory, as long as an advisory is submitted for each leasing transaction.

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