Chapter 3 - A Canadian Air Operator that Leases a Canadian Aircraft from Another Canadian Air Operator - Authorization Required

3.1  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).

3.2  Leasing Authorization Required

If a Canadian air operator does not meet the requirements for an LF-5 advisory, application may be made for a leasing authorization.

3.3  Applicant Submissions

The applicant, i.e. the Canadian registered owner, shall submit a completed LF-1, the fee, a copy of the lease agreement, and other documentation that confirms compliance with Subpart 203 and Standard 223.03(1). A signed copy of the lease must be submitted to the Minister within seven days of the authorization being issued.

3.4  Evidential Requirements

The applicant for a leasing authorization must provide evidence about the leasing operation that may:

  1. be specified within the lease;
  2. be supplied through other documentation; or
  3. be established through a TCCA review of the proposed leasing operation.

Refer to the checklist in Appendix B of this manual.

3.5  Application Review and Approval

The regional Aircraft Registration and Leasing division will distribute the LF-1 and all other relevant documentation to the following regional/TCC divisions for review and approval:

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

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

  1. Airline Inspection Division
  2. Aircraft Maintenance and Manufacturing

The LF-1 has a signature coordination block on the bottom. Sign-off by the appropriate divisions is required prior to the issuance of the leasing authorization.

3.6  Issuance of Leasing Authorization

The Minister will issue a leasing authorization when the applicant has demonstrated that the requirements of Subpart 203 and Standard 223 are met. The leasing authorization shall be issued to the Canadian registered owner by regional Aircraft Registration and Leasing staff who hold Delegation of Authority C-9 (Civil Aviation Licensing Officers).

CARs reference: 203.03(2)

3.7  Conditions of Issue

The Minister will specify in the authorization those conditions governing the operation that are necessary to ensure aviation safety. Where TCCA subject matter experts have specified conditions, they will be added to the leasing authorization under the “conditions of issue” section. In addition, if TCCA and the applicable foreign civil aviation authority have agreed to any mutual obligations, commitments, special conditions or requirements to be fulfilled as part of the lease arrangement, they shall be included or referenced in the leasing authorization.

CARs reference: 203.03(2)

3.8  Leasing Authorization Fee

The fee to process an LF-1 is $520.00, in accordance with the requirements of Subpart 104. Cost recovery fees (see section 1.19 of this manual) may also be involved.

3.9  Fee Collection

The fee shall be submitted with the application. The fee applies whether or not the applicant is ultimately successful in obtaining a leasing authorization.

3.10  Document Copy/Distribution

Copies of the LF-1 and LF-6 shall be placed on the regional leasing and aircraft files. Copies must also be forwarded to the Chief, Aircraft Registration and Leasing (AARRC).

3.11  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.

3.12  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, however a termination date must be specified on the leasing authorization (see section 1.8 of this manual).

3.13  Individual Aircraft/Limitations

There are no limitations on the number of leasing authorizations that may be consecutively issued to a Canadian aircraft.

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