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Part II - Aircraft Identification and Registration and Operation of a Leased Aircraft by a Non-registered Owner

Notice:  Please be advised that there was no scheduled amendment for December 2012 (2012-2). The next amendment is planned for Spring 2013 (2013-1).

Canadian Aviation Regulations (CARs) 2012-1

Subpart 3 - Operation of a Leased Aircraft by a Non-registered Owner

Content last revised: 2005/12/01

Interpretation

203.01 In this Subpart,

"Canadian air operator" includes the holder of a flight training unit operator certificate issued under Subpart 6 of Part IV and the holder of a private operator certificate issued under Subpart 4 of Part VI; (exploitant aérien canadien)
(amended 2000/12/01; previous version)

"lease" means an agreement in respect of the operation of an aircraft that

(a) specifies a commencement and a termination date,

(b) gives the lessee legal custody and control, and the right to exclusive possession and use, of the aircraft during its term; and

(c) may include provisions respecting the operation of the aircraft for hire or reward; (location)
(amended 2000/12/01; previous version)

"leasing operation" - means the operation of an aircraft pursuant to this Subpart. (utilisation d'aéronefs loués)

"operator certificate" includes an air operator certificate, a flight training unit operator certificate and a private operator certificate. (certificat d'exploitation)
(amended 2000/12/01; no previous version)

Application

203.02 (1) This Subpart applies to the following persons in respect of the operation of a leased aircraft by the lessee if the aircraft is registered in the name of the lessor:
(amended 2000/12/01; previous version)

(a) a Canadian air operator that leases a Canadian aircraft from another Canadian air operator;
(amended 2000/12/01; previous version)

(b) a foreign air operator that leases a Canadian aircraft from a Canadian air operator that is operating under Part IV, VI or VII;
(amended 2000/12/01; previous version)

(c) a Canadian air operator that is operating under Part IV, VI or VII and that leases an aircraft registered in a foreign state; and
(amended 2000/12/01; previous version)

(d) a foreign air operator that leases a Canadian aircraft from a Canadian aircraft manufacturer.
(amended 2000/12/01; previous version)

(2) This Subpart does not apply in respect of the operation of a private aircraft.

Leasing Operations - General

203.03 (1) No person who is not the registered owner of an aircraft shall operate the aircraft as part of a leasing operation without an authorization issued pursuant to subsection (2) unless

(a) the lessor and the lessee each hold a Canadian operator certificate issued in respect of the aircraft type to be operated;
(amended 2000/12/01; previous version)

(b) the lessee is qualified to be the registered owner of a Canadian aircraft;
(amended 2000/12/01; previous version)

(c) the maintenance control system referred to in section 406.35 or 706.02 and the maintenance schedule approved by the Minister under subsection 605.86(2) are, during the term of the lease, equivalent for the lessor and the lessee;
(amended 2005/11/15; previous version)

(d) the crew members of the aircraft are employed by the lessee; and

(e) the registered owner informs the Minister in writing, no later than seven days after the term of the lease commences, of

(i) the registration mark, manufacturer model designation and serial number of the aircraft,

(ii) the names, addresses and telephone numbers, and facsimile numbers, if any, of the registered owner and the lessee,

(iii) the Canadian operator certificate number and the approved maintenance organization certificate numbers of the lessor and the lessee,
(amended 2000/12/01; previous version)

(iv) the commencement and termination dates of the lease,

(v) the name of the person who is responsible for the maintenance of the aircraft during the term of the lease, and

(vi) the address of the main maintenance base for the aircraft.

(2) Subject to section 203.08, the Minister shall, on receipt of an application from a Canadian air operator that conforms with the Standards Respecting the Operation of a Leased Aircraft by a Non-Registered Owner and that includes evidence that establishes that the Canadian air operator meets those standards, issue a written authorization to the Canadian air operator permitting the operation of a Canadian or foreign aircraft by the Canadian air operator, or the operation of a Canadian aircraft by a foreign operator, as part of a leasing operation, and shall specify in the authorization those conditions governing the operation that are necessary to ensure aviation safety.

(3) An authorization issued pursuant to subsection (2) expires on the earliest of

(a) the date on which the lease is terminated,

(b) the date specified by the Minister in the authorization,

(c) the date on which the certificate of registration of the aircraft is cancelled,

(d) the date on which the operator certificate is suspended or cancelled, and
(amended 2000/12/01; previous version)

(e) the date on which there is a change in any of the information that was submitted in support of the application referred to in subsection (2) and on which the issuance of the authorization was based.

(4) Where an authorization is required under subsection (1) and has been issued under subsection (2), no person shall operate a leased aircraft unless the authorization is carried on board.

(5) If a leasing advisory is provided to the Minister under subsection (1), no person shall operate a leased aircraft unless a copy of the advisory is carried on board.
(amended 2000/12/01; no previous version)

Leasing Operations - International

203.04 (1) No person shall operate a leased aircraft if one of the lessor and the lessee of the aircraft is not a Canadian, unless the Minister and the civil aviation authority of the state of the lessor or the lessee have consented to such operation.

(2) No person shall operate an aircraft under the circumstances referred to in subsection (1) in a third state, other than Canada and the state of the lessor or the lessee, except in accordance with the laws of the third state.

Registration of Leased Aircraft

203.05 The certificate of registration of a leased Canadian aircraft operated pursuant to section 203.03 remains valid notwithstanding any change in the legal custody and control of the aircraft that takes place

(a) at the commencement or termination of the lease; and

(b) where the Minister has issued an authorization pursuant to subsection 203.03(2), at any other time during the term of the lease that is specified in the authorization.

Forwarding of Airworthiness Directives

203.06 (1) Where an authorization has been issued pursuant to subsection 203.03(2) in respect of a Canadian aircraft, the registered owner of the aircraft shall, immediately on receipt of the authorization, forward to the lessee all airworthiness directives that apply to the aircraft.

(2) Where an authorization has been issued pursuant to subsection 203.03(2) in respect of an aircraft registered in a foreign state, the Canadian lessee shall ensure that the aircraft conforms with all applicable airworthiness directives.

Maximum Number of Leased Aircraft

203.07 (1) No Canadian air operator shall, pursuant to section 203.03, operate a number of leased aircraft registered in a foreign state that exceeds 25 per cent of the total number of aircraft registered to that Canadian air operator, rounded to the next highest whole number.

(2) No Canadian air operator shall, pursuant to section 203.03, lease to foreign air operators 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.

Limits on Period of Operation under Authorization

203.08 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

(a) the Canadian air operator being issued with one or more such authorizations in respect of aircraft registered in a foreign state for 24 months or more during any period of 30 consecutive months; or

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

Submission of Signed Lease

203.09 A Canadian air operator that has been issued with an authorization by the Minister pursuant to subsection 203.03(2) shall, within seven days after the day on which the authorization was issued, submit to the Minister a signed copy of the lease.

Date modified:
2013-01-23