Standard 223 - Operation of a Leased Aircraft by a Non-registered Owner - Canadian Aviation Regulations (CARs)

Content last revised: 2005/12/01

223.03 Leasing Operations - General

An application from a Canadian air operator for an authorization referred to in subsection 203.03(2) of the Canadian Aviation Regulations permitting the operation of a leased aircraft shall meet the following requirements:

• (1) A Canadian Air Operator that Leases a Canadian Aircraft from Another Canadian Air Operator
  (amended 2000/12/01)
  • (a) Evidence establishing that, throughout the term of the lease, the aircraft:
    • (i) will be in the legal custody and control of the lessee, subject to any lease interchange conditions specified in the authorization in accordance with paragraph 203.05(b), and
      (amended 2005/12/01)
    • (ii) will not be made the subject of another lease during the term of the lease authorized by the Minister for that aircraft;
  • (b) evidence establishing that the lessor and the lessee of the aircraft each hold a Canadian operator certificate;
    (amended 2000/12/01)
  • (c) evidence establishing that the lessee is responsible for the maintenance of 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), and in accordance with any requirements set out in the authorization issued pursuant to subsection 203.03(2) of the Canadian Aviation Regulations;
    (amended 2000/12/01)
  • (d) evidence establishing that the aircraft crew members are in the employ of the lessee; and
    (amended 2000/06/01)
  • (e) the form Application to Authorize a Leasing Operation Involving Two Canadian Air Operators (LF-1) is duly completed and signed in ink.
    (amended 2000/12/01)
• (2) 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)

  Evidence establishing that:

  • (a) throughout the term of the lease, the aircraft:
    • (i) will be registered to the lessor,
      (amended 2005/12/01)
    • (ii) will be in the legal custody and control of the lessee, subject to any lease interchange conditions specified in the authorization in accordance with paragraph 203.05(b), and
      (amended 2005/12/01)
    • (iii) will not be made the subject of another lease during the term of the lease authorized by the Minister for that aircraft;
  • (b) evidence establishing that the Canadian lessor holds a Canadian operator certificate issued in respect of the aircraft type that is being leased;
    (amended 2000/12/01)
  • (c) evidence establishing that the lessee:
    • (i) 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,
    • (ii) holds an air operator certificate or equivalent document, issued by the foreign contracting state in respect of the aircraft type being leased,
    • (iii) will operate the aircraft on a unit toll service, a charter service, or other commercial air service approved by Canada, and
    • (iv) 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 in accordance with the maintenance schedules approved by the Minister pursuant to subsection 605.86(2);
      (amended 2000/12/01)
  • (d) an indication in the application as to:
    • (i) the location at which the aircraft will have its operations base during the term of the lease,
    • (ii) each location at which the aircraft will have a maintenance base during the term of the lease, and
    • (iii) the fact that the lessee will be responsible for the maintenance of the aircraft during the term of the lease 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);
      (amended 2000/06/01)
  • (e) evidence establishing that the lessee's main operations base, during the term of the lease, will be located in the state of the lessee;
  • (f) evidence establishing that the aircraft:
    • (i) has a valid certificate of airworthiness,
    • (ii) will not undergo modification unless it is authorized by the Minister,
    • (iii) will continue to meet 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) are, during the term of the lease, equivalent for the lessor and the lessee, prescribed in the Canadian Aviation Regulations.
      (amended 2000/12/01)
    • (iv) will be maintained during the term of the lease, in a configuration that complies with its type certificate or such other equivalent document, and
      (amended 2000/06/01)
    • (v) will be maintained in accordance with an inspection program approved by the Minister and any additional requirements set out in the authorization issued pursuant to subsection 203.02(2) of the Canadian Aviation Regulations;
  • (g) evidence establishing that every crew member assigned to the aircraft by the lessee:
    • (i) 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,
    • (ii) where the aircraft will be operated outside the state of the lessee, and that foreign state is a contracting state, holds the licence appropriate to the crew member's duties issued by Canada or issued by the state of the lessee and validated by Canada,
      (amended 2005/12/01)
    • (iii) where the aircraft will be operated outside the state of the lessee and that foreign state is not a contracting state, holds the licence appropriate to the crew member's duties issued by Canada, and
    • (iv) 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 1, of Annex 6 to the Convention On International Civil Aviation;
  • (h) the form Application to Authorize a Leasing Operation Involving a Canadian Air Operator Lessor and a Foreign Air Operator Lessee (LF-2) is duly completed and signed in ink.
    (amended 2000/12/01)

• (3) A Canadian Air Operator that is Operating under Part IV, VI or VII and that Leases an Aircraft Registered in a Foreign State
  (amended 2000/12/01)

  Evidence establishing that:

  • (a) the aircraft
    • (i) is of a type and model designation to be eligible for a Canadian certificate of airworthiness and complies with all environmental and operational requirements,
    • (ii) is registered in a foreign contracting state,
    • (iii) has a valid certificate of airworthiness issued in respect of the aircraft by the state of registration, and
    • (iv) will not be made the subject of another lease during the term of the lease authorized by the Minister for that aircraft;
  • (b) 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;
    (amended 2000/12/01)
  • (c) the lessee provides the Minister with evidence establishing that
    • (i) 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),
      (amended 2000/12/01)
    • (ii) 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
      (amended 2000/03/01)
    • (iii) 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;
  • (d) evidence establishing that the aircraft crew members are in the employ of the lessee;
  • (e) evidence establishing that, during the term of the lease authorized by the Minister, the aircraft:
    • (i) will be in the legal custody and control of the lessee, subject to any lease interchange conditions specified in the authorization in accordance with paragraph 203.05(b),
      (amended 2005/12/01)
    • (ii) 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
      (amended 2000/12/01)
    • (iii) 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;
  • (f) the form Application to Authorize a Leasing Operation Involving a Canadian Air Operator Lessee and a Foreign Lessor (LF-3) is duly completed and signed in ink.
    (amended 2000/12/01)

  (4) A Foreign Air Operator that Leases a Canadian Aircraft from a Canadian Aircraft Manufacturer
  (amended 2000/12/01)

  • (a) evidence establishing that the leasing operation is for the purpose of providing a Canadian registered aircraft to the lessee pending the type certification of that aircraft type and model designation by the state of the lessee or for the purpose of product support;
    (amended 2005/12/01)
  • (b) evidence establishing that the aircraft type and model designation will be undergoing the process of airworthiness certification by the foreign state of the lessee;
  • (c) evidence establishing that, throughout the term of the lease, the aircraft:
    • (i) will be registered to the lessor,
      (amended 2005/12/01)
    • (ii) will be in the legal custody and control of the lessee, subject to any lease interchange conditions specified in the authorization in accordance with paragraph 203.05(b), and
      (amended 2005/12/01)
    • (iii) will not be made the subject of another lease during the term of the lease authorized by the Minister for that aircraft;
  • (d) evidence establishing that the lessor is
    • (i) a Canadian manufacturer of aircraft, and
    • (ii) the holder of an aircraft type certificate in respect of the type and model designation of the leased aircraft;
  • (e) evidence establishing that the lessee
    • (i) 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,
    • (ii) holds an air operator certificate or equivalent document, issued by the foreign contracting state in respect of the aircraft type being leased,
    • (iii) will operate the aircraft on a unit toll service, a charter service, or other commercial air service approved by Canada, and
    • (iv) 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);
      (amended 2000/12/01)
  • (f) evidence establishing that the aircraft
    • (i) has a valid certificate of airworthiness,
    • (ii) 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),
      (amended 2000/12/01)
    • (iii) will be maintained in a configuration that complies with its Canadian type certificate or other equivalent document, and
      (amended 2000/06/01)
    • (iv) will not undergo modification unless it is authorized by the Minister;
  • (g) evidence establishing that every crew member assigned to the aircraft by the lessee:
    • (i) 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,
      (amended 2005/12/01)
    • (ii) where the aircraft will be operated outside the state of the lessee and the foreign state is a contracting state, holds the licence appropriate to the crew member's duties issued by Canada or issued by the state of the lessee and validated by Canada,
    • (iii) where the aircraft will be operated outside the state of the lessee and that foreign state is not a contracting state, holds the licence appropriate to the crew member's duties issued by Canada, and
    • (iv) 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 1, Annex 6 to the Convention On International Civil Aviation;
  • (h) evidence establishing that the aircraft crew members are in the employ of the lessee;
  • (i) the form Application to Authorize a Leasing Operation Involving a Canadian Aircraft Manufacturer Lessor and a Foreign Air Operator Lessee (LF-4) is duly completed and signed in ink.
    (amended 2000/12/01)