1. AIRWORTHINESS ASPECTS OF AIRCRAFT LEASING
Cooperative Development of Operational
Safety & Continuing Airworthiness
COSCAP

2. Aircraft Leasing
Produced by ICAO, COSCAP SA
Aircraft Leasing

3. Aircraft Leasing The course is based on ICAO documents
as presented in the COSCAP
Airworthiness Inspectors Handbook
Chapter 12
next slide...outline
Aircraft Leasing

4. Objective To provide Inspectors and ‘Authorities’ with
the knowledge required relating to the
‘continuing airworthiness’ of aircraft operated
under lease or an interchange arrangement,
either representing;
‘The State of the Operator’, or
‘The State of Registry’.
Obj. 2 next slide
Aircraft Leasing

5. Objective to advise the airworthiness authorities involved in leasing,
(the State of Registry, or the State of
the Operator), of possible problems
concerning the‘continuing
airworthiness’ of leased
aircraft
Obj. 2 next slide
Aircraft Leasing

6. Overview of Aircraft Leasing

7. Outline Background , Definitions, Acceptance of the "type design”,
We will cover:
Background ,
Definitions,
Acceptance of the "type design”,
Maintenance;
Aircraft Leasing

8. Outline Information on faults, malfunctions
We will cover:
Information on faults, malfunctions
and defects and other occurrences;
mandatory continuing airworthiness
information and distribution of same.
End
Aircraft Leasing

9. BACKGROUND
Legal Requirements

10. Background
ICAO, Annex 6
    The issue of an AOC by the S.O. shall be dependent upon the operator demonstrating an adequate organization, method of control and supervision of flight operations, training programme and maintenance arrangements consistent with the nature and extent of the operations specified.
6.1.2    The operator shall include in the operations manual a MEL, approved by the State of the Operator which……….
8.2.1    An operator shall ensure that there is provided, for the use and guidance of maintenance organizations and personnel, a maintenance manual containing the information specified in 11.3.
Aircraft Leasing

11. Background Continuing Airworthiness and the transfer
of information is referred to in:
Annex 6, Part I, 8.6, "Modifications and repairs"; All modifications and repairs shall comply with airworthiness requirements acceptable to the State of Registry
Annex 6, Part 1, 8.8, "Records"; 8.8.1    An operator shall ensure that the following records are kept:
Aircraft Leasing

12. Background
Annex 6, Part I, 8.9, "Continuing Airworthiness Information";
Annex 8, Part II, 4.2, "Information related to continuing AW".
8.9.1    The operator …shall monitor and assess maintenance and operational experience with respect to airworthiness and provide the information as prescribed by the State of Registry and report through the system specified in Annex 8, Part II, and
8.9.2    The operator shall obtain and assess airworthiness information and recommendations available from the (manufacturer) and shall implement resulting actions considered necessary in accordance with a procedure acceptable to the State of Registry.
Aircraft Leasing

13. Background Chapter 10 of ICAO Doc 8335,
‘Manual of Procedures for Operational
Inspection, Certification and Continued
Surveillance’ advises of legal and practical
operational problems in the certification
of an operator proposing to utilize
leased aircraft.
End
Aircraft Leasing

14. Article 83 bis Article 83 bis of the Convention on International
Civil Aviation was instigated for the purpose of
making provision in the Convention for the
transfer of certain functions and duties of the
S of R to the S of O, in the case of a lease,
charter, or interchange.
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Aircraft Leasing

15. Article 83 bis Article 83 bis states in effect that….
the S of R may by agreement with the S of O
transfer to it all or part of its functions and
duties in relation to the subject aircraft. The
S of R will then be relieved of those functions
and duties, so transferred.
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Aircraft Leasing

16. Article 83 bis The transfer shall not have effect in respect
of OTHER contracting states until it is
registered with the ICAO council and made
public or unless the S of R or S of O advise
any other concerned state of the existence of
the agreement
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Aircraft Leasing

17. DEFINITIONS

18. Definitions the organization responsible for the type design.
The ‘State of Design’,
The State having jurisdiction over
the organization responsible for the
type design.
Aircraft Leasing

19. Definitions ‘STATE OF THE OPERATOR’ The State in which the operator's
principal place of business is
located or, if there is no such place
of business, the operator's
permanent residence.
Aircraft Leasing

20. Definitions THE STATE OF REGISTRY. The State on whose register the
aircraft is entered.
End
Aircraft Leasing

21. Acceptance of the Type Design

22. Type design Airworthiness organizations must consider:
Aircraft Leasing Course
Type design
Airworthiness organizations must consider:
Compliance with local
design requirements
Period of lease
You’ve all heard the phrase: “If you fail to plan you’re planning to fail”.
Aircraft Leasing

23. Type design The CAA should consider the following
Aircraft Leasing Course
Type design
The CAA should consider the following
differences when an aircraft is transferred
from one state to another:
1) the type certification basis
2) the design-related operational requirements
Aircraft Leasing

24. Type design 3) The respective responsibilities of the two state
Aircraft Leasing Course
Type design
3) The respective responsibilities of the two state
with respect to the approval of:
changes to the type design, including those
required to take into consideration the differences
stated on the previous slide
repairs which require a design approval before
implementation.
Aircraft Leasing

25. APPROVAL OF
MAJOR REPAIRS???

26. Type design States should enter into arrangements for:
Aircraft Leasing Course
Type design
States should enter into arrangements for:
the approval of the changes to the type
design;
the performance and the certification
of the changes
the record-keeping of the changes.
You’ve all
End
Aircraft Leasing

27. MAINTENANCE

28. Maintenance The maintenance programme is usually approved by the State
of Registry (Annex 6, Part I, 11.3),
however other
arrangements are acceptable.
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Aircraft Leasing

29. Maintenance Factors to be considered when selecting
the maintenance to be carried out:
the lease period
the differences between the maintenance
requirements and the compatibility of the
maintenance programmes;
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Aircraft Leasing

30. Maintenance the absence of any approval requirements
(Factors continued)
the absence of any approval requirements
the distance between the place where
the aircraft is operated and the State
of the Operator
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Aircraft Leasing

31. Maintenance Procedures regarding,
performance and certification of maintenance,
the signing of maintenance releases, and
record-keeping
must be accepted by both authorities and
be covered by a formal agreement
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Aircraft Leasing

32. Maintenance DRY LEASE (Aircraft without crew)
Lessee (person leasing the aircraft) has
operational control
State of Registry may share airworthiness
and/or operational oversight with
State of Operator. (Note area between
wet & dry lease is often blurred)
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Aircraft Leasing

33. Maintenance WET LEASE (Aircraft leased with crew/maintenance) :
Lessor (Owner) has operational control
State of Registry normally retains airworthiness & operational oversight
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Aircraft Leasing

34. Maintenance ? Authorities must confirm by written
agreements which state will have
responsibility for every facet
of operational and airworthiness
oversight of the leased aircraft
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Aircraft Leasing

35. Reporting defects etc
Objective:
Aircraft Leasing

36. Aircraft Leasing Course
Reporting
Annex 8, Part II, requires the State of Registry to ensure that there exists a system for reporting faults, malfunctions, defects etc to the organization responsible for the type design.
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Aircraft Leasing

37. Aircraft Leasing Course
Reporting
For aircraft on lease or transfer formal arrangements shall be made between the Operator, State of Registry and the State of the Operator to ensure that defect information is forwarded to the organization responsible for the type design.
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Aircraft Leasing

38. Reporting Factors to be considered : the lease/transfer period,
Aircraft Leasing Course
Reporting
Factors to be considered :
the lease/transfer period,
the compatibility/differences between the reporting system of the States,
the absence of a reporting system in either of the States,
the regulatory requirements of the States involved.
Refer to slide
End
Aircraft Leasing

39. Mandatory Airworthiness Information

40. Mandatory AW information
In general the State of Registry has prime
regulatory responsibility for the
airworthiness of the aircraft.
If the S. of R. is also the S.of D., it will
normally be the originator of
airworthiness directives(AD).
Aircraft Leasing

41. Mandatory AW information
If the State of Registry is not the S. of D.
it must have procedures to respond to
mandatory requirements issued by the S. of D
Notwithstanding the above the State of the
Operator or the S. of R. may
also issue mandatory requirements to
aircraft operated or registered in its state
Aircraft Leasing

42. Mandatory AW information
The S.of R., and S. of O., in consultation with
the operator should agree on which of the States
' mandatory requirements’ apply to the
transferred aircraft. This can be achieved, by
a general 'agreement on aircraft transfer”
between the States or by individual
arrangements at the time of transfer
Aircraft Leasing

43. Distribution of Mandatory
Aircraft leasing Course
Distribution of Mandatory
Requirements
Mandatory requirements issued
by the various airworthiness authorities,in the form of an AD, or equivalent, should be made available
to affected operators by the State of Registry.
End
Aircraft Leasing

44. Maintenance Aspects
of Aircraft Transfer

45. Maintenance Aspects Introduction Problems can be caused by:
differing national airworthiness standards;
differing national operational standards;
differing build standards; and
non-standard application of the above.
Aircraft Leasing

46. Maintenance Aspects General The data following is intended to define
the minimum requirements for aircraft owners,
airlines or regulatory authorities who are
planning or preparing to transfer or lease an
aircraft across international boundaries.
Aircraft Leasing

47. Maintenance Aspects General Documentation should be provided to show
which national regulations the aircraft has
been maintained and operated in compliance
with and include details of any deviations from,
or exemptions issued against,
those regulations.
....
Aircraft Leasing

48. Maintenance Aspects General The Maintenance program should show:
Approval by the authority,
Traceability - back to base document,
e.g. MRB report,
Documentation - A printed copy of the
maintenance schedule should show
traceability to the work cards
Aircraft Leasing

49. Maintenance Aspects Records & Documentation
Language- Must be maintained in an
acceptable language
Details of the aircraft’s maintenance history
must be made available to satisfy the
relevant authorities as to the serviceability of
the of the aircraft.e.g. AD compliance, time on
life-limited parts, details work performed etc.
Aircraft Leasing

50. Maintenance Aspects Transfer of records
Transfer of records will depend upon the type
of lease and who will be responsible for the
maintenance.
Transfer of all relevant records must be made
to the operator responsible for the maintenance
under the agreement.
Aircraft Leasing

51. Maintenance Aspects Transfer of records
Records required to be transferred:
Service bulletins/Ads completed,
Modification details,
Major Repair details.
Aircraft Leasing

52. Maintenance Aspects
Minimum Airworthiness standards for leasing agreements
The lease agreement should ensure at least that:
a) the lessor and lessee are properly identified;
b) the aircraft subject to the lease agreement
is identified by aircraft make and model, registration number and manufacturer's serial number;
.... 9
Aircraft Leasing

53. Maintenance Aspects
Minimum Airworthiness standards for leasing agreements
c) the effective dates of the lease are properly identified;
d) the person having operational control is specifically identified;
e) the State of Registry and the airworthiness code under which the aircraft will be maintained are identified;
....
Aircraft Leasing

54. Maintenance Aspects Minimum Airworthiness standards
f) the responsibilities for the accomplishment of maintenance in accordance with the designated airworthiness code are identified;
g) the responsibilities for keeping the aircraft maintenance records in accordance with the designated airworthiness code are identified; and
h) the maintenance/inspection programme that will be utilized is specifically identified.
....
Aircraft Leasing

55. Lease Document Presentation
Aircraft Leasing

56. Lease Document Presentation
Recommended format
Section 1: Status summary and data certification
Section 2: The aircraft lease agreement
Section 3: Operating authority
Section 4: Export certificate of airworthiness
Section 5: Current inspection status summary if
Aircraft Leasing

57. Document Presentation
Recommended format
Section 6: Summary of current status of life-limited parts
Section 7: Current status of Airworthiness Directives
Section 8: Aircraft maintenance programme integration if
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Aircraft Leasing

58. Legal Agreements Memo of Understanding between xxxx and yyy .
It is hearby agreed that
the first party in consulation
with the second party ....
Aircraft Leasing

59. Legal Agreements The ‘AIRWORTHINESS INSPECTORS
Aircraft leasing Course
Legal Agreements
The ‘AIRWORTHINESS INSPECTORS
MANUAL’ contains copies of three
Airworthiness agreements for use
between two contracting states
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Aircraft Leasing

60. Legal Agreements Appendix B
Aircraft leasing Course
Legal Agreements
Appendix B
This example covers the exchange of aeronautical
products, the acceptance of airworthiness compliance
and certification, the performance of modification
and maintenance, the continuing airworthiness
and mutual co-operation and assistance.
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Aircraft Leasing

61. Legal Agreements Appendix C This example covers the performance of
Aircraft leasing Course
Legal Agreements
Appendix C
This example covers the performance of
modification and maintenance,
the continuing airworthiness and mutual
co-operation and assistance.
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Aircraft Leasing

62. Legal Agreements Appendix D This example covers the operation, the
Aircraft leasing Course
Legal Agreements
Appendix D
This example covers the operation, the
maintenance and its performance, the
performance of modifications, the MMEL/MEL,
the information on faults, malfunctions, defects
and other occurrences, the surveillance (cont..)
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Aircraft Leasing

63. Legal Agreements (continued)
Aircraft leasing Course
Legal Agreements
(continued)
and the continuing airworthiness of aircraft
transferred between the States.
This Memorandum of Understanding is based
on the existence of one of the bilateral
arrangements described in Appendix B or C. ‘
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End
Aircraft Leasing

64. End Cooperative Development of Operational
Safety & Continuing Airworthiness