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AIRWORTHINESS ASPECTSOF

AIRCRAFT LEASING

Cooperative Development of Operational Cooperative Development of Operational Safety & Continuing AirworthinessSafety & Continuing Airworthiness

COSCAPCOSCAP

Aircraft LeasingAircraft Leasing

Produced by ICAO, COSCAP SA

Aircraft LeasingAircraft Leasing

The course is based on ICAO documents as presented in the COSCAPAirworthiness Inspectors Handbook Chapter 12

ObjectiveObjective•To provide Inspectors and ‘Authorities’ with the knowledge required relating to the ‘continuing airworthiness’ of aircraft operatedunder lease or an interchange arrangement, either representing; •‘The State of the Operator’, or•‘The State of Registry’.

ObjectiveObjectiveto advise the airworthiness authorities involved in leasing, (the State of Registry, or the State ofthe Operator), of possible problems concerning the‘continuing airworthiness’ of leasedaircraft

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Overview of Aircraft Leasing

OutlineOutlineWe will cover:

• Background ,• Definitions,• Acceptance of the "type design”,• Maintenance;

OutlineOutlineWe will cover:

• Information on faults, malfunctions and defects and other occurrences;• mandatory continuing airworthiness information and distribution of same.

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9Legal RequirementsLegal Requirements

BACKGROUND

BackgroundBackground4.2.1.3    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.

• ICAO, Annex 6

BackgroundBackground 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 RegistryAnnex 6, Part 1, 8.8, "Records"; 8.8.1    An operator shall ensure that the following records are kept:

BackgroundBackground•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, 4.2.5 and 4.2.8.

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.

BackgroundBackground

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

Article 83 bis 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.

Article 83 bisArticle 83 bisArticle 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.

Article 83 bisArticle 83 bisThe 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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DEFINITIONS

DefinitionsDefinitions The ‘State of Design’, The State having jurisdiction over the organization responsible for the type design.

DefinitionsDefinitions‘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.

DefinitionsDefinitionsTHE STATE OF REGISTRY.

The State on whose register the aircraft is entered.

End

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Acceptance of the Type Design

Aircraft Leasing Course

Type designType designAirworthiness organizations must consider:• Compliance with local design requirements• Period of lease

Aircraft Leasing Course

Type designType 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 Course

Type designType design3) 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.

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APPROVAL OF

MAJOR REPAIRS???

Aircraft Leasing Course

Type designType designStates 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.

End

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MAINTENANCE

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

MaintenanceMaintenanceFactors 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;

MaintenanceMaintenance(Factors continued)• the absence of any approval requirements• the distance between the place where the aircraft is operated and the State of the Operator

MaintenanceMaintenanceProcedures 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

MaintenanceMaintenanceDRY 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)

MaintenanceMaintenanceWET LEASE (Aircraft leased with crew/maintenance) :• Lessor (Owner) has operational control• State of Registry normally retains airworthiness & operational oversight

MaintenanceMaintenanceAuthorities 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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Reporting defects Reporting defects etcetc

Aircraft Leasing Course

ReportingReportingAnnex 8, Part II, 4.2.5 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.

Aircraft Leasing Course

ReportingReportingFor 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.

Aircraft Leasing Course

ReportingReportingFactors 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.End

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Mandatory Mandatory Airworthiness Airworthiness

InformationInformation

Mandatory AW informationMandatory AW informationIn 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).

Mandatory AW informationMandatory AW informationIf 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

Mandatory AW informationMandatory AW informationThe 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 Course

Distribution of MandatoryDistribution of MandatoryRequirementsRequirements

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.

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Maintenance Aspects Maintenance Aspects of Aircraft Transferof Aircraft Transfer

Problems can be caused by:•differing national airworthiness standards;•differing national operational standards;•differing build standards; and•non-standard application of the above.

Maintenance AspectsMaintenance AspectsIntroduction

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.

Maintenance AspectsMaintenance AspectsGeneral

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.

Maintenance AspectsMaintenance AspectsGeneral

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

Maintenance AspectsMaintenance AspectsGeneral

•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.

Maintenance AspectsMaintenance AspectsRecords & Documentation

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.

Maintenance AspectsMaintenance AspectsTransfer of records

Records required to be transferred:

•Service bulletins/Ads completed,

•Modification details,

•Major Repair details.

Maintenance AspectsMaintenance AspectsTransfer of records

Maintenance AspectsMaintenance Aspects

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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 agreementis identified by aircraft make and model, registration number and manufacturer's serial number;

Maintenance AspectsMaintenance AspectsMinimum 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;

Maintenance AspectsMaintenance AspectsMinimum 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.

Lease Document Lease Document PresentationPresentation

Lease Document Lease Document PresentationPresentation

Recommended formatSection 1: Status summary and data certificationSection 2: The aircraft lease agreementSection 3: Operating authoritySection 4: Export certificate of airworthinessSection 5: Current inspection status summary

Document PresentationDocument Presentation

Recommended formatSection 6: Summary of current status of life-

limited partsSection 7: Current status of Airworthiness

DirectivesSection 8: Aircraft maintenance programme

integrationEnd

Legal Legal AgreemeAgreeme

ntsnts

Aircraft leasing Course

Legal AgreementsLegal Agreements

The ‘AIRWORTHINESS INSPECTORS MANUAL’ contains copies of three

Airworthiness agreements for use between two contracting states

Aircraft leasing Course

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Legal AgreementsLegal Agreements

Appendix BThis 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.

Aircraft leasing Course

Legal AgreementsLegal Agreements

Appendix CThis example covers the performance of modification and maintenance, the continuing airworthiness and mutual co-operation and assistance.

Aircraft leasing Course

Legal AgreementsLegal AgreementsAppendix DThis example covers the operation, the maintenance and its performance, the performance of modifications, the MMEL/MEL, the information on faults, malfunctions, defectsand other occurrences, the surveillance (cont..)

Aircraft leasing Course

Legal AgreementsLegal 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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Cooperative Development of Operational Cooperative Development of Operational Safety & Continuing AirworthinessSafety & Continuing Airworthiness