IATA Aircraft Lease Guidance

Guidance Material and Best Practices for Aircraft Leases
The FAA defines an AD as directives which are legally enforceable rules that apply to aircraft, aircraft engines,
propellers, and appliances. An AD is applicable to the aircraft indicated in the AD and an AMOC can be
requested from the FAA which allows the executor to apply for an alternative without compromising the level
of safety initiated by the publication of the AD.
In Order 8110.103A, the FAA states the ruling on AMOCs and the transferability between operators and
jurisdictions: Depending on the transferability of the AMOC (A transferable AMOC is an AMOC that will
continue to apply to a product after it has been transferred to a new owner/operator, as stated in 3-11 of
Order 8110.103A) an AMOC proposal from a foreign entity (owner, operator, or another CAA) can be approved
by the FAA. A foreign-registered aircraft today could be US-registered tomorrow. The importing
owner/operator must demonstrate FAA AD compliance before the FAA can determine the aircraft to be
airworthy.
An owner who has registered his US-manufactured aircraft in another jurisdiction can propose an AMOC to
the FAA, and the FAA can approve or deny this AMOC in line with FAA ADs for foreign aircraft. However, the
FAA cannot approve AMOCs for another CAA’s AD.
3. AD File Overview
3.1 Introduction
The goal of this annex is to provide the Lessee with a clear and accurate description of the steps to take for
tracking and documenting the relevant ADs in the most practical manner. This will create a clear view on the
handling of ADs and will mitigate problems at end of lease. Regardless of the classification of the AD (e.g.
repetitive or one-time; ‘Final’ AD or Emergency AD), the process of checking applicability, performing the
tasks of the AD in the timeframe defined, and documenting the respective documents is the same.
Figure 13 provides an overview and guideline for industry best practice in processing and documenting ADs,
defined from the perspective of various stakeholders (Lessee, authorities, and Lessor). As indicated in this
figure, the AD consists of two separate parts: the summary sheet and the AD compliance binder.
110 4 th Edition 2017