IATA Aircraft Lease Guidance
Guidance Material for aircraft leasing Guidance Material for aircraft leasing
Guidance Material and Best Practices for Aircraft Leases●Evaluation of expenses during the LeaseooExpenses (investments) evaluation to bring the aircraft to the airline’s standardExpenses (investments) evaluation to bring the aircraft in compliance with the local CAArequirements●●o Total estimated amount of expenses during the LeaseConclusionsUseful to attach photos with comments for:oooooCockpit with electrical power ON in order to collect maximum information regarding instrumentsarrangement and configurationPassenger SeatsGalleysLavatoriesCargo compartments●oExteriorIt is critical that the incoming Lessee’s inspection of the aircraft identifies any discrepancies from theagreed delivery condition contained in the lease agreement, and that these are raised to the attention ofthe Lessor and either rectified prior to acceptance, or clearly noted as discrepancies in thedelivery/acceptance documentation. In many cases, the discrepancy will be of a commercial nature onlyand when noted will give rise to a corresponding relaxation against redelivery conditions.3.2.8 Certificate of AcceptanceThe certificate of acceptance is the final step in the delivery process and will usually trigger the formalcommencement of the lease. After both Lessor and Lessee have signed this certificate, the Lessee cancommence operations with the aircraft. However, the certificate of acceptance is also used to officially recordthe aircraft’s condition at delivery and to formally note any discrepancies from the agreed delivery conditionwhich will then give rise to a corresponding relaxation from redelivery conditions at lease expiry, and Lesseesoften underestimate its significance. The document should also be used to accurately describe whatequipment and records were supplied and which other minor conditions or defects exist on the aircraft or inthe records (even though no compensation was awarded). This will help prevent any misunderstanding atredelivery.3.3 Transferability (Regulatory)Regulatory differences between states make the import of aircraft or part a difficult and time-consumingprocess. The major aviation states, FAA and EASA 12 , have established extensive regulations beyond the12In this respect, the European Union is considered as one ‘state’, since the EU has agreed to transfer this authority to EASA.32 4 th Edition 2017
Deliveryminimum standards set by ICAO. Those regulations are often followed or copied by other states. However,other states can interpret the regulations differently or add other regulations.Even though the import process of every state differs, the general order of importation processes is shown inFigure 6.RegistrationDesignApprovalAirworthinessCertificationContinuingAirworthinessAdditionalAirworthinessOperational/Airspace/Security/OtherRequirementsFigure 6.Import processesDesign approvals are given for each design. This means that repeat products do not need to go through thatprocess again. Hence, for aircraft series, the design approval has usually already been obtained well beforeregistration and certification of the aircraft.3.3.1 RegistrationThe registration procedure is different for every state. All states use procedures derived from ICAO, modifiedto fit their own standards.Article 18 of the Chicago Convention states ‘An aircraft cannot be validly registered in more than one State,but its registration may be changed from one state to another’. Therefore, documents which are typicallyrequired for a registration procedure are: evidence of deregistration, proof of ownership/holdership, andevidence of incorporation of the applicant.Identification requirements are generally based on ICAO Annex 7 and include installation of a fireproofidentification plate (crash plate), the application of registration marks, and the programming of unique codesfor transponders and Emergency Locator Transmitters (ELT).Some states have requirements in addition to the standard registration markings (e.g. Malaysian registeredaircraft are required to paint the Malaysian flag and the word ‘MALAYSIA’ on the aircraft).3.3.2 Design ApprovalThe design approval process pertains to the airworthiness certification of the type design of an aircraft,engine, propeller, part or component. Modifications and repairs are also subject to design approvals.Approving designs (e.g. new aircraft type) is referred to as initial airworthiness certification and consists ofthe following:●Acceptance of airworthiness codesA design approval is applied for by the OEM and issued by a National Aviation Authority (NAA) whenthey have determined that the design is in compliance with relevant design standards. High-level design4 th Edition 2017 33
- Page 1 and 2: Guidance Material and BestPractices
- Page 3 and 4: Table of ContentsList of Figures ..
- Page 5 and 6: Table of Contents4.4 Engine Power b
- Page 7 and 8: Table of ContentsAnnex X: LLP Back-
- Page 9 and 10: List of FiguresFigure 1. Document S
- Page 11 and 12: List of TablesTable 1. Different Ty
- Page 13 and 14: AbbreviationsACACMIADAIRAMCAMMAMOCA
- Page 15 and 16: AbbreviationsIPCLDNDLLPLOCLOILOPALR
- Page 17 and 18: ScopeIATA’s ‘Guidance Material
- Page 19 and 20: IntroductionIATA recommends a proce
- Page 21 and 22: Section 1—Background1Background2P
- Page 23 and 24: Backgrounddetermined period. As a r
- Page 25 and 26: Backgroundthe repair is within SRM
- Page 27 and 28: Pre-Deliveryin certain circumstance
- Page 29 and 30: Pre-Deliverylimit, however it will
- Page 31 and 32: Pre-DeliveryThe net lease is often
- Page 33 and 34: Pre-Delivery●●Fixed costFlexibl
- Page 35 and 36: Pre-Deliveryreserves rates depends
- Page 37 and 38: Pre-DeliveryAs of July 2015, sixty-
- Page 39 and 40: Deliveryredelivery conditions of th
- Page 41 and 42: DeliveryOther items, such as wheels
- Page 43 and 44: Deliverymodification and without an
- Page 45 and 46: Deliveryand registration process in
- Page 47 and 48: Deliveryimportant, as the continuou
- Page 49 and 50: Delivery3.2.6 InspectionDuring the
- Page 51: DeliveryooooGear TSN / CSN at Overh
- Page 55 and 56: Deliveryimporting states recognize
- Page 57 and 58: DeliveryIn Europe, under EASA rules
- Page 59 and 60: Deliveryspecial procedures, phraseo
- Page 61 and 62: Deliveryprogram, which effectively
- Page 63 and 64: Section 4—Operations1Background2P
- Page 65 and 66: OperationsFor maintenance reserve c
- Page 67 and 68: OperationsIt is advisable to the Le
- Page 69 and 70: Operations4.2.7 Other Important EoD
- Page 71 and 72: Operations●●●Reduced flexibil
- Page 73 and 74: Operationspractices; for example th
- Page 75 and 76: Operations4.5 Engine SubstitutionIf
- Page 77 and 78: RedeliveryA specific example of one
- Page 79 and 80: Redelivery●Project plan issued -
- Page 81 and 82: RedeliveryoLessor or Lessor represe
- Page 83 and 84: Redeliveryincludes a “redelivery
- Page 85 and 86: Redeliverythe redelivery of the Air
- Page 87 and 88: Redeliveryrecovery plan. Lessee Pro
- Page 89 and 90: Redeliveryrepresentatives fails to
- Page 91 and 92: Redelivery4. Remediesa) If Lessee f
- Page 93 and 94: References in AnnexesAnnex V Struct
- Page 95 and 96: Annex I: Example Physical Inspectio
- Page 97 and 98: Annex I: Example Physical Inspectio
- Page 99 and 100: Annex II: Typical Redelivery Record
- Page 101 and 102: Annex II: Typical Redelivery Record
Guidance Material and Best Practices for Aircraft Leases
●
Evaluation of expenses during the Lease
o
o
Expenses (investments) evaluation to bring the aircraft to the airline’s standard
Expenses (investments) evaluation to bring the aircraft in compliance with the local CAA
requirements
●
●
o Total estimated amount of expenses during the Lease
Conclusions
Useful to attach photos with comments for:
o
o
o
o
o
Cockpit with electrical power ON in order to collect maximum information regarding instruments
arrangement and configuration
Passenger Seats
Galleys
Lavatories
Cargo compartments
●
o
Exterior
It is critical that the incoming Lessee’s inspection of the aircraft identifies any discrepancies from the
agreed delivery condition contained in the lease agreement, and that these are raised to the attention of
the Lessor and either rectified prior to acceptance, or clearly noted as discrepancies in the
delivery/acceptance documentation. In many cases, the discrepancy will be of a commercial nature only
and when noted will give rise to a corresponding relaxation against redelivery conditions.
3.2.8 Certificate of Acceptance
The certificate of acceptance is the final step in the delivery process and will usually trigger the formal
commencement of the lease. After both Lessor and Lessee have signed this certificate, the Lessee can
commence operations with the aircraft. However, the certificate of acceptance is also used to officially record
the aircraft’s condition at delivery and to formally note any discrepancies from the agreed delivery condition
which will then give rise to a corresponding relaxation from redelivery conditions at lease expiry, and Lessees
often underestimate its significance. The document should also be used to accurately describe what
equipment and records were supplied and which other minor conditions or defects exist on the aircraft or in
the records (even though no compensation was awarded). This will help prevent any misunderstanding at
redelivery.
3.3 Transferability (Regulatory)
Regulatory differences between states make the import of aircraft or part a difficult and time-consuming
process. The major aviation states, FAA and EASA 12 , have established extensive regulations beyond the
12
In this respect, the European Union is considered as one ‘state’, since the EU has agreed to transfer this authority to EASA.
32 4 th Edition 2017
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