IATA Aircraft Lease Guidance

Guidance Material and Best Practices for Aircraft Leases
in respect of the Aircraft or Aircraft Documentation and Lessor will inspect the specific
rectification area of the Aircraft and the rectification item of the Aircraft Documentation to
confirm, whether in its reasonable opinion the rectification causes such Notified Discrepancy to
meet the Redelivery Conditions.
When a Notified Discrepancy is rectified by Lessee, Lessor agrees that it will not raise any new
discrepancies as part of such verification inspection unless the new discrepancy is related to the
specific Notified Discrepancy for which rectification action and re-inspection has been carried
out.
c) Acceptable Discrepancies
3. As is Where is
Lessee will endeavour to effect redelivery of the Aircraft with no Acceptable Discrepancies. At
Lessee's request, however, Lessor (acting reasonably) will consider a commercial remedy for
each Acceptable Discrepancy. Where Lessor and Lessee cannot agree a commercial remedy for
any Acceptable Discrepancy, the relevant manufacturer of the item in dispute may be consulted
for its opinion on Lessee's or Lessor's conflicting views. Notwithstanding any other provisions,
Lessor is not allowed to refuse Redelivery of the Aircraft due to Minor Discrepancies.
a) Lessee will correct each discrepancy between the condition of the Aircraft and the Redelivery
Conditions identified in accordance with the Redelivery Inspection and Acceptance Protocol,
save for acceptable discrepancies (the “Acceptable Discrepancy”) which means:
(i) Minor Discrepancies (which means one or more discrepancies that:
a. do not exceed a cost to remedy (as agreed between Lessee and Lessor) of USD XXX on
an aggregate basis (excluding the cost to remedy the discrepancies described in
Paragraph 3(a)(ii) below), and;
b. do not affect the airworthiness of the Aircraft, or the ability to gain an export certificate of
airworthiness or de-registration notice, but excludes any discrepancies which can be
objectively demonstrated to prevent the subsequent registration by the next aviation
authority) and/or;
(ii) Discrepancies with respect to which Lessor and Lessee (each acting reasonably) have
agreed to remedy or rectify after Redelivery.
b) Subject to Paragraph 3(a) above, immediately after the completion of the inspection procedure
and the correction of discrepancies which are not Acceptable Discrepancies, Lessor will accept
redelivery of the Aircraft by signing an Acceptance Certificate. Upon signing of the Acceptance
Certificate, Lessor agrees that it will not make any further claim against Lessee in respect of the
Redelivery Condition or otherwise in respect of the condition of the Aircraft (subject to any
obligations which Lessee has expressly agreed to perform after Redelivery such as shipping
parts to rectify Acceptable Discrepancies).
70 4 th Edition 2017