Memoranda of understanding

Memorandum of understanding on the lease of aircraft between the Netherlands Minister of Transport, Public Works and Water Management and the Canadian Minister of Transport

(hereinafter referred to as "the Authorities")

Whereas

the State of each Authority has ratified the Protocol Relating to an Amendment to the Convention on International Civil Aviation (Chicago Convention) signed at Montreal on 6 October 1980 (Article 83 bis);
each Authority has signed with the other Authority a Technical Arrangement on Airworthiness providing for the approval or acceptance by the importing Authority of approvals or findings of compliance by the exporting Authority in respect of airworthiness;
each Authority acknowledges that it is desirable, pending the coming into force of Article 83 bis, to enter into an arrangement providing for the development of procedures between the Authorities that will facilitate the lease of aircraft between operators of the States of the Authorities, thereby enabling greater flexibility in the commercial aviation industry and avoiding redundant technical evaluations, tests and inspections by the Authorities;
each Authority has determined that the standards of airworthiness and systems for airworthiness, environmental certification and maintenance of the other Authority are sufficiently equivalent to its own to make this Arrangement practicable;
each Authority has determined that the operating requirements and design-related operational requirements of the other Authority are sufficiently equivalent to its own to make this Arrangement practicable; and

Therefore the Authorities have reached the following understanding to provide for the carrying out and the acceptance of certain functions, in particular the performance of inspection and surveillance activities, required to ensure that an aircraft, during the term of a lease, is operated and maintained to their mutual satisfaction.

1.0 Definitions

1.2 "aviation document" means any licence, permit, accreditation, certificate or other document issued by an Authority to a person or in respect of an aircraft;

1.3 "design-related operational requirements" means the operational or environmental requirements affecting either the design features of an aircraft or performance data on the design relating to the operations or maintenance of an aircraft that make that aircraft eligible for a particular kind of operation in a State;

1.5 "lease approval" means an authorization, by the Lessee Authority, pursuant to Article 4, of the operation of an aircraft that is proposed to be subject to a lease;

1.6 "Lessee Authority" means the Authority of the State of the lessee operator of an aircraft subject to a lease;

1.7 "Lessor Authority" means the Authority of the State of Registry of an aircraft subject to a lease.

2.0 Scope Of Application

2.1 This Memorandum will apply only to a lease of an aircraft

from an operator of the State of one Authority to an operator of the State of the other Authority,
which is operated by the lessee,
which is registered in the State of one of the Authorities, and
which is authorized for commercial operations.

3.0 General Provisions

3.1 Each Authority will provide for the requisite authority and administrative procedures to enable and facilitate the authorization of leases of aircraft registered in the State of that Authority to operators of the State of the other Authority.

3.2 Each Authority will provide for the authority and administrative procedures to permit the carrying out and acceptance of the functions contemplated in this Memorandum.

3.3 Each Authority will endeavour to ensure the harmonization of administrative procedures and practices relating to the authorization of leases of aircraft registered in the State of that Authority to operators of the State of the other Authority, and relating to the control of those aircraft during the term of the lease.

4.0 Lease Authorization

4.1 Where, on receipt of an application from an operator of the State of the Lessee Authority seeking authorization of a lease to it of an aircraft registered in the State of the Lessor Authority, the Lessee Authority proposes to authorize that lease, the Lessee Authority will notify the Lessor Authority of its intention to issue a lease approval, and of any conditions that it proposes to apply to the lease approval.

4.2 Upon notification by the Lessee Authority of its intention to issue a lease approval, the Lessor Authority will notify the Lessee Authority of any objection it has to the lease of the aircraft, or of any condition that it desires to apply to the lease approval.

4.3 In considering the application, the Authorities will exchange such information as they consider necessary for the purpose of ensuring that there will be compliance with the applicable standards of airworthiness, operating requirements, design-related operational requirements and associated requirements.

4.4 Except as provided in Article 4.5, the Lessee Authority may issue a lease approval in respect of an aircraft, subject to any conditions it considers appropriate, where it is satisfied that the aircraft will be operated and maintained in accordance with the applicable standards of airworthiness, operating requirements, design-related operational requirements and associated requirements.

4.5 Neither Authority will issue a lease approval or otherwise authorize a lease unless there is agreement between the Authorities.

4.6 Where the Lessee Authority issues a lease approval in writing, it will, on the request of the Lessor Authority, provide a copy of the lease approval to the Lessor Authority.

4.7 Where the Lessor Authority issues an aviation document authorizing a lease, it will, on the request of the Lessee Authority, provide a copy of the aviation document to the Lessee Authority.

4.8 Each Authority will require that the following documents be carried on board the aircraft during the term of the lease:

the lease approval, if in writing,
any aviation document authorizing a lease, and
a copy of any supplemental document setting out the authorization or acceptance between the Authorities to perform certain functions.

4.9 Each Authority may terminate at any time its authorization of a lease, and will consult the other Authority prior to so acting.

5.0 Modification And Repairs

5.1 The Lessee Authority, as a condition of issuance of a lease authorization in respect of an aircraft, may require a modification to that aircraft for the purpose of compliance with its approved type design for that aircraft or with its standards of airworthiness and design-related operational requirements.

5.2 Prior to issuing a lease authorization, the Lessee Authority will ensure that the design for any modification has been approved or accepted by the Lessor Authority.

5.3 During the term of a lease authorized for an aircraft, the Lessee Authority may authorize the performance and certification, in accordance with the Technical Arrangement on Airworthiness, of modification or repairs to that aircraft.

5.4 The Lessee Authority will ensure, prior to authorizing the performance and certification of modification or repairs to an aircraft, that the design for that modification or those repairs has been approved or accepted by the Lessor Authority.

5.5 The Lessor Authority will accept the performance and certification of modification or repairs to an aircraft where that performance and certification has been authorized by the Lessee Authority.

6.0 Continuing Airworthiness

6.1 The Lessor Authority will notify the Lessee Authority of any mandatory airworthiness modification, special inspection, special operating limitation or other action required by the State of the Lessor Authority in respect of a leased aircraft during the term of a lease.

6.2 The Lessee Authority will endeavour to ensure that the required action is carried out within the time limit prescribed therein, and that the required action is performed and certified in accordance with the terms of the Technical Arrangement on Airworthiness between the Authorities.

7.0 Maintenance

7.1 Unless the Authorities specifically agree otherwise, the Lessee Authority, in respect of a leased aircraft, will accept the maintenance inspection schedule approved or accepted by the Lessor Authority.

7.2 The Lessor Authority will notify the Lessee Authority of any change in the approved maintenance inspection schedule which may affect the lease authorization.

7.3 Where the Lessee Authority proposes in a particular case to grant an extension to the time requirements of the approved maintenance inspection schedule, it will seek the consent of the Lessor Authority to that extension.

7.4 During the term of a lease authorized for an aircraft, the Lessee Authority may authorize the performance and certification, in accordance with the Technical Arrangement on Airworthiness, of maintenance of that aircraft.

7.5 The Lessor Authority will accept the performance and certification of maintenance of an aircraft where that performance and certification has been authorized by the Lessee Authority.

8.0 Service Difficulty Reporting

8.1 During the term of a lease, the applicable requirements in respect of service difficulty reporting, or equivalent procedure, are those of the State of the Lessee Authority.

8.2 The Lessee Authority will provide in a lease authorization a condition requiring the lessee operator to provide service difficulty reports to a specified Authority, and that Authority will ensure that a copy of the report is forwarded to the other Authority as soon as practicable.

9.0 Flight Authorization

9.1 During the term of the lease the Lessor Authority will only issue, renew or reinstate the certificate of airworthiness for the aircraft involved when the Lessee Authority has advised the Lessor Authority that all applicable requirements of this Memorandum are satisfied and the aircraft is in such a condition that the Lessee Authority itself would have issued, renewed or reinstated the certificate of airworthiness if the aircraft were registered with the Lessee Authority.

9.2 For the purpose of enabling the repositioning or testing of a leased aircraft in a situation where a certificate of airworthiness for the aircraft is not in force,

the Lessee Authority may issue a temporary authorization in respect of the aircraft, where the flight will be conducted entirely within the State of the Lessee Authority; and
the Lessor Authority may, on the recommendation of the Lessee Authority, issue a flight authorization in respect of the aircraft for any flight outside the territory of the State of the Lessee Authority.

10.0 Operations

10.1 The Lessee Authority will be responsible for the authorization of all operations in respect of an aircraft during the term of a lease authorized for that aircraft.

10.2 The Lessee Authority may approve or accept a Minimum Equipment List in respect of an aircraft.

10.3 The Lessee Authority will endeavour to ensure that an aircraft is operated in accordance with

the flight manual approved by the Lessor Authority, and
the operations manual approved or accepted by it.

11.0 Surveillance And Inspection

11.1 During the term of a lease, the Lessee Authority is authorized to conduct such surveillance activities and inspections as it considers necessary to verify that a leased aircraft is operated and maintained in accordance with the applicable standards of airworthiness, operating requirements, design-related operational requirements and associated requirements, and with the terms and conditions of the lease authorization.

11.2 On the request of the Lessor Authority and for reasonable cause, the Lessee Authority will

perform an inspection of the lessee operator or the leased aircraft, or
permit the Lessor Authority to enter the State of the Lessee Authority for the purpose of inspecting a lessee operator or a leased aircraft and will assist the Lessor Authority in the performance of the inspection.

12.0 Enforcement

12.1 Each Authority will notify the other Authority of any finding or act which affects the status of an aviation document issued by the other Authority in respect of a leased aircraft or the terms and conditions of a lease authorization.

12.2 Each Authority will make all reasonable efforts to secure evidence relating to any suspected contravention of requirements affecting the status of an aviation document issued by the other Authority or the terms and conditions of a lease authorization.

12.3 Nothing in this Memorandum will be interpreted so as to preclude the Lessor Authority from taking any enforcement action pursuant to the laws of its State in respect of the operation or maintenance of a leased aircraft.

13.0 Co-operation

13.1 Each Authority will ensure that the other Authority is kept informed of all applicable standards of airworthiness, operating requirements, design-related operational requirements and associated requirements of its State, and will consult the other Authority on any proposed changes thereto to the extent that they may affect the implementation of this Memorandum.

13.2 Each Authority will render such assistance as may reasonably be required by the other Authority in its carrying out of inspections, investigations, prosecutions and other functions in respect of a leased aircraft.

14.0 Prevailing Interpretation

14.1 In the case of conflicting interpretations as to the applicable standards of airworthiness, operating requirements, design-related operational requirements or associated requirements in respect of a leased aircraft,

the Authorities will jointly determine which State's requirements are applicable in the particular case; and
the interpretation of the Authority of that State will prevail.

15.0 Amendment

15.1 The Authorities will meet at such times as they may decide, for the purpose of jointly reviewing the Memorandum.

15.2 Any amendment to this Memorandum will, unless otherwise specified by the Authorities, take effect on the date on which the Authorities sign the amendment.

16.0 Termination

16.1 Either Authority may terminate this Memorandum after having given due upon notice in writing to the other Authority of its intention to terminate the Memorandum.

SIGNED At Ottawa, Ontario
this 23rd day of
September 1994.

Original Signed by Don Spruston

SIGNED At The Hague
this nineteenth day of|
July 1994.

Original Signed by Jan Willem Weck

______________________________

For the Minister of Transport
the Director General,
Aviation Regulation