Content last revised: 2025/09/15
223.03 Leasing Operations - General
An application from a Canadian air operator or manufacturer for the authorization referred to in subsection 203.03(2) of the Canadian Aviation Regulations permitting the operation of a dry leased aircraft by an operator who is not the registered owner shall include supporting information establishing that the operation meets the following requirements:
(amended 2025/09/15)
- (1) A Canadian Air Operator that Dry Leases a Canadian Aircraft from Another Canadian Air Operator
NSA-2025-004 (Effective 2025/09/15)- (a) the aircraft shall have a valid certificate of registration in the name of the lessor;)
- (b) the lessee shall be qualified to be the registered owner of a Canadian aircraft;
- (c) the aircraft shall be in the legal custody and control of the lessee, subject to any lease interchange conditions specified in the authorization in accordance with paragraph 203.05(b);
- (d) the aircraft shall not be made the subject of another lease during the term of authorization;
(amended 2025/09/15) - (e) the lessor and the lessee of the aircraft shall each hold a Canadian operator certificate;
- (f) the lessee shall be responsible for the maintenance of the aircraft in accordance with:
- (i) the applicable standards of airworthiness;
- (ii) the lessee’s maintenance control system required by section 406.35, 604.127 or 706.02 of the Canadian Aviation Regulations;
- (iii) a maintenance schedule for the aircraft approved by the Minister pursuant to subsection 605.86(2) of the Canadian Aviation Regulations; and
- (iv) any requirements set out in the authorization issued pursuant to subsection 203.03(2) of the Canadian Aviation Regulations;
- (g) all aircraft crew members shall be in the employ of the lessee; and
- (h) the Canadian lessee shall submit a duly completed Application for an Authorization to Operate an Aircraft dry leased from a Canadian Air Operator Lessor to a Canadian Air Operator Lessee (LF-1).
(amended 2025/09/15)
- (2)A Canadian Air Operator that Dry Leases a Canadian Aircraft to a Foreign Air Operator
NSA-2025-004 (Effective 2025/09/15)- (a) the aircraft shall have a valid certificate of registration in the name of the Canadian lessor;
- (b) the aircraft shall be in the legal custody and control of the foreign lessee, subject to any lease interchange conditions specified in the authorization in accordance with paragraph 203.05(b);
- (c) the aircraft shall not be made the subject of another lease during the term of the authorization;
- (d) the Canadian lessor shall hold a Canadian operator certificate issued in respect of the aircraft type that is being leased;
- (e) the foreign lessee shall be an entity incorporated or formed by or under the laws of the foreign contracting state;,
- (f) the foreign lessee shall hold an air operator certificate or equivalent document, issued by the foreign contracting state in respect of the aircraft type being leased;,
- (g) the foreign lessee shall operate the aircraft in a commercial air service consented to by Canada;
- (h) the foreign lessee's main operations base, during the term of the lease, will be located in the state of the lessee;
- (i) the Minister shall have received written consent to the proposed operation from the foreign Civil Aviation Authority;
- (j) the Minister shall have received from the foreign Civil Aviation Authority written authorization for Transport Canada Air Carrier Operations and Airworthiness Inspectors to conduct necessary inspections of personnel, aircraft maintenance facilities and/or documents as necessary;
- (k) the aircraft shall have a valid Canadian certificate of airworthiness;,
- (l) the aircraft shall continue to comply with its approved design, and will not undergo major modification or major repair without prior approval from the Minister;
- (m) the foreign lessee’s maintenance control system shall have procedures acceptable to the Minister that ensure that they may only operate the aircraft if:
- (i) all maintenance has been performed and recorded in accordance with Part V of the Canadian Aviation Regulations;
- (ii) a maintenance release has been signed in accordance with section 571.11 of the Canadian Aviation Regulations;
- (iii) the operational and emergency equipment necessary for the intended flight is serviceable;
- (iv) any unserviceability affecting airworthiness is recorded and rectified;
- (v) all maintenance schedule tasks are complete; and
- (vi) in accordance with section 605.84 of the Canadian Aviation Regulations, the aircraft meets the requirements of any applicable airworthiness directives;
- (n) the foreign lessee shall be, for the duration of the lease, responsible for the maintenance of the aircraft in accordance with:
- (i) a maintenance schedule approved by the Minister pursuant to subsection 605.86(2);
- (ii) the applicable standards of airworthiness; and
- (iii) any requirements set out in the authorization issued pursuant to subsection 203.03(2) of the Canadian Aviation Regulations;
- (o) all aircraft crew members shall be in the employ of the foreign lessee;
- (p) every person who acts as a flight crew member shall hold either a valid licence appropriate to the crew member's duties issued by Canada under Part IV, or a Canadian Foreign Licence Validation Certificate; and
- (q) the Canadian lessor shall submit a duly completed Application for an Authorization to dry lease a Canadian-registered aircraft to a Foreign Air Operator Lessee (LF-2).
NSA-2025-004 (Effective 2025/09/15)
- (3) A Canadian Air Operator that Dry Leases an Aircraft Registered in a Foreign State
NSA-2025-004 (Effective 2025/09/15)- (a) the aircraft shall be of a type and model designation for which an aircraft type design has been certified by the Minister, and shall comply with the relevant environmental and operational requirements;
- (b) the aircraft shall have a valid certificate of registration in the name of the foreign lessor and the lease shall not affect the certificate of registration;
- (c) the aircraft shall have a valid certificate of airworthiness issued in respect of the aircraft by the state of registration, and the lease shall not affect the certificate of airworthiness;
- (d) the aircraft shall not be made the subject of another lease during the term of the authorization;
- (e) the Canadian lessee shall hold an operator certificate issued in respect of the specific aircraft type and model designation to be leased, or has applied to the Minister in accordance with the Canadian Aviation Regulations to have the specific aircraft type and model designation added to their operator certificate;
- (f) all aircraft crew members shall be in the employ of the Canadian lessee;
- (g) the aircraft shall be in the legal custody and control of the Canadian lessee;
- (h) the Canadian lessee shall be, for the duration of the lease, responsible for the maintenance of the aircraft in accordance with:
- (i) the applicable standards of airworthiness;
- (ii) the Canadian lessee’s maintenance control system required by section 406.35, or 706.02 of the Canadian Aviation Regulations, and accepted by the aircraft’s State of Registry;
- (iii) a maintenance schedule for the aircraft approved by the aircraft’s State of Registry, and by the Minister pursuant to subsection 605.86(2) of the Canadian Aviation Regulations; and
- (iv) any requirements set out in the authorization issued pursuant to subsection 203.03(2) of the Canadian Aviation Regulations;
- (i) every flight crew member assigned to the aircraft by the Canadian lessee shall hold either a valid licence appropriate to the crew member's duties issued by the State of Registry of that aircraft, or a Canadian licence rendered valid by the State of Registry of that aircraft;)
- (j) the foreign civil aviation authority shall have signified their consent for this operation; and
- (k) the Canadian lessee shall submit a duly completed Application for an Authorization to dry lease a foreign-registered aircraft (LF-3).
(amended 2025/09/15
(4) A Canadian Aircraft from a Canadian Aircraft Manufacturer
NSA-2025-004 (Effective 2025/09/15)
- (a) the leasing operation shall be for the purpose of providing a Canadian registered aircraft to the foreign lessee pending the type certification of that aircraft type and model designation by the state of the lessee or for the purpose of product support;
- (b) the aircraft type and model designation shall be undergoing the process of airworthiness certification by the foreign state of the lessee;
- (c) the aircraft shall have a valid certificate of registration in the name of the Canadian lessor;
- (d) the aircraft shall be in the legal custody and control of the foreign lessee, subject to any lease interchange conditions specified in the authorization in accordance with paragraph 203.05(b),
- (e) the aircraft shall not be made the subject of another lease during the term of the authorization;
- (f) the Canadian lessor shall be the holder of an aircraft type certificate in respect of the type and model designation of the leased aircraft;
- (g) the foreign lessee shall be an entity incorporated or formed by or under the laws of a foreign contracting state;
- (h) the foreign lessee shall hold an air operator certificate or equivalent document, issued by the foreign contracting state in respect of the aircraft type being leased;
- (i) the foreign lessee shall operate the aircraft in a commercial air service consented to by Canada;
- (j) the aircraft shall have a valid certificate of airworthiness;
- (k) the foreign lessee’s maintenance control system shall have procedures acceptable to the Minister that ensure that they may only operate the aircraft if:
- (i) all maintenance has been performed in accordance with Part V of the Canadian Aviation Regulations;
- (ii) a maintenance release has been signed in accordance with section 571.11 of the Canadian Aviation Regulations;
- (iii) the operational and emergency equipment necessary for the intended flight is serviceable;
- (iv) any unserviceability affecting airworthiness is recorded and rectified;
- (v) all maintenance schedule tasks are complete; and
- (vi) in accordance with section 605.84 of the Canadian Aviation Regulations, the aircraft meets the requirements of any applicable airworthiness directives;
- (l) the foreign lessee shall be, for the duration of the lease, responsible for the maintenance of the aircraft in accordance with:
- (i) a maintenance schedule for the aircraft approved by the Minister pursuant to subsection 605.86(2) of the Canadian Aviation Regulations;
- (ii) the applicable standards of airworthiness; and
- (iii) any requirements set out in the authorization issued pursuant to subsection 203.03(2) of the Canadian Aviation Regulations;
- (m) the aircraft shall continue to comply with its approved design, and will not undergo major modification or major repair without prior approval from the Minister;
- (n) every person who acts as a flight crew member shall hold either a valid licence appropriate to the crew member's duties issued by Canada under Part IV of the Canadian Aviation Regulations, or a Canadian Foreign Licence Validation Certificate;
- (o) all aircraft crew members shall be in the employ of the foreign lessee;
- (p) the Minister shall have received written consent to the proposed operation from the foreign Civil Aviation Authority;
- (q) the Minister shall have received from the foreign Civil Aviation Authority written authorization for Transport Canada Air Carrier Operations and Airworthiness Inspectors to conduct necessary inspections of personnel, aircraft maintenance facilities and/or documents as necessary; and
- (r) the Canadian lessor shall submit a duly completed Application for an Authorization for a Canadian Manufacturer to dry lease a Canadian-registered aircraft to a Foreign Air Operator Lessee (LF-4).
NSA-2025-004 (Effective 2025/09/15)