evaluation of aircraft lease and interchange...

Islamic Republic of Afghanistan Civil Aviation Authority

EVALUATION OF AIRCRAFT

LEASE AND INTERCHANGE

AGREEMENTS

Afghanistan Civil Aviation Directive

(CAD)

CAD-AIR-032.1

Airworthiness

31 MAY 2016

Revision 1

H.E. Capt. Hamid Zaher

Director General

Civil Aviation Authority

Evaluation of Aircraft

Lease and Interchange

Agreements

Table of Contents

CAD-AIR-032.1 Revision 1 - 31 MAY 2016 of 32

Intentionally Left Blank

Table of Contents



Agreements


Table of Contents

0 Administration and Control ................................................................................... 9

0.1 Abbreviations ........................................................................................................... 9

0.2 Record of Revision ................................................................................................. 10

1 Purpose ................................................................................................................ 11

2 General ................................................................................................................. 13

2.1 Definitions .............................................................................................................. 13

2.2 Determining Operational Control of a Dry-Leased Aircraft ...................................... 13

2.3 Determining Operational Control of Wet-Leased Aircraft ........................................ 13

2.4 Other Factors in Determining Operational Control of Leased Aircraft ..................... 13

3 Interchange Agreements ..................................................................................... 15

4 ACAA Responsibilities ........................................................................................ 17

4.1 Determine Unit Responsibility ................................................................................ 17

4.2 Review the Lease ................................................................................................... 17

4.3 The Lessor’s Operator’s Manual ............................................................................ 17

4.4 The Lessee’s Operator’s Manual ............................................................................ 17

4.5 Aircraft Maintenance Records ................................................................................ 18

4.6 Aircraft Conformity Inspections ............................................................................... 18

4.7 ACAA must notify ................................................................................................... 18

5 Prerequisites and Coordination Requirements .................................................. 19

5.1 Prerequisites .......................................................................................................... 19

5.2 Coordination ........................................................................................................... 19

6 References, Forms and Job Aids ........................................................................ 21

6.1 References ............................................................................................................. 21

6.2 Forms ..................................................................................................................... 21

7 Procedures for Lease Agreements ..................................................................... 23

8 Procedures for Interchange Agreements ........................................................... 25

9 Task Outcomes .................................................................................................... 27

10 Future Activities ................................................................................................... 29

Appendix I NIL (No Item Listed) ................................................................................ 31



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Table of Contents



List of Tables



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List of Tables

No tables in this document.



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List of Figures



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List of Figures

No figures in this document.



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0 Administration and Control







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The following list contains key abbreviations used in this document, as well as others likely to

be in common use in the respective area.

0.1 Abbreviations

ACAA ............ Afghanistan Civil Aviation Authority

ACAR ............ Afghanistan Civil Aviation Regulations

AD ................. Airworthiness Directive

AIP ................ Aeronautical Information Publication

AN ................. Air Navigation

CAA .............. Civil Aviation Authority

CAR .............. Civil Aviation Regulation

ICAO ............. International Civil Aviation Organization

IS .................. Implementation Standard

MEL .............. Minimum Equipment List

NIL ................ No Item Listed



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0.2 Record of Revision

The table below provides a record of amendments.

Location Date Description Entered by

All 10 JAN 2015 Original Version

All 31 MAY 2016 Updated References


1 Purpose



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1 Purpose

This Afghanistan Civil Aviation Authority (ACAA) Directive contains regulatory and adminis-

trative procedures for the evaluation of aircraft lease/interchange agreements for Afghan

certified operators. Reference: ICAO Document 8335-AN/879 Chapter 10 and ACAR Part IS

9.2.3.3 and IS 9.2.3.4.

The present Directive provides information and guidance and serves as an acceptable

means of compliance with regulatory requirements.



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1 Purpose




2 General



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2 General

2.1 Definitions

Lease: Any agreement by a person (the lessor) to furnish an aircraft to another

person (lessee) to be used for compensation or hire purposes.

Dry Lease: Any agreement in which a lessor, (which could be an air carrier,

bank, or leasing company) leases an aircraft without flight crewmembers to an

air carrier (the lessee), and in which the lessee maintains operational control.

Wet Lease: Any agreement in which a lessor, (Afghan air carrier only), leases

an aircraft, with at least one pilot flight crewmember, to either an Afghan air car-

rier, foreign air carrier, or a foreign person (the lessee).

Damp Lease: When an aircraft is wet leased with only a partial crew.

Interchange Agreement: Any agreement between operators (Afghan and for-

eign) in which the operational control of an aircraft is transferred for short peri-

ods of time from one operator to another. With this type agreement, the latter

operator assumes responsibility for the operational control of the aircraft at the

time of transfer.

Operational Control: Operation of aircraft

Lessee: The party using the aircraft under the provisions of a lease

Lessor: The party furnishing the aircraft under a lease

2.2 Determining Operational Control of a Dry-Leased Aircraft

Normally, operational control of any dry-leased aircraft rests with the lessee. In most

dry lease agreements, the lessor is a bank of either a leasing or a holding company.

In neither case will the lessor have the operational expertise, the facilities, or the de-

sire to assume responsibility and liability for controlling the day-to-day operations of

the aircraft.

2.3 Determining Operational Control of Wet-Leased Aircraft

The fact that the Ministry of Transport and Civil Aviation characterizes a lease as a

wet lease does not necessarily make the lessor responsible for operational control.

When the ACAA determines who has operational control, the Flight Safety Director

must be advised by letter. The Department of Flight Safety must make this letter a

matter of record in the operator’s office file.

2.4 Other Factors in Determining Operational Control of Leased Aircraft

ACAR Parts IS 9 provides that the Afghan CAA shall determine if a person has op-

erational control if that person exercised authority and responsibility for a specified

number of operational functions. This could include scheduling flights and crew-

members, initiating flights, and terminating flights.

In cases where there is doubt or controversy over who exercises operational control,

the Legal Unit may consider additional factors, such as who is responsible for

maintenance, servicing, and crewmember training.



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2 General




3 Interchange Agreements



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An interchange agreement is a form of dry lease agreement. It allows an air carrier to dry

lease aircraft to another air carrier for short periods of time.

Occasionally, important details may be overlooked unless interchange conditions are closely

monitored. Equipment variances can be potentially dangerous unless effective training or

corrective action is taken before operations begin. For example, life rafts or an emergency

radio might be improperly stowed during over-water flights on aircraft that have no provisions

for their stowage, thus creating a hazardous condition in turbulent weather.



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4 ACAA Responsibilities



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4.1 Determine Unit Responsibility

Approval of the operations specifications is the responsibility of the Flight Safety

Department, assigned to the operator exercising operational control of the aircraft.

This determination must be made by reviewing the specific assignment of opera-

tional control listed on the lease/interchange agreement by the ACAA Flight Safety

Department.

4.2 Review the Lease

An aircraft lease/interchange agreement is reviewed to determine if all of the re-

sponsibilities of the lessor/lessee are described. The inspector must ensure that the

lease/interchange contains all effective dates and provisions required by regulation.

Those items not required by regulation must be reviewed to determine their applica-

bility and compatibility with the regulatory requirements.

4.3 The Lessor’s Operator’s Manual

The lessor’s manual must be reviewed for the following:

The continuous airworthiness maintenance program, for the aircraft, engines,

propellers (if applicable), and appliances

The maintenance reliability program, if applicable

A training program for the maintenance personnel on the aircraft

Fueling procedures for the aircraft

Provision for use of an approved Minimum Equipment List (MEL)

Provisions for leasing the aircraft to the lessee

4.4 The Lessee’s Operator’s Manual

The lessee’s manual must be reviewed for the following:

To determine if the manuals provide adequate procedures and guidance for in-

corporating leased aircraft into its operating system

Procedures for the use of the lessor’s continuous airworthiness maintenance

program, for the aircraft, engines, propellers (if applicable), and appliances

Procedures for the use of the maintenance reliability program, if applicable

Procedures in the maintenance training program that are adequate to provide

for configuration differences, if the aircraft is maintained under the lessor’s

maintenance program

Fueling procedures for the aircraft

Provisions for use of an approved MEL



Agreements



4.5 Aircraft Maintenance Records

The lessor will maintain the aircraft maintenance record and ensure that the items

required to be inspected, repaired, or overhauled are addressed in those records.

4.6 Aircraft Conformity Inspections

Aircraft conformity inspections are conducted to ensure that:

Differences between aircraft already in a lessee’s fleet and aircraft being leased

are noted. These differences must be addressed with:

Amendments to the lessee’s operations specifications

Revisions to the lessee’s maintenance manual

Configuration of the aircraft meets the regulatory requirements of the intended

Operation

4.7 ACAA must notify

The Authority of the State of the Lessor of its intention to issue a lease approval and

any condition(s) attached to the approval.


5 Prerequisites and Coordination

Requirements



Agreements

5 Prerequisites and Coordination Requirements

5.1 Prerequisites

Knowledge of the regulatory requirements of ACAR Part 9

Successful completion of Airworthiness Inspector’s Indoctrination Course for Gen-

eral Aviation and Air Carrier Inspections, or previous equivalent

5.2 Coordination

This task requires coordination among maintenance, avionics, and operations Flight

Safety Inspectors.



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5 Prerequisites and Coordination

Requirements




6 References, Forms and Job Aids



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6.1 References

Evaluate ACARs Part 5 Airworthiness and Afghan CARs Part IS 9 Air Operator Cer-

tification and Administration

6.2 Forms

ACAA Operations Specifications forms

Lease Agreement Checklist



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7 Procedures for Lease Agreements



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7.1 Determine if a Lease Agreement has occurred. Request a copy of the lease or lease

memorandum.

a) Determine the inspector’s responsibility. If more than one department is in-

volved, determine which Inspector will be responsible for approving the opera-

tions and maintenance portions of the operations specifications.

7.2 Review the Lease. Ensure that:

a) The lessor and lessee are properly identified on the lease

b) The lease is signed by the appropriate personnel in both the lessor’s and the

lessee’s organizations

c) All strikeovers, erasures, and corrections are initiated by both the lessor and the

lessee

d) The aircraft subject to the lease agreement are identified by aircraft make and

model, registration number, and serial number

e) The effective dates of the lease are identified

f) Operational control is specifically designated

g) Responsibilities for performing maintenance release are specifically designated

h) Responsibilities for ensuring AD compliance are specifically designated.

i) Responsibilities for keeping aircraft maintenance records are specifically desig-

nated

j) Maintenance programs task completion (lessee’s or lessor’s) that will be utilized

are specifically designated

7.3 Review the Lessee’s Manuals. Ensure that the manual includes the following:

a) Procedures adequate to incorporate the leased aircraft into his operating sys-

tem, i.e., aircraft acceptance checks, etc.

b) Provisions in the maintenance training program to account for any differences in

the configuration of the leased aircraft from the existing fleet

c) A program that is adequate to provide for configuration differences if the aircraft

is to be maintained under the lessee’s maintenance program

d) A Minimum Equipment List (MEL) that is applicable to the leased aircraft

7.4 Review the Aircraft Maintenance Records

7.5 Perform an Aircraft Conformity Inspection.

After performing the inspection, review the results to ensure that the differences be-

tween the leased aircraft and the aircraft already in operation are identified and will

be addressed in operation specifications and the lessee’s maintenance manual.



Agreements





8 Procedures for Interchange

Agreements



Agreements

8 Procedures for Interchange Agreements

8.1 Review the Agreement. Ensure that:

a) The operator submits a written agreement or memorandum of the interchange

agreement

b) The aircraft subject to the interchange agreement are identified by aircraft make

and model, registration number, and serial number

c) The effective dates/times of the interchange are identified

d) Operational control is specifically designated

e) Responsibilities for performing maintenance are specifically designated

f) Responsibilities for keeping aircraft maintenance records are specifically desig-

nated

g) The maintenance program to be utilized is designated

h) All strikeovers, erasures, and corrections are initiated by both parties to the

agreement

i) The interchange agreement or memorandum provides for all differences in air-

craft configuration due to the operating or maintenance requirements of both

operators

8.2 Review the Lessor’s Operator’s Manual. Review the following:

a) The continuous airworthiness maintenance program, for the aircraft, engines,

propellers (if applicable), and appliances

b) The maintenance reliability program, if applicable

c) A training program for the maintenance personnel on the aircraft

d) Fueling procedures for the aircraft

e) Provision for use of an approved MEL

f) Provisions for leasing the aircraft to the lessee



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8 Procedures for Interchange

Agreements


8.3 Review the Lessee’s Operator’s Manual. Review for the following:

a) To determine if the manuals provide adequate procedures and guidance for in-

corporating leased aircraft into its operating system

b) Procedures for the use of the lessor’s continuous airworthiness maintenance

program, for the aircraft, engines, propellers (if applicable), and appliances

c) Procedures for the use of the maintenance reliability program, if applicable

d) Procedures in the maintenance training program that are adequate to provide

for configuration differences, if the aircraft is maintained under the lessor’s

maintenance program

e) Fueling procedures for the aircraft

f) Provisions for use of an approved MEL

8.4 Analyze the Findings.

Evaluate all deficiencies to determine what corrections will be required.

8.5 Schedule a Meeting.

If deficiencies are discovered during the evaluation, advise the operator/applicant.

Schedule a meeting with the operator/applicant to discuss the problem areas, if

necessary.


9 Task Outcomes



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9 Task Outcomes

Completion of this task will result in one of the following:

a) Approval of the agreement by accomplishing the following:

- Sending a letter to the operator indicating acceptance of the agreement

- Approval of operations specifications in accordance with ACAR Part 9.

b) Disapproval of the agreement by sending a letter to the operator/applicant list-

ing the reasons for di00sapproval

Document Task: File all supporting paperwork in the operator/applicant’s office file.



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9 Task Outcomes




10 Future Activities



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10 Future Activities

Normal surveillance



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Appendix I




Appendix I



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Appendix I NIL (No Item Listed)

No appendices in this document.



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Appendix I


End of Document

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