1. Leased aircraft - Safety Oversight
Agreements between Authorities

2. Agreements Between Authorities
Table of Contents
1- The Safety Aspects and Implications of leasing Arrangements
2- The Legal Instrument of Article 83bis of the Chicago Convention
3- The Prerequisites to the transfer of duties and functions
4- The Bilateral agreement under Article 83bis

3. Preamble Source documents
ICAO Secretariat Guidelines on the implementation of Article 83bis of the Chicago Convention
Manual on Procedures for Operations, Inspection, Certification and Continued Surveillance (Doc. 8335)
The Airworthiness Manual (Doc. 9760)
The Circular 295 LE/2 Guidance on the implementation of article 83 bis of the Convention on International Civil Aviation ( dated February 2003)

4. 1- The Safety Aspects and Implications of leasing Arrangements
Introduction
The leasing of aircraft is becoming a common practice. In order to optimise their operations and assets, companies and operators tend to enter into complex agreements that may involve many companies and many Authorities which supervise them:
Aircraft registered in country 1
Crew trained in country 2 and holding a license from country 3
Maintenance tasks carried out in countries 4 and 5
Operator based in country (AOC)… 6

5. 1- The Safety Aspects and Implications of leasing Arrangements
Introduction
Before any lease is authorised by the relevant Authorities, the leasing documents must be checked by the appropriate departments of all the intervening parties
legal
registry
financial
safety oversight
Responsibilities for safety oversight must be clarified including the possibility for the Authorities of the concerned countries to enter into the necessary agreements (where the Aviation Law may be modified)

6. 1- The Safety Aspects and Implications of leasing Arrangements
Introduction
Any leasing agreement that does not offer full clarity should not be authorised
The Aviation Law must empower the Aviation Authority to approve or reject a lease agreement

7. 1- The Safety Aspects and Implications of leasing Arrangements
Introduction
Unless suitable arrangements are made between States involved, a lease may create complex legal, safety, enforcement and practical problems for both the State of Registry of the aircraft and/or the State of the Operator because of possible uncertainty concerning which party is responsible for the safe operation and airworthiness of the aircraft and which State’s regulations are applicable.

8. 1- The Safety Aspects and Implications of leasing Arrangements
Introduction
When a registered aircraft of its own state is leased outside, the State of Registry will have difficulties to conduct safety oversight efficiently for several reasons :
Distances between the States
Resources (inspectors, budget...)
Number of aircraft leased outside
Number of concerned countries

9. 1- The Safety Aspects and Implications of leasing Arrangements
Introduction
ICAO has become increasingly aware of the problems and recognised the general desire of Contracting States for a provision that would permit the transfer of certain functions and duties from the State of Registry to the State of the Operator forthe lease, charter, interchange or similar arrangements with respect to such aircraft.
Legal committee (1978)
Chicago convention to be amended
Provisional solutions : notes in Annexes 1, 6, 8

10. 1- The Safety Aspects and Implications of leasing Arrangements
23rd Assembly
Convention of Chicago : New article was adopted
Article 83bis
Purpose :Transfer of duties and functions from State
of Registry to State of Operator
Adopted on October 6, 1980
In force on June 20, 1997 (after ratification
by 98 States)

11. 1- The Safety Aspects and Implications of leasing Arrangements
At the same time, Resolution A recognises :
State of registry unable to fulfil its responsibilities when an aircraft is leased (particularly dry lease) to an operator located in another state
In that case, Council recommends : Agreement between State of registry and state of operator to discharge adequately the functions of supervision allocated to it by the Convention of Chicago; (Pending the coming into force of the Article 83bis which permits to transfer its responsibilities)

12. 1- The Safety Aspects and Implications of leasing Arrangements
Pending the coming into force of the Article 83bis (in 1997) together with the agreements signed by both parties
A bilateral agreement should be signed by both states :
To define the responsibilities and the obligations of each party
A Memorandum Of Understanding (MOU) can be signed as basis of bilateral agreement

13. 1- The Safety Aspects and Implications of leasing Arrangements
Example : MOU between Country A and Country B
In accordance with the model of MOU:
Doc Volume II,Part B, Chapter 10”International lease arrangements”
Based on the existence of bilateral agreements
on airworthiness
xxxxxxxxx xxxxxxx

14. 1- The Safety Aspects and Implications of leasing Arrangements
Example : MOU between Country A and Country B
The main aspects considered in the document are
1 -Definitions
2 - Scope of application
3 - General provisions
4 - Lease authorization
5 - Modifications and repairs
6 - Continuing airworthiness
7 - Maintenance
8 - Service difficulty reporting
9 - Flight authorization
10 - Operations
11 - Surveillance and inspection
xxxxxxxxx xxxxxxx

15. 1- The Safety Aspects and Implications of leasing Arrangements
Example : MOU between Country A and Country B (different from an Article 83 bis agreement)
Analysis of some points of that document

16. 1- The Safety Aspects and Implications of leasing Arrangements
Example of MOU : A/B
Preamble
(a) 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);
(b) the State of each Authority has signed with the State of the other Authority a Bilateral Airworthiness Agreement (for example recognising of the repair station..);
(c) 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;

17. 1- The Safety Aspects and Implications of leasing Arrangements
Example of MOU : A/B
(d) 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;
(e) 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.

18. 1- The Safety Aspects and Implications of leasing Arrangements
Example of MOU : A/B
2.0 - Scope of Application
2.1 This Memorandum will apply only to a lease of an aircraft
(a) from an operator of the State of one Authority to an operator of the State of the other Authority,
(b) which is operated by the lessee,
(c) which is registered in the State of one of the Authorities, and
(d) which is authorized for commercial operations.

19. 1- The Safety Aspects and Implications of leasing Arrangements
Example of MOU : A/B
5.0 - Modifications 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 (CRS), in accordance with the Bilateral Airworthiness Agreement, of modification or repairs to that aircraft.

20. 1- The Safety Aspects and Implications of leasing Arrangements
Example of MOU : A/B
5.0 - Modifications and repairs (continued)
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 (CRS) of modification or repairs to an aircraft where that performance and certification has been authorized by the Lessee Authority.

21. 1- The Safety Aspects and Implications of leasing Arrangements
Example of MOU : A/B
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 Bilateral Airworthiness Agreement between the States of the Authorities.

22. 1- The Safety Aspects and Implications of leasing Arrangements
Example of MOU : A/B
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.

23. 1- The Safety Aspects and Implications of leasing Arrangements
Example of MOU : A/B
7.0 - Maintenance (continued)
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 Bilateral Airworthiness Agreement, 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.

24. 1- The Safety Aspects and Implications of leasing Arrangements
Example of MOU : A/B
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
a) the flight manual approved by the Lessor Authority, and
b) the operations manual approved or accepted by it (the lessee Authority)

25. 1- The Safety Aspects and Implications of leasing Arrangements
Example of MOU : A/B
Surveillance and inspection
11.1 During the term of a lease, the Lessee Authority will 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.

26. 1- The Safety Aspects and Implications of leasing Arrangements
Example of MOU: A/B
Surveillance and inspection (continued)
11.2 On the request of the Lessor Authority and for reasonable cause, the Lessee Authority will
(a) perform an inspection of the lessee operator on the leased aircraft, and/or
(b) 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.

27. 1- The Safety Aspects and Implications of leasing Arrangements
Remark
The existence of bilateral agreement is a practical convenience but does not affect the Chicago Convention
The Chicago Convention will be affected only when:
Article 83bis comes into force
Transfer of certain functions and duties

28. 2-The Legal Instrument of Article 83 bis of the Chicago Convention
Article 83 bis: Transfer of certain functions and duties
a) Notwithstanding the provisions of Articles 12, 30, 31 and 32(a) when an aircraft registered in a contracting State is operated pursuant to an agreement for lease, charter or interchange of the aircraft or any similar arrangement by an operator who has its principal place of business, or if it has no such place of business , his permanent residence in another contracting State, the State of registry may, by agreement with such other Sate, transfer to it all or part of its functions and duties as State of registry in respect of that aircraft under Article 12, 31, 31 and 32a).The State of registry will be relieved of responsibility in respect of the functions and duties transferred

29. 2-The Legal Instrument of Article 83 bis of the Chicago Convention
Article 83 bis: Transfer of certain functions and duties
b) The transfer shall not have effect in respect of other contracting States before either the agreement between States in which it is embodied has been registered with the Council and made public pursuant to Article 83 or the existence and scope of the agreement have been directly communicated to the authorities of the other contracting State or States concerned by a State party to the agreement
c) The provisions of paragraphs (a) and (b) above shall be applicable to cases covered by article 77 (Joint operating organisations permitted)

30. 2-The Legal Instrument of Article 83 bis of the Chicago Convention
The Convention has therefore been amended in order to relieve the State of Registry of its responsibility with respect to :
Article 12: Rules of the air
Article 30: Radio licensing
Article 31: Certificate of airworthiness
Article 32 (a): Licensing
Note : All or part of the duties and functions may
be transferred

31. 2-The Legal Instrument of Article 83 bis of the Chicago Convention
Types of commercial transaction applicable
Dry lease
Wet lease when aircraft is operated under the Air Operator Certificate (AOC) of the lessee (very rare) Cambodian examples!

32. 2-The Legal Instrument of Article 83 bis of the Chicago Convention
Functions and duties which may be transferred with respect of a dry leased aircraft
Annex 1: Issue and validation of licenses
Annex 2: Rules of the air
Annex 6: Operation of aircraft
Maintenance
Operating Performance Limitations
Annex 8: Airworthiness of aircraft
Continued airworthiness
Temporary loss of airworthiness
Aircraft limitations and information

33. 2-The Legal Instrument of Article 83 bis of the Chicago Convention
Transferred responsibilities (part or all of the duties included in the Annexes 1, 6 and 8)
Mandatory continuing airworthiness
Operation of an aircraft in compliance with its AFM
Operators maintenance responsibility (Approval of the Operator Maintenance Control Manual)
Maintenance Manual Approval, records
Continuing airworthiness information
Modifications and repairs (where approved by state of manufacturer)
Approval of maintenance organisation
Renewal of the Certificate of Airworthiness
Validation of the crew licences

34. 2-The Legal Instrument of Article 83 bis of the Chicago Convention
Conditions to transfer duties and functions
Legislation of the State of Registry must enable it to divest themselves of the functions and duties which are the object of the agreement
State of Operator will ensure that its legislation will apply to a foreign-registered aircraft subject to a transfer agreement.
The article 83’s bis principle should have been entered into both legislation

35. 2-The Legal Instrument of Article 83 bis of the Chicago Convention
Conditions to transfer duties and functions
Bilateral Agreement where functions and duties transferred have to be mentioned
Note: in absence of such mention, they are deemed to remain with the S of R
The aircraft concerned should be clearly identified (Aircraft type and Registration number)
Duration of agreement to be the same as the duration of lease arrangement

36. 2-The Legal Instrument of Article 83 bis of the Chicago Convention
Recognition of the authority of the State of Operator
State other than States parties to the bilateral agreement
Two conditions:
Third-state must have ratified Article 83bis
They have been officially informed of the transfer
Two options for information (done by S of R)
Registration of their agreement with the Council of ICAO, and the Council then formally informed other States that are parties of Article 83bis (Article 83)
Direct communication (in the case of short-term such direct communication arrangement could save time)

37. 2-The Legal Instrument of Article 83 bis of the Chicago Convention
Recognition of the authority of the State of Operator by another State other than States parties to the bilateral agreement is through:
the carriage of a certified true copy of the transfer agreement and the AOC
In case of non recognition by a State on the authority of the S of O, when entering its airspace, the certificates and licenses of the S of the O must be validated by the S of R

38. 4- The Bilateral Agreement under Article 83bis
Record of 83bis Bilateral Agreement
Reg. No.4629
Title of the Agreement and its Subject Agreement for the Transfer of Operational and Technical Surveillance Duties from the State of Registry to the State of Operator
xxxxxxxxx xxxxxxx

39. 4- The Bilateral Agreement under Article 83bis
Record of 83bis Bilateral Agreement
Reg. No (cont ’d)
Signatories and Contracting Parties (* = registering party)
*Iceland
Italy
Place
and Date of Signature
(unspecified) 14/10/02
Date of Entry into Force
14/10/02
Duration
15/10/03
Language(s)
English
Date of Registration
19/11/02
xxxxxxxxx xxxxxxx

40. 2-The Legal Instrument of Article 83 bis of the Chicago Convention
Record of 83bis Bilateral Agreement
Reg. No (cont ’d)
Aircraft Affected by this Agreement
Aircraft Type Registration ID Serial No From Date
Boeing TF-SUN /10/03
* ICAO Annexes Affected by this Agreement
Annex No Title of Annex
1 Personnel Licensing
2 Rules of the Air
6 Operation of aircraft
8 Airworthiness of Aircraft
xxxxxxxxx xxxxxxx

41. 2-The Legal Instrument of Article 83 bis of the Chicago Convention
Non-recognition of the authority of State of Operator
State is not party to the bilateral agreement or
States which have not been duly informed about such a bilateral agreement

42. 2-The Legal Instrument of Article 83 bis of the Chicago Convention
Information about bilateral agreement
States have to be duly informed of the authorities in charge of inspections
The best way is that a certified true copy is carried on board during the period of the transfer agreement together with a certified true copy of the Air Operator Certificate.

43. 3-The prerequisites to the transfer of duties and functions
Transfer to the State of Operator is feasible when:
Article 83 bis been ratified
The State of Registry “trust” the State of Operator’s capability to meet ICAO Standard And Recommended Practices (SARPs) where generally an airworthiness bilateral agreement has already been signed or through USOAP or IASA reports and any other information (SAFA)
Transfer all or part of duties and functions depending of the USOAP audits results
Dual responsibility must be avoided

44. 4- The Bilateral Agreement under Article 83bis
Scope of 83bis Bilateral Agreement
The following items should be included
Types of aircraft delegated and Operator identification
Duration of agreement
Schedule of aircraft (by type, registration and serial number)
Term of leasing arrangement (where applicable)
Details of transferred responsibilities
Flight crew licenses
Rules of the Air
Operations and Airworthiness
* Attachment 1: List of aircraft affected by the agreement
* Attachment 2: Detailed sharing of responsibilities between States
xxxxxxxxx xxxxxxx

45. 4- The Bilateral Agreement under Article 83bis
Respective responsibilities of each party to an 83bis Bilateral Agreement: Annex 2 - Rules of the air
Article – 12: Rules of the air: Each contracting State shall ensure that every aircraft flying over or manoeuvring within its territory and that every aircraft carrying its nationality mark, wherever such aircraft may be, shall comply with the rules and regulations relating to the flight manoeuvre of aircraft there in force
The S of O will endorse this responsibilities on behalf of the S of R (much more convenient in this type of situation)

46. 4- The Bilateral Agreement under Article 83bis
Respective responsibilities of each party to an 83bis Bilateral Agreement: Annex 2 - Rules of the air
Annex 2: the rules of the air specified in the Annex 2 shall apply .. to the extend that they do not conflict with the rules published by the State having jurisdiction over the territory over flown.

47. 4- The Bilateral Agreement under Article 83bis
Table of contents
- Applicability of the rules of the air
- General rules : Protection of persons and property, Avoidance of collision, Flight plans, Signals, Time, ATS, Unlawful interference, Interception, VMC visibility
- Visual flight rules
- Instrumental flight rules
- Appendix: Signals, Interception of civil aircraft, Table of cruising levels, Unmanned free balloons
- Attachment: Interception of civil aircraft and unlawful interference
Respective responsibilities of each party to an bis Bilateral Agreement:
Annex 2 - Rules of the air

48. 4- The Bilateral Agreement under Article 83bis
Respective responsibilities of each party to an 83bis Bilateral Agreement: Annex 1 - Personnel licensing
Article 30: radio licence: the S of R must issue a radio licence to it aircraft, and the crew using these radio apparatus must be appropriately licensed by the S of R
Article 32 a): the pilot of every aircraft and the other members of the operating crew of every aircraft engaged in international navigation shall be provided with certificates of competencies and licences issued or rendered valid by the State in which the aircraft is registered

49. 4- The Bilateral Agreement under Article 83bis
Respective responsibilities of each party to an 83bis Bilateral Agreement: Annex 1 – Personnel Licensing
For both articles (30 & 32a) the S of O could take the responsibilities (all or part of) on behalf the S of R :in this case it will permit the S of R not to validate all the various licences because due to the transfer, the S of R has no more responsibilities in these areas)

50. 4- The Bilateral Agreement under Article 83bis
Respective responsibilities of each party to an 83bis Bilateral Agreement: Article 31 - Certificate of airworthiness
All the following items come from the Annexes 6 and 8 and are normally under the responsibility of the State of Registry, an article 83bis agreement allows the State of Registry to transfer to the State of Operator all or part of these items

51. 4- The Bilateral Agreement under Article 83bis
Respective responsibilities of each party to an 83bis Bilateral Agreement -Airworthiness
Operation of aircraft in conformity with its Certificate of Airworthiness: the S of R shall take precautions to ensure that the general level of safety imposed by these provisions is maintained under all expected operating conditions (Annex 6:chapter 5.2.4)
State of Registry
State of Operator
Undertakes the S of R responsibility as defined in Chapter 5.2 of Annex 6 part I (aeroplane performance operating limitations)

52. 4- The Bilateral Agreement under Article 83bis
Respective responsibilities of each party to an 83bis Bilateral Agreement - Airworthiness
Operator maintenance responsibilities Annex 6 Part I para 8-2 the S of R must approve the operator’s maintenance control manual
State of Registry
State of Operator
The S of O Approval is acceptable for the S of R, it transfers its responsibilities and even may not want to have a copy of the Operator’s Maintenance control manual
Approves operator’s maintenance control manual

53. 4- The Bilateral Agreement under Article 83bis
Respective responsibilities of each party to an 83bis Bilateral Agreement Airworthiness
Annex 6 Part I para 8-6 the S of R must approve the modifications and repairs manual
State of Registry
State of Operator
The S of R may transfer this responsibility
Approves the modifications and repair

54. 4- The Bilateral Agreement under Article 83bis
Respective responsibilities of each party to an 83bis Bilateral Agreement Airworthiness
Annex 6 Part I par. 8-3 the S of R must approve the aircraft maintenance programme
State of Registry
State of Operator
The S of R may transfer this responsibility
Approves this maintenance programme

55. 4- The Bilateral Agreement under Article 83bis
Respective responsibilities of each party to an 83bis Bilateral Agreement - Airworthiness
Maintenance records Annex 6, Part I para 8-4
State of Registry
State of Operator
Will inspect maintenance records (for example when renewing C of A)
Ensures that records are kept in accordance with Annex 6 chapter 8.4

56. 4- The Bilateral Agreement under Article 83bis
Respective responsibilities of each party to an 83bis Bilateral Agreement - Airworthiness
Continuing Airworthiness information Annex 6, Part I par. 8-5 and Annex 8 Part II par
Annex 6 part I par 8.5.1: the operator for aeroplane more than 5.7t.. shall transmit info on faults, malfunctions, defects and other occurrences that cause or might cause adverse effects on the continuous airworthiness of the aircraft to the organisation responsible for the type design
The S of R shall ensure that such a reporting system exists (see Annex 8 Part II par 4.3.5) it could be difficult for it (especially when the aircraft is operated far from the country so the SoR could transfer this duty)

57. 4- The Bilateral Agreement under Article 83bis
Respective responsibilities of each party to an 83bis Bilateral Agreement - Airworthiness
Continuing Airworthiness information Annex 6, Part I para 8-5
8.5.2: the operator of an aeroplane more than 5,7 t, shall obtain continuing airworthiness information from the type design organisation and shall implement resulting actions considered as necessary in accordance with a procedure acceptable by the State of Registry, again this situation could be difficult to manage for the S of R because the Operator is controlled by the S of O In this case the S of R could transfer this responsibility to the S of O

58. 4- The Bilateral Agreement under Article 83bis
Respective responsibilities of each party to an 83bis Bilateral Agreement - Airworthiness
Continuing Airworthiness information Annex 6, Part I par. 8-5 and Annex 8 Part II par
State of Registry
State of Operator
Will advise S of O of its requirements (type of reporting system) and will transfer its responsibilities
Ensures that those requirements are compiled in MCM and will assume the S of R responsibilities

59. 4- The Bilateral Agreement under Article 83bis
Respective responsibilities of each party to an 83bis Bilateral Agreement - Airworthiness
Continuing Airworthiness determination Annex 8 Part II par. 4.2
State of Registry
State of Operator
Develop continuing airworthiness requirements and provide the S of O and the operator
Ensures that those requirements are complied with and will assume the S of R responsibilities (par a) and b) )

60. 4- The Bilateral Agreement under Article 83bis
Respective responsibilities of each party to an 83bis Bilateral Agreement - Airworthiness
Approved maintenance organisation Annex 6, Part I, para 8-7 (see also the repair station must be accepted by the S of R)
State of Registry
State of Operator
Must approve the maintenance organisation under Annex 6 arrangements, ( including line maintenance arrangements)
Must approve the Maintenance Organisation's procedures manual
It may transfer its responsibilities (it will not approve the maintenance organisation)

61. Dry lease – Cross-border States’ responsibilities
4- The Bilateral Agreement under Article 83bis
Dry lease – Cross-border States’ responsibilities
AIRCRAFT
FLIGHT CREW
CABIN CREW
TECHNICAL
AUTHORIZATION
COMMERCIAL
Certificate of
Airworthiness (CofA)
Validation of
licences
Maintenance
arrangements
Recruitment
& licensing
& training
AOC issuance
Commercial
permit issuance
LESSOR
State of registry
State of the operator
LESSEE

62. 4- The Bilateral Agreement under Article 83bis
Wet lease – Cross-border States’ responsibilities
AIRCRAFT
FLIGHT CREW
CABIN CREW
TECHNICAL
AUTHORIZATION
COMMERCIAL
CofA & maintenance
arrangements
Recruitment and
issuance of licences
Some maintenance
May give training
May include
a reference
in its AOC
Commercial
permit issuance
LESSOR
State of registry
State of the operator 2
LESSEE
State of the operator 1
training
AOC issuance

63. 4- The Bilateral Agreement under Article 83bis
Damp lease – Cross-border States’ responsibilities
LESSOR
LESSEE
CASE 1
State of registry
State of the operator 2
State of the operator 1
AIRCRAFT
CofA & maintenance
arrangements
FLIGHT CREW
Recruitment and
issuance of licences
CABIN CREW
Training
Recruitment
TECHNICAL
AUTHORIZATION
AOC issuance
COMMERCIAL
AUTHORIZATION
Commercial
permit issuance

64. 4- The Bilateral Agreement under Article 83bis
Damp lease – Cross-border States’ responsibilities
AIRCRAFT
FLIGHT CREW
CABIN CREW
TECHNICAL
AUTHORIZATION
COMMERCIAL
CofA & maintenance
arrangements
Validation
of licences
Recruitment
and training
AOC issuance
Commercial
permit issuance
LESSOR
State of registry
State of the operator 2
LESSEE
State of the operator 1
CASE 2

65. 4- The Bilateral Agreement under Article 83bis
Dry lease – Cross-border States’ responsibilities
LESSOR
State of registry
State of the operator
LESSEE
Article
83 bis
Transfer
AIRCRAFT
Validation certificate
of airworthiness
Maintenance
arrangements
FLIGHT CREW
Validation
of licences
Recruitment
and training
CABIN CREW
Recruitment
and training
TECHNICAL
AUTHORIZATION
AOC issuance
COMMERCIAL
AUTHORIZATION
Commercial
permit issuance

66. 4- The Bilateral Agreement under Article 83bis
Wet lease – Cross-border States’ responsibilities
LESSOR
LESSEE
Article
83 bis
State of registry
State of the operator 2
State of the operator 1
Case very rare
Transfer
AIRCRAFT
Certificate of
Airworthiness
Maintenance
arrangements
FLIGHT CREW
Recruitment and
issuance of licences
Licences validation
and training
CABIN CREW
Recruitment
Training
TECHNICAL
AUTHORIZATION
AOC issuance
May include
a reference
in its AOC
COMMERCIAL
AUTHORIZATION
Commercial
permit issuance

67. 4- The Bilateral Agreement under Article 83bis
Example : CAA of VIETNAM/DCA of SEYCHELLES
Before Article 83bis becoming effective
June 6, 1996: signed a letter of agreement on the operation of 10 leased A 320s Bermudian registered and operate by Vietnam Airlines
After entry into force of the Article 83bis
September 23, 1999: signed a letter of agreement on the application of Article 83bis to the operation of 3 Seychelles- registered leased aircraft

68. 4- The Bilateral Agreement under Article 83bis
Example : CAA of VIETNAM/DCA of SEYCHELLES
Responsibilities transferred from Seychelles to Vietnam
Supervision of operations
Supervision of maintenance

69. 4- The Bilateral Agreement under Article 83bis
Example : CAA of VIETNAM/DCA of SEYCHELLES
Retained by Seychelles
Operated in compliance with Vietnam regulations except some items on:
Notification of accident or incident; approval of modifications and repairs; compliance with ADs; engine, equipment and airframe maintenance; maintenance schedule deviations; compliance with AFM; renewal of C of A; approval of controlling maintenance organisation; approval of MEL; deviation from MEL; ETOPS; RVSM; MNPS; Crew licenses and competencies with respect to non-Vietnamese national.

70. 4- The Bilateral Agreement under Article 83bis
Example : CAA of VIETNAM / DCA of SEYCHELLES
Letter of Agreement based of the fact:
DCA Seychelles and CAA Vietnam have ratified Article 83bis
CAA Vietnam has promulgated regulations on aircraft operations and maintenance (SARPs requirements are met)
CAA Vietnam: capability of ensuring application of aviation safety regulations
Vietnam Airlines: capability of safely and efficiently operating and maintaining aircraft through technical agreements

71. 4- The Bilateral Agreement under Article 83bis
ARTICLE 83bis implementation
Article 83bis has recently come into effect (today 130 States have ratified it)
32 agreements under article 83bis have been signed and registered at ICAO (1 March 2004)
Article 83bis implementation raises some new questions that are not yet answered (how to renew a foreign C of A?)
All countries have not yet adopted it into their regulations

72. 4- The Bilateral Agreement under Article 83bis
ARTICLE 83bis implementation
Article 83bis has already resulted in several countries strengthening their policy for delegating to other Authorities
Some countries already impose additional controls or checks before delegating their functions and/or responsibilities to other countries (Bermuda, France, Ireland,…)
Most countries are defining their implementation policy ( USA, …)

73. 4- The Bilateral Agreement under Article 83bis
GENERAL CONCLUSIONS
Each leasing operations must be scrutinized with extreme care
Consequences of each contractual clause on safety oversight must be studied (legal aspects!)
An Authority shall not hesitate to ask complementary information and reject any transaction that does not offer full warranty

74. GLOSSARY MEL: Minimum equipment List
MME: Maintenance Management Exposition
MoU: Memorandum of Understanding
PIRGs: Planning and Implementation
Regional Groups
RNP: Required Navigation Performance
RVSM: Reduction of Vertical Separation
Minimum
SB: Service Bulletin
S of O: State of Operator
S of R: State of Registry
SRM: Structure Repair Manual
A/C: Aircraft
AD: Airworthiness Directive
AFM: Airplane Flight Manual
AOC: Air Operator Certificate
AOM: Airline operations Manual
CAA: Civil Aviation Authority
C of A: Certificate of Airworthiness
DCA: Director of Civil Aviation
DER: Designated Engineering Representative
ECAC: European Civil Aviation Conference
ETOPS: Extended range for Twin engined aircraft OPerationS
MCM: Maintenance Control Manual

75. QUESTIONS
End of module IV