Canadian Aviation Regulations (SOR/96-433)

• 203.04 (1) No person shall operate a leased aircraft if one of the lessor and the lessee of the aircraft is not a Canadian, unless the Minister and the civil aviation authority of the state of the lessor or the lessee have consented to such operation.

• (2) No person shall operate an aircraft under the circumstances referred to in subsection (1) in a third state, other than Canada and the state of the lessor or the lessee, except in accordance with the laws of the third state.

203.05 The certificate of registration of a leased Canadian aircraft operated pursuant to section 203.03 remains valid notwithstanding any change in the legal custody and control of the aircraft that takes place

• (a) at the commencement or termination of the lease; and

• (b) where the Minister has issued an authorization pursuant to subsection 203.03(2), at any other time during the term of the lease that is specified in the authorization.

• 203.06 (1) Where an authorization has been issued pursuant to subsection 203.03(2) in respect of a Canadian aircraft, the registered owner of the aircraft shall, immediately on receipt of the authorization, forward to the lessee all airworthiness directives that apply to the aircraft.

• (2) Where an authorization has been issued pursuant to subsection 203.03(2) in respect of an aircraft registered in a foreign state, the Canadian lessee shall ensure that the aircraft conforms with all applicable airworthiness directives.

• 203.07 (1) No Canadian air operator shall, pursuant to section 203.03, operate a number of leased aircraft registered in a foreign state that exceeds 25 per cent of the total number of aircraft registered to that Canadian air operator, rounded to the next highest whole number.

• (2) No Canadian air operator shall, pursuant to section 203.03, lease to foreign air operators a number of aircraft that exceeds 25 per cent of the total number of Canadian aircraft registered to that Canadian air operator, rounded to the next highest whole number.

203.08 No authorization shall be issued to a Canadian air operator pursuant to subsection 203.03(2) with respect to the operation of an aircraft registered in a foreign state that would result in

• (a) the Canadian air operator being issued with one or more such authorizations in respect of aircraft registered in a foreign state for 24 months or more during any period of 30 consecutive months; or

• (b) the aircraft being the subject of one or more such authorizations issued to a Canadian air operator for 24 months or more during any period of 30 consecutive months.

203.09 A Canadian air operator that has been issued with an authorization by the Minister pursuant to subsection 203.03(2) shall, within seven days after the day on which the authorization was issued, submit to the Minister a signed copy of the lease.