ICAO Definitions relating to Aircraft Leasing

The following definitions have been taken from ICAO Document 8335 (Manual of Procedures for Operations Inspection, Certification and Continued Surveillance) and Regulation (EC) No. 1008/2008 (Common rules for the operation of air services in the Community).

Lease

“… contractual arrangement whereby a properly licensed air operator gains commercial control of an entire aircraft without transfer of ownership”. (ICAO Doc 8335).

Lessor

“… the party from which the aircraft is leased”. (ICAO Doc 8335).

Lessee

“… the party to which the aircraft is leased”. (ICAO Doc 8335).

A dry lease agreement

“… an agreement between undertakings pursuant to which the aircraft is operated under the AOC of the lessee…” (Article 2(24) of EC Reg 1008/2008 and Annex I, Paragraph 39 of EU Reg 965/2012).

A wet lease agreement

“… an agreement between air carriers pursuant to which the aircraft is operated under the AOC of the lessor…” (Article 2(25) of EC Reg 1008/2008 and Annex I, Paragraph 123 of EU Reg 965/2012).

Damp lease

“… wet-leased aircraft that includes a cockpit crew but not cabin attendants”. (ICAO Doc 8335).

An ‘Undertaking’

“… any natural or legal person, whether profit-making or not, or any official body whether having its own legal personality or not…” (Article 2(3) of EC Reg 1008/2008 and Annex I, Paragraph 119 of EU Reg 965/2012).

An ‘Air Carrier’

“… an undertaking with a valid operating licence or equivalent…” (Article 2(10) of EC Reg 1008/2008).

A ‘Community Air Carrier’

“… an air carrier with a valid operating licence granted by a competent licensing authority in accordance with Chapter II…” (Article 2(11) of EC Reg 1008/2008).

State of Registry

the “… State on whose register the aircraft is entered”. (ICAO Doc 8335).

State of Operator

“… State in which the operator’s principal place of business is located or, if there is no such place of business, the operator’s permanent residence”. (ICAO Doc 8335).

Principal place of business

“… the head office or registered office of a Community air carrier in the Member State within which the principal financial functions and operational control, including continued airworthiness management, of the Community air carrier are exercised”. (Article 2(2) of EC Reg 1008/2008).