When an aircraft is leased, insurance must be carefully coordinated and the tax consequences taken into account. (a) Subject to the following conditions, the Lessor agrees to lease to the Lessee and the Lessee agrees to lease the aircraft by the Lessor, including the airframe, engines and all equipment described in Annex A (hereinafter referred to as “aircraft”). Without limiting the foregoing, this exchange option is deemed cancelled and the rental agreement remains in full force and effect if, for any reason, the lessor and the tenant are unable to agree on the termination value described in point iv) above and/or on the terms of the new rental agreement. In order to avoid a “false contract” between the parties, it is important that the lessor does not provide, or even arrange, pilots for the use of the aircraft by a lessee. The FAA found that when the lessor (or a related entity) employs the pilots hired by the lessee, it is in fact a contract. In accordance with the terms of the lease agreement, the lessor undertakes to acquire the aircraft described in Annex A to the lease agreement and to lease it to the lessee. If the aircraft that an operator wishes to make available is leased by a financial institution or an independent party, the operator must obtain the authorization of the “main lessee”. 8. LOSS, DETERIORATION AND AGREED LOSS VALUE: the renter bears and bears all risks of loss, theft, seizure, expropriation, seizure, damage or destruction of the aircraft, engine or part thereof for any reason, unless such events result directly from gross negligence or wilful misconduct on the part of the owner. If, for any reason, the aircraft or engine is worn, lost, stolen, seized, expropriated, seized, confiscated, destroyed, irreparably damaged or unusable (“accident events”), the renter must immediately (but in no case exceed 10 days from the date of such an accident) and inform the lessor in writing. If the owner considers that an accident has occurred and concerns only the engine of the aircraft, the lessee must, at his own expense and expense, replace these engines with an engine acceptable to the lessor and so that the ownership of this engine (these engines) is transferred to the lessor for lease to the lessor. When transferring ownership of such and such engines to the lessor, these engines must be present There are many situations in which an operator wishes to make his aircraft available to a third party.
As a general rule, this can be done by a non-exclusive Dry Lease….