Aircraft Lease & Conditions for parts usage

The replacement of parts is often noted in an aircraft lease agreement, as such the lease agreement will stipulate what can and what can not be used, on occasion it will also refer to a location and or part of the aircraft also.

The expense would be addressed by the lessee and statement such as “Lessee, at its own cost and expense, shall promptly replace, or procure the replacement of all Parts which may from time to time become worn out, lost, stolen, destroyed, seized, confiscated, damaged beyond repair or permanently rendered unfit for their intended use for any reason whatsoever”.

There is commonly reference to Part Manufacturer Approval or “PMA” parts. The accepted definition of PMA should be defined in the lease also such as ““PMA Part” means a Part which has not been manufactured by, or with the written permission of, the Manufacturer or the Engine Manufacturer, as the case may be.”

A common condition for the usage of PMA parts is shown below, remember that the lease is there to protect the asset value, it is often more restrictive that national aviation authority requirements.

“No PMA Part shall be installed within or on the Aircraft. No PMA Part shall be installed within an Engine, the APU or the Landing Gear.

“You can see how the importance of lease conditions and their awareness are a key piece of information in the preparation for a lease return. The lease is there to maintain the asset value, the regulations are there for airworthiness; what this means is that just because the aircraft is airworthy, it does not mean the aircraft meets lease return conditions.

There will be multiple conditions and stipulations that are of concern for a lease return and early awareness and preparation for these is important in avoiding delays during the lease return itself.

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