USE AND MAINTENANCE. a. Lessee will use each Engine only on N705BL a commercial transport aircraft owned and operated by Lessee. Engines shall be operated in a safe manner, and in accordance with the FAA, manufacturer's recommended operating procedures and manuals and instructions in effect from time to time and only in those countries for which the insurance required under herein is effective. Lessee shall not use the Engines on non-revenue service, except with the prior written approval of Lessor, however operational ferry flights and positioning flights shall be allowed so long as they are not training flights. b. During a Lease Term, Lessee will repair and maintain the Engine in accordance with application requirements of the Federal Aviation Administration, the requirements and recommendations of manufacturers of the Engines, and any special instructions of the Lessor, provided that any special instructions will not cause Lessee to bear any additional expense for any Engine lease hereunder. c. Lessee shall at all times protect and maintain the Engine in licensed serviceable condition, in accordance with the manufacturer's standards and specifications including: (1) Lessee at its expense shall accomplish all flight line inspections and maintenance necessary on the Engine, components, appliances, parts and other items of equipment installed thereon. (2) Lessee at its expense shall accomplish all inspections, maintenance, repair and overhaul necessary on the Engine, components, appliances, parts and other items of equipment installed thereon. (3) Lessee at its expense shall accomplish all Airworthiness Directives (A.D.s) issued during the term of the Lease which have a mandatory compliance date prior to return of the Engine to Lessor or any other Airworthiness Directives coming due during the term of the Lease. (4) All inspections, maintenance, repair and/or overhaul other than flight line maintenance shall be accomplished by a LESSOR-approved FAA maintenance facility and in accordance with FAA regulations and be returned to service in accordance with Title 14, Code of Federal Regulations, Part 43. Lessee shall bear the costs of and all transportation charges to and from such facility in connection therewith. (5) Lessee shall be responsible for line maintenance repairs; on-wing repairs; and any repairs and/or maintenance required to return an Engine to serviceable condition when the unserviceable condition resulted from an Abnormal Failure (where "Abnormal Failure" is defined as any unserviceable Engine condition that results in whole or part from foreign object damage abuse, misuse or negligent management or use or operational use of the Engine during the Lease). Lessee shall immediately notify Lessor of the Abnormal Failure and Lessee shall obtain Lessor's prior written approval (which approval shall not be unreasonably withheld) for the proposed Engine repair workscope. Daily Rent obligations shall continue unabated during such time as the Engine is being repaired by Lessee due to an Abnormal Failure. (6) Lessee shall not be responsible for repairs to return an Engine to serviceable condition when the unserviceable condition resulted from Normal Wear and Tear (where "Normal Wear a Tear" is defined as unserviceable Engine condition that is an internal failure due to pre-existing condition of engine prior to Lease). Lessee will advise Lessor and obtain Lessor's approval before commencing any repairs to the Engine for which Lessor is responsible. If, during a Lease Term, an Engine becomes unserviceable due to Normal Wear and Tear, (i) Lessee sh immediately notify Lessor of the unserviceable condition, and (ii) unless otherwise agreed by Les and Lessee, Lessee shall promptly return the Engine to Lessor in accordance to provisions herein d. Any replacement parts furnished by Lessee (in consideration of Lessee's above-stated Engine repair obligations) will be free and clear of liens and of equal or better Part Number and modification status than the part replaced. All such replacement parts must have been last serviced by FAA-approved repair facility and have attached thereto an 8130 return to service tag, and such parts will become the property of Lessor immediately upon installation on an Engine. All replaced unserviceable parts will become the property of Lessee immediately upon replacement. When such occurrence occurs, Lessee shall provide Lessor with On and Off log showing part number /serial number removed and the part number/serial number replaced by.
Appears in 2 contracts
Samples: Aircraft Engine Lease Agreement (Baltia Air Lines Inc), Aircraft Engine Lease Agreement (Baltia Air Lines Inc)
USE AND MAINTENANCE. a. (a) Lessee will use each Engine only on N705BL a commercial transport aircraft owned and operated by Lessee. Engines shall be operated in a safe manner, manner and in accordance with the FAA, manufacturer's recommended operating procedures and manuals and instructions in effect from time to time and only in those countries for which the insurance required under herein is effectiveon commercial transport aircraft owned or operated by Lessee. Lessee agrees not to operate or locate the Equipment or permit the Equipment to be operated or located in any area excluded from insurance coverages required to be maintained pursuant to Section 14 hereof. Lessee further agrees that each engine shall not use be used outside the Engines on non-revenue service, except with territorial limits of the United States without prior written approval consent of Lessor and Lessor, however operational ferry flights and positioning flights shall be allowed so long as they are not training flights's Lender.
b. (b) During a the Lease Term, Lessee will repair service, repair, overhaul, and maintain the Engine in accordance with application requirements of the Federal Aviation AdministrationEngine, the requirements and recommendations of manufacturers of the Engines, and any special instructions of the Lessor, provided that any special instructions will not cause Lessee subject to bear any additional expense for any Engine lease hereunder.
c. Lessee shall subsection (c) below at all times protect and maintain the Engine in licensed serviceable conditionits sole expense, in accordance with the manufacturerLessee's standards FAA approved part 121 maintenance program, so as to keep the Engine in as good operating condition as when delivered to Lessee, reasonable wear and specifications including:
(1) tear excepted. Such maintenance will include all major shop visit work as well as line maintenance and replacement of components and parts as may be required. In addition, Lessee at its expense shall accomplish all flight line inspections and maintenance necessary on will replace any loss to or repair any damage to the Engine, components, appliances, parts and other items regardless of equipment installed thereon.
(2) Lessee at its expense shall accomplish all inspections, maintenance, repair and overhaul necessary on the Engine, components, appliances, parts and other items of equipment installed thereon.
(3) Lessee at its expense shall accomplish all Airworthiness Directives (A.D.s) issued during the term of the Lease which have a mandatory compliance date prior to return of the Engine to Lessor or any other Airworthiness Directives coming due during the term of the Lease.
(4) All inspections, maintenance, repair and/or overhaul other than flight line maintenance shall be accomplished by a LESSOR-approved FAA maintenance facility and in accordance with FAA regulations and be returned to service in accordance with Title 14, Code of Federal Regulations, Part 43. Lessee shall bear the costs of and all transportation charges to and from such facility in connection therewith.
(5) Lessee shall be responsible for line maintenance repairs; on-wing repairs; and any repairs and/or maintenance required to return an Engine to serviceable condition when the unserviceable condition resulted from an Abnormal Failure (where "Abnormal Failure" is defined as any unserviceable Engine condition that results in whole or part from foreign object damage abuse, misuse or negligent management or use or operational use of the Engine during the Lease). Lessee shall immediately notify Lessor of the Abnormal Failure and Lessee shall obtain Lessor's prior written approval (which approval shall not be unreasonably withheld) for the proposed Engine repair workscope. Daily Rent obligations shall continue unabated during such time as the Engine is being repaired by Lessee due to an Abnormal Failure.
(6) Lessee shall not be responsible for repairs to return an Engine to serviceable condition when the unserviceable condition resulted from Normal Wear and Tear (where "Normal Wear a Tear" is defined as unserviceable Engine condition that is an internal failure due to pre-existing condition of engine prior to Lease)cause. Lessee will advise Lessor and obtain Lessor's approval before commencing any repairs non-routine repairs, such approval not to be unreasonably delayed or denied.
(c) Lessee shall be entitled to the use of accumulated Use Fees ("Engine for which Lessor is responsible. If, during a Lease Term, an Engine becomes unserviceable Reserves") to the extent adequate to cover off wing major shop visit work required due to Normal Wear and Tear, normal Exhaust Gas Temperature (i"EGT") Lessee sh immediately notify Lessor of the unserviceable conditionmargin deterioration, and (ii) unless otherwise agreed by Les the replacement or restoration of parts necessary for the engine to meet manufacturers specification and Lesseelimitations for reinstallation on an aircraft, provided Lessee first presents maintenance facility invoices or a workscope satisfactory to Lessor evidencing the work completed or intended for such maintenance or repair. Lessee shall have the right to apply Engine Reserves only if no Event of Default has occurred and is continuing. In the event that Engine Reserves are not sufficient to pay for such maintenance and repair, Lessee shall promptly pay any deficiency. The obligations, covenants and liabilities of Lessee under this provision arising prior to return of the Engine Equipment to Lessor shall continue in accordance full force and effect notwithstanding any termination arising out of an Event of Default under any Lease or otherwise, until such time as Lessor has received all sums and performances to provisions herein
d. Any replacement parts furnished by Lessee (in consideration of Lessee's above-stated Engine repair obligations) will be free and clear of liens and of equal or better Part Number and modification status than the part replaced. All such replacement parts must have been last serviced by FAA-approved repair facility and have attached thereto an 8130 return to service tag, and such parts will become the property of Lessor immediately upon installation on an Engine. All replaced unserviceable parts will become the property of Lessee immediately upon replacement. When such occurrence occurs, Lessee shall provide Lessor with On and Off log showing part number /serial number removed and the part number/serial number replaced bywhich it is entitled under any Lease.
Appears in 1 contract
Samples: General Terms Engine Lease Agreement (Frontier Airlines Inc /Co/)
USE AND MAINTENANCE. a. Lessee will use each Engine only on N705BL a commercial transport aircraft owned and operated by Lessee. Engines shall be operated in a safe manner, and in accordance with the FAA, manufacturer's recommended operating procedures and manuals and instructions in effect from time to time and only in those countries for which the insurance required under herein is effective. Lessee shall not use the Engines on non-revenue service, except with the prior written approval of Lessor, however operational ferry flights and positioning flights shall be allowed so long as they are not training flights.
b. During a Lease Term, Lessee will repair and maintain the Engine in accordance with application requirements of the Federal Aviation Administration, the requirements and recommendations of manufacturers of the Engines, and any special instructions of the Lessor, provided that any special instructions will not cause Lessee to bear any additional expense for any Engine lease hereunder.
c. Lessee shall at all times protect and maintain the Engine in licensed serviceable condition, in accordance with the manufacturer's standards and specifications including:
(1) Lessee at its expense shall accomplish all flight line inspections and maintenance necessary on the Engine, components, appliances, parts and other items of equipment installed thereon.
(2) Lessee at its expense shall accomplish all inspections, maintenance, repair and overhaul necessary on the Engine, components, appliances, parts and other items of equipment installed thereon.
(3) Lessee at its expense shall accomplish all Airworthiness Directives (A.D.s) issued during the term of the Lease which have a mandatory compliance date prior to return of the Engine to Lessor or any other Airworthiness Directives coming due during the term of the Lease.
(4) All inspections, maintenance, repair and/or overhaul other than flight line maintenance shall be accomplished by a LESSOR-approved FAA maintenance facility and in accordance with FAA regulations and be returned to service in accordance with Title 14, Code of Federal Regulations, Part 43. Lessee shall bear the costs of and all transportation charges to and from such facility in connection therewith.
(5) Lessee shall be responsible for line maintenance repairs; on-wing repairs; and any repairs and/or maintenance required to return an Engine to serviceable condition when the unserviceable condition resulted from an Abnormal Failure (where "Abnormal Failure" is defined as any unserviceable Engine condition that results in whole or part from foreign object damage abuse, misuse or negligent management or use or operational Tenant’s use of the Engine Generator and the UPS shall be subject to all applicable laws. The Generator and UPS shall be used by Tenant only during the Lease). Lessee shall immediately notify Lessor of the Abnormal Failure and Lessee shall obtain Lessor's prior written approval (which approval shall not be unreasonably withheld) for the proposed Engine repair workscope. Daily Rent obligations shall continue unabated during such time as the Engine is being repaired by Lessee due to an Abnormal Failure.
(6) Lessee shall not be responsible for repairs to return an Engine to serviceable condition when the unserviceable condition resulted from Normal Wear and Tear (where "Normal Wear a Tear" is defined as unserviceable Engine condition that is an internal failure due to pre-existing condition of engine prior to Lease). Lessee will advise Lessor and obtain Lessor's approval before commencing any repairs to the Engine for which Lessor is responsible. If, during a Lease Term, an Engine becomes unserviceable due to Normal Wear and Tear, (i) Lessee sh immediately notify Lessor of the unserviceable conditiontesting and regular maintenance, and (ii) unless the period of any electrical power outage in the Building. Tenant shall be entitled to operate the Generator and such connections to the Building for testing and regular maintenance only upon notice to Landlord and at times reasonably approved by Landlord. Landlord hereby makes no representations or warranties regarding the condition of such Generator and UPS, and Tenant shall accept such Generator and UPS in their currently existing, "as-is" condition. All repairs and maintenance and compliance with laws with respect to the Generator and the UPS shall be the sole responsibility of Tenant (at Tenant's sole cost and expense). Landlord shall have no obligation to maintain or repair such Generator or UPS. Tenant hereby agrees that Tenant shall maintain and repair both the Generator and UPS in first class operating condition (and consistent with the applicable manufacturer’s maintenance schedules and requirements) throughout the Lease Term and at Tenant's sole cost and expense. In the event that the Generator and UPS is destroyed or damaged in any way, Landlord shall have no obligation to repair or replace the same, or otherwise agreed by Les have any liability whatsoever in connection therewith. With respect to the insurance which Tenant is obligated to maintain on its personal property during the Lease Term pursuant to the terms and Lesseeconditions of this Lease, Lessee Tenant shall cause such insurance to also cover the Generator and UPS and, in addition, Tenant shall maintain, at Tenant's cost, industry standard "boiler and machinery" insurance coverage with respect thereto. During the Lease Term, Tenant shall not (A) remove any of the Generator and UPS, (B) sell any of the Generator and UPS, or (C) give any third party a security interest or any other interest in such Generator and UPS. Upon the expiration or earlier termination of the Lease Term, Tenant shall promptly return surrender such Generator and UPS to Landlord. In the Engine event that Tenant shall fail to Lessor comply with any of the requirements set forth in accordance this Section 6.5, without limitation of Landlord's other remedies, (i) Landlord shall have the right to provisions herein
d. Any replacement parts furnished terminate Tenant's rights with respect to the Generator and UPS, and/or (ii) Landlord shall have the right, at Tenant's sole cost and expense, to cure such breach, in which event Tenant shall be obligated to pay to Landlord, within ten (10) days following demand by Lessee (in consideration of LesseeLandlord, the amount expended by Landlord, plus Landlord's above-stated Engine repair obligations) will be free and clear of liens and of equal or better Part Number and modification status than the part replaced. All such replacement parts must have been last serviced by FAA-approved repair facility and have attached thereto an 8130 return to service tag, and such parts will become the property of Lessor immediately upon installation on an Engine. All replaced unserviceable parts will become the property of Lessee immediately upon replacement. When such occurrence occurs, Lessee shall provide Lessor with On and Off log showing part number /serial number removed and the part number/serial number replaced bystandard administration fee.
Appears in 1 contract