Common use of Airworthiness Directives Clause in Contracts

Airworthiness Directives. (a) During the Term hereof Lessee agrees at its sole cost and expense to comply with any airworthiness directive, the Federal Aviation Regulations and Special Federal Aviation Regulations, manufacturers' mandatory service bulletins or any other mandatory regulation, directive or instruction ("Airworthiness Directive") which the FAA may from time to time issue and which becomes due during the Term in order to meet the requirements of Applicable Law related to the public transport of passengers and/or cargo by aircraft; provided, however. that nothing in this Lease shall be deemed to require Lessee or Lessor to bring the Aircraft into compliance with the Stage 3 noise standards set forth in Part 36 of the Federal Aviation Regulations (14 C.F.R. Part 36). All Airworthiness Directives shall be accomplished in accordance with all applicable bulletins and manuals published by the manufacturer of the Airframe or Engines or Parts. (b) Lessor shall hold title to any Parts included in a new system installed on the Aircraft pursuant to an Airworthiness Directive which is required by such Airworthiness Directive to be installed during the Term. (c) If Lessee would not normally perform an Airworthiness Directive, or such other modification desired by Lessor, the terms of which permit performance after the end of the Term, and Lessor requests Lessee, in writing, to perform such Airworthiness Directive or modification, Lessee shall perform such Airworthiness Directive or modification; provided, however, that Lessee's obligations to perform such Airworthiness Directive or modification pursuant to this Section 8.6(c) shall be subject to availability of the necessary material, labor and facilities and shall not unreasonably interfere with, or delay, Lessee's operation and are of the Aircraft. In the event Lessee is unable to perform an Airworthiness Directive or modification requested by Lessor under this Section 8.6(c) because of the lack of availability of materials, labor or facilities or such performance will unreasonably interfere with or delay Lessee's operation and use (including redelivery) of the Aircraft, Lessee will cooperate with, and assist Lessor in the accomplishment of such work by a FAA Repair Station. The costs of such performance shall be borne solely by Lessor and shall be equal to the sum of material costs and the associated Direct Labor Rate cost or labor costs, as the case may be.

Airworthiness Directives. (a) During the Term hereof Lessee agrees at its sole cost and expense (except as otherwise stated) to comply with any IAA airworthiness directive, the Federal Aviation Regulations and Special Federal Aviation Regulations, manufacturers' mandatory service bulletins bulletin or any other mandatory regulation, directive or instruction ("Airworthiness Directive") which the FAA IAA or other competent regulatory authority may from time to time issue (whether prior to or subsequent to the commencement of the Term) and with respect to which becomes due compliance is required during the Term in order to meet the requirements of Applicable Law related to for the public transport of passengers and/or cargo by aircraft; provided, however. that nothing in this Lease shall be deemed to require Lessee or Lessor to bring the Aircraft into compliance with the Stage 3 noise standards set forth in Part 36 of the Federal Aviation Regulations (14 C.F.R. Part 36)cargo. All Airworthiness Directives shall be accomplished in accordance with all applicable bulletins and manuals published by the manufacturer of the Airframe or Engines or Parts. (b) Lessor shall hold title to any Parts included in a new system installed on the Aircraft pursuant to an Airworthiness Directive which is required by such Airworthiness Directive to be installed during the Term. (c) If Lessee would not normally perform the terminating action specified by an Airworthiness Directive, or such other modification desired by Lessor, the terms of which permit performance after the end of the Term, prior to the end of the Term on its entire fleet of Lockheed L- 1011 aircraft pursuant to its schedule for performing such Airworthiness Directive applicable to its fleet of such aircraft, Lessee shall perform such Airworthiness Directive in accordance with Section 8.6(a), above. (d) If Lessee would not normally perform the terminating action specified by an Airworthiness Directive, the terms of which permit performance after the end of the Term, pursuant to its schedule for performing such Airworthiness Directive applicable to its fleet of Lockheed L-1011 aircraft and Lessor requests Lessee, in writing, to perform such Airworthiness Directive or modificationDirective, Lessee shall perform such Airworthiness Directive or modification; providedDirective, howeverPROVIDED, HOWEVER, that Lessee's obligations to perform such Airworthiness Directive or modification pursuant to this Section 8.6(c8.6(d) shall be subject to availability of the necessary material, labor and facilities and shall not unreasonably interfere with, or delay, Lessee's operation and are of the Aircraft. In the event Lessee is unable to perform an such Airworthiness Directive or modification requested by Lessor under this Section 8.6(c) because of the lack of availability of materials, labor or facilities or such performance will unreasonably interfere with or delay Lessee's operation and use (including redelivery) of the Aircraft, Lessee will cooperate with, and assist Lessor in the accomplishment of such work by a FAA Repair StationDirective. The costs of such performance shall be borne solely by Lessor and shall be equal to the sum of material costs and the associated Direct Labor Rate cost of performing such Airworthiness Directive. (e) In the event an Airworthiness Directive can be complied with by both more frequent inspection of such Part or labor costs, as the Aircraft than had theretofore been the case may be.or by repair or replacement of the relevant Part and if, in accordance with the Maintenance Program, Lessee has elected to comply by more frequent inspections, Lessee shall no later than the Segment C check referred to in

Airworthiness Directives. (a) During the Term hereof Lessee agrees at its sole cost and expense (except as otherwise stated) to comply with any CAA airworthiness directive, the Federal Aviation Regulations and Special Federal Aviation Regulations, manufacturers' mandatory service bulletins bulletin or any other mandatory regulation, directive or instruction ("Airworthiness Directive") which the FAA CAA or other competent regulatory authority may from time to time issue (whether prior to or subsequent to the commencement of the Term) and with respect to which becomes due compliance is required during the Term in order to meet the requirements of Applicable Law related to for the public transport of passengers and/or cargo by aircraft; provided, however. that nothing in this Lease shall be deemed to require Lessee or Lessor to bring the Aircraft into compliance with the Stage 3 noise standards set forth in Part 36 of the Federal Aviation Regulations (14 C.F.R. Part 36)cargo. All Airworthiness Directives shall be accomplished in accordance with all applicable bulletins and manuals published by the manufacturer of the Airframe or Engines or PartsApproved Maintenance Program. (b) Lessor shall hold title to any Parts included in a new system installed on the Aircraft pursuant to an Airworthiness Directive which is required by such Airworthiness Directive to be installed during the Term. (c) If Lessee would not normally perform the terminating action specified by an Airworthiness Directive, or such other modification desired by Lessor, the terms of which permit performance after the end of the Term, and prior to the end of the Term on its entire fleet of Lockheed L-1011 aircraft pursuant to its schedule for performing such Airworthiness Directive applicable to its fleet of such aircraft, Lessee shall perform such Airworthiness Directive during the Term in accordance with Section 8.6(a), above. (d) If Lessee would not normally perform the terminating action specified by an Airworthiness Directive, the terms of which permit performance after the end of the Term, pursuant to its schedule for performing such Airworthiness Directive applicable to its fleet of Lockheed L-1011 aircraft, but Lessor requests Lessee, in writing, to perform such Airworthiness Directive or modificationduring the Term, Lessee shall perform such Airworthiness Directive or modification; during the Term, provided, however, that Lessee's obligations to perform such Airworthiness Directive or modification pursuant to this Section 8.6(c8.6(d) shall be subject to availability of the necessary material, labor and facilities and shall not unreasonably interfere with, or delay, Lessee's operation and are of the Aircraft. In the event Lessee is unable to perform an such Airworthiness Directive or modification requested by Lessor under this Section 8.6(c) because of during the lack of availability of materials, labor or facilities or such performance will unreasonably interfere with or delay Lessee's operation and use (including redelivery) of the Aircraft, Lessee will cooperate with, and assist Lessor in the accomplishment of such work by a FAA Repair StationTerm. The costs of such performance shall be borne solely by Lessor and shall be equal to the sum of material costs and the associated Direct Labor Rate cost or labor costsof performing such Airworthiness Directive. (e) Except as expressly set forth in Section 8.6(d) and Section 8.8, as Lessee shall be solely responsible for the case may beexpense of complying with each particular Airworthiness Directive.

Airworthiness Directives. (a) During the Term hereof Except as expressly provided below, Lessee ------------------------ agrees at its sole cost and expense to comply with any airworthiness directive, the Federal Aviation Regulations and Special Federal Aviation Regulations, manufacturers' mandatory service bulletins or any other mandatory regulation, directive or instruction ("all Airworthiness Directive") Directives which the FAA may from time to time issue and which becomes become due during the Term in order to meet the requirements of Applicable Law related to the public transport of passengers and/or cargo by aircraft; provided, however. that nothing in this Lease shall be deemed to require Lessee or Lessor to bring the Aircraft into compliance with the Stage 3 noise standards set forth in Part 36 of the Federal Aviation Regulations (14 C.F.R. Part 36)Term. All Airworthiness Directives shall be accomplished in strict compliance with all issuing agency's specific instructions. Lessee shall comply with all Airworthiness Directives at its sole cost and expense up to US$25,000 per any one Airworthiness Directive. In the event that the cost of incorporating any terminating Airworthiness Directive (including parts, labor, and materials, but excluding any profit to Lessee) exceeds US$25,000 per any one Airworthiness Directive, the amount of the excess to be borne by the Lessor shall be calculated in accordance with all applicable bulletins and manuals published by the manufacturer following formula: 1 - (N-M) x (C-25,000) ----- T where "N" equals the total duration of the Airframe or Engines or Parts. (b) Lessor shall hold title Term in months; "M" represents the month of the Term in which the modification is completed; "C" represents the total actual cost of labor, parts, and materials for the modification; and "T" equals the actual useful life of the modification in months, not to extend beyond December 31, 1999. If the Lessee's cost of complying with any Parts included in a new system installed on the Aircraft pursuant to an one Airworthiness Directive which is required that must be accomplished during the Term exceeds One Hundred Thousand Dollars (US$100,000) in any individual case, then Lessee may, by written notice to Lessor, elect not to pay any portion of the cost of complying with such Airworthiness Directive costing in excess of US$100,000, in which event Lessor shall have the right to be installed during comply with the Term. (c) If Lessee would not normally perform an Airworthiness DirectiveDirective at its own expense, or by written notice to the Lessee within 15 days following receipt of such other modification desired by Lessornotice from Lessee, may advise Lessee that Lessor shall not perform such Airworthiness Directive (the terms "Excepted AD"), in which case the Lease shall terminate, effective upon the earlier of which permit performance after the end of the TermTerm or the final compliance date for the Excepted AD, whereupon the Lessee shall return the Aircraft to the Lessor in accordance with the provisions of Section 6 hereof, excepting only (i) the Excepted AD, and Lessor requests Lessee, in writing, to perform such Airworthiness Directive or modification, Lessee shall perform such Airworthiness Directive or modification; provided, however, that Lessee's obligations to perform such Airworthiness Directive or modification pursuant to this (ii) the C Check required by Section 8.6(c) shall be subject to availability of the necessary material, labor and facilities and shall not unreasonably interfere with, or delay, Lessee's operation and are of the Aircraft. In the event Lessee is unable to perform an Airworthiness Directive or modification requested by Lessor under this Section 8.6(c) because of the lack of availability of materials, labor or facilities or such performance will unreasonably interfere with or delay Lessee's operation and use (including redelivery) of the Aircraft, Lessee will cooperate with, and assist Lessor in the accomplishment of such work by a FAA Repair Station. The costs of such performance shall be borne solely by Lessor and shall be equal to the sum of material costs and the associated Direct Labor Rate cost or labor costs, as the case may be6.5.1.