Common use of Lease Engine Coverage Clause in Contracts

Lease Engine Coverage. A. CFM shall use reasonable efforts to provide the following lease engine coverage i. If AVIANCATACA has an aircraft on ground (“AOG”) situation because the number of Engines in process at the CFM Designated Repair Station for Qualified Shop Visits exceeds the required quantity of spare Engines, as set forth in Exhibit B, and none of AVIANCATACA’s spare Engines are available because they are either receiving a Qualified Shop Visit or installed on an aircraft operated by AVIANCATACA and not by a third party, AVIANCATACA is eligible for the lease engine coverage described in this Article 5.1.4, ii. Within twenty-four (24) hours of being notified by AVIANCATACA that the above described AOG situation exists, CFM shall advise AVIANCATACA of the location of the closest available lease engine, iii. CFM shall Deliver or cause to be Delivered, such lease engine to AVIANCATACA, Ex Works (Incoterms 2010), at a CFM housekeeping facility or other mutually agreed location. CFM shall endeavor to provide this engine in a neutral QEC configuration. All transportation costs, including insurance will be AVIANCATACA’s responsibility, iv. CFM’s obligation to provide such lease engine will terminate when the AOG condition is corrected by the Redelivery of an Engine to AVIANCATACA and the passage of a reasonable amount of time to install such Engine in replacement of the leased engine, subject to AVIANCATACA’s obligation to return the lease engine set forth below, v. AVIANCATACA shall pay then-current market rates (but not to exceed the EFH rate that would apply)for the hourly restoration charges and the LLP fees per flight cycle payable under the lease in respect of the lease engine until the lease engine is removed from AVIANCATACA’s aircraft. CFM will waive the daily engine rental fees payable under the lease in respect of the lease engine.