Article 83 bis of the Convention on International Civil Aviation (better known as the Chicago Convention) was created in response to industry growth and emerging trends in aircraft leasing.
The agreement provides for the transfer of certain functions and duties from the State of registry to the State of the operator, clarifies safety responsibilities, simplifies procedures and in turn, enhances aviation safety. Article 83 bis assists with the structuring of cross-border aviation transactions by providing a mechanism for ensuring safety oversight of an aircraft that is operated from another State.
Article 83 bis Agreements also provide safety and efficiency advantages for an operator with multiple aircraft registered in more than one State, as they allow the flight crew members to be licensed according to the same licensing requirements and to fly all the aircraft of the operator’s fleet. In addition, some operators have noted that under an Article 83 bis Agreement, the leasing costs are reduced, and as a result, operators have seen a higher residual value during resale.
For an operator to take advantage of the benefits of an Article 83 bis Agreement, the State of registry and the State of the operator must first establish such an Agreement. The Bermuda Aircraft Registry currently has Article 83 bis Agreements with the Russian Federation, Azerbaijan, Tajikistan and Kazakhstan.