AGREEMENT BETWEEN THE CAYMAN ISLANDS (UK) AND SAUDI ARABIA CONCERNING THE TRANSFER OF REGULATORY OVERSIGHT FUNCTIONS AND DUTIES

WHEREAS the Protocol relating to Article 83 bis of the Convention on International Civil Aviation (Chicago, 1944) (hereinafter referred to "the Convention"), to which the Cayman Islands (UK) and Saudi Arabia are parties, entered into force on 20 June 1997;

WHEREAS Article 83 bis, with a view to enhanced safety, provides for the possibility of transferring to the State of the Operator all or part of the State of Registry's functions and duties pertaining to Articles 12, 30, 31 and 32(a) of the Convention;

WHEREAS, in line with Doc 9760 (Airworthiness Manual), Volume II, Part B, Chapter 10, and in the light of Doc 8335 (Manual of Procedures for Operations Inspection, Certification and Continued Surveillance), Chapter I 0, it is necessary to establish precisely the international obligations and responsibilities of the Cayman Islands (UK) and Saudi Arabia in accordance with the Convention;

WHEREAS, with reference to the relevant Annexes to the Convention, this Agreement organises the transfer from the Cayman Islands (UK) to Saudi Arabia of responsibilities normally carried out by the State of Registry, as set out in Articles III and IV below;

The Government of the Cayman Islands (UK), represented by its Civil Aviation Authority, and The Government of Saudi Arabia, represented by its General Authority of Civil Aviation,

Hereinafter referred to as "the Parties", have agreed as follows on the basis of Articles 33 and 83 bis of the Convention:

Article I - Scope

Section I. The Cayman Islands (UK) shall be relieved of responsibility in respect of the functions and duties transferred to Saudi Arabia, upon due publicity or notification of this Agreement as determined in paragraph b) of Article 83 bis.

Section 2. The scope of this Agreement shall be limited to the aircraft on the civil aircraft register of the Cayman Islands (UK) and operated by the named aircraft operator(s) whose principal place of business is in Saudi Arabia. The list of aircraft concerned, identified by type, registration number and serial number, is reproduced in Attachment I, which also indicates the term of each leasing arrangement.

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Article II- Transferred Responsibilities

Section 3. Under this Agreement, the Parties agree that the Cayman Islands (UK) transfers to Saudi Arabia the following functions and duties, including oversight and control of relevant items contained in the respective Annexes to the Convention:

Annex 1 -Personnel Licensing, issuance of flight crew licences for CAACI validation.

Annex 2 - Rules of the Air, enforcement of compliance with the applicable rules and regulations relating to the flight and manoeuvring of aircraft.

Annex 6 - Operation of Aircraft (Part 1 - International Commercial Air Transport -Aeroplanes), all responsibilities which are normally incumbent on the State of Registry. Where responsibilities in Annex 6, Part I, may conflict with the responsibilities in Annex 8 - Airworthiness of Aircraft, allocation of specific responsibilities is defined in Attachment 2.

Section 4. Under this Agreement, while the Cayman Islands will retain full responsibility under the Convention for the regulatory oversight and control of Annex 8 -Airworthiness of Aircraft, the responsibility for the approval of line stations used by the named operator is transferred to Saudi Arabia. The procedures related to the continuing airworthiness of aircraft to be followed by the named aircraft operator will be contained in the operator's maintenance control manual (MCM). Attachment 2 hereunder describes the responsibilities of the Parties regarding the continuing airworthiness of aircraft.

Article III - Notification

Section 5. Responsibility for notifying directly any States concerned of the existence and contents of this Agreement rests with Saudi Arabia as the State of the Operator, as needed. This Agreement, as well as any amendments to it, shall also be registered with ICAO by the Cayman Islands (UK) as the State of Registry or Saudi Arabia as the State of the Operator, as required by Article 83 bis of the Convention and in accordance with the Rulesfor Registration with ICAO of Aeronautical Agreements and Arrangements (Doc 6685).

Section 6. A certified true copy in English of this Agreement shall be placed on board each aircraft to which this Agreement applies.

Section 7. A certified true copy of the Air Operator Certificate (AOC) issued to the named aircraft operator by Saudi Arabia, in which the aircraft concerned will be duly listed and properly identified, will also be carried on board each aircraft to which this Agreement applies.

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Article IV - Coordination

Section 8. Meetings between the Civil Aviation Authority of the Cayman Islands (CAACI) and the General Authority of Civil Aviation of Saudi Arabia (GACA) will be held at regular intervals to discuss both operations and airworthiness matters resulting from inspections that have been conducted by respective inspectors. For the sake of enhanced safety, these meetings will take place for the purpose of resolving any discrepancies found as a result of the inspections and in order to ensure that all parties are fully informed about the named aircraft operator's operations. The following subjects will be among those reviewed during these meetings:

• Flight Operations • Continuing airworthiness and aircraft maintenance • Operator's MCM procedures, if applicable • Flight and cabin crew training and checking • Any significant matters arising from inspections

Section 9. Subject to reasonable notice, the CAACI will be permitted access to GACA documentation concerning the named aircraft operator in order to verify that Saudi Arabia is fulfilling its safety oversight obligations as transferred from the Cayman Islands.

Section 10. During the implementation of this Agreement, and prior to any aircraft subject to it being made the object of a sub-lease, Saudi Arabia, remaining the State of the Operator, shall inform the Cayman Islands. None of the duties and functions transferred from the Cayman Islands to Saudi Arabia may be carried out under the authority of a third State without the express written agreement of the Cayman Islands.

Article V - Final Clauses

Section II. This Agreement will enter into force on its date of signature, and come to an end for the aircraft listed in Attachment I at the completion of respective leasing arrangements under which they are operated. Any modification to the Agreement shall be agreed by the Parties thereto in writing.

Section 12. Any disagreement concerning the interpretation or application of this Agreement shall be resolved by consultation between the Parties.

Section 13. In witness thereof, the undersigned Director-General Civil Aviation of the Cayman Islands and the Representative of the General Authority of Civil Aviation for the Kingdom of Saudi Arabia have signed this Agreement.

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For the Government of the Cayman Islands (UK):

P.H. Richard Smith, Director-General Civil Aviation Authority Cayman Islands

Date:

For the Government of Saudi Arabia:

;

'

v:J, Captain M d Ali Jamjoom r Vice Presi

51'78 Safety an co mic Regulation General uthority of Civil Aviation

Date:

0 3 AUG 2010

Attachments: Attachment I -Aircraft affected by this Agreement Attachment 2 - Responsibilities ofthe Cayman Islands and Saudi Arabia

regarding airworthiness.

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Attachment 1 -AIRCRAFT AFFECTED BY THIS AGREEMENT (in order of date of delivery- most recent delivery is last)

Operator: National Air Services

Aircraft type Registration mark

A319-112 VP-CAN

A320-214 VP-CXZ

A320-214 VP-CXY

A320-214 VP-CXX

A320-214 VP-CXW

ERJ 190-1 OOLR VP-CQZ

ERJ 190-1 OOLR VP-CQX

ERJ 190-1 OOLR VP-CQY

A320-214 VP-CXS

A318-112 VP-CKH

ERJ 190-1 OOLR VP-CQW

A320-214 VP-CXT

A320-214 VP-CXU

A320-214 VP-CXR

A318-112 VP-CKS

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Serial number

1886

3361

3396

3425

3475

19000217

19000233

19000227

3787

3530

19000232

3817

2123

3894

3238

Leasing term

23 Apr 2007-23 Apr 2014

24 Sept 2007 - 24 Sept 2015

24 Sept 2007 - 24 Sept 2015

24 Sept 2007 - 24 Sept 2015

24 Sept 2007 - 24 Sept 2015

6 Jun 2007-6 Jun 2015

6 Jun 2007-6 Jun 2015

6 Jun 2007-6 Jun 2015

21 Oct 2008 -21 Oct 2016

NIA

NIA

21 Oct 2008 -21 Oct 2016

6 Jun 2007-6 June 2014

21 Oct 2008 -21 Oct 2016

NIA

0 3 AUG 2010

Attachment 2

RESPONSIBILITIES OF CAYMAN ISLANDS (UNITED KINGDOM) AND THE KINGDOM OF SAUDI ARABIA

Responsibilities of Responsibilities of the the State of the

State of Registry Operator ICAODoc Subject Cayman Islands The Kingdom of

(United Kine:dom) Saudi Arabia Annex 8, Part II, Mandatory continuing Ensure that Kingdom Ensure that the Chapter 4; Doc 9760, Airworthiness of Saudi Arabia and operator complies Volume II, Part B, information the operator receive with mandatory Chapter 8 all applicable continuing

mandatory continuing airworthiness airworthiness information information. transmitted by the

Cayman Islands (United Kingdom). (Note: Airworthiness Directives are distributed by the NAA that issues the Type Certificate Data Sheet)

Annex 6, Part I, 8.1.2 Operator's Issue approval for Approve line stations maintenance base maintenance and maintenance responsibilities organizations used by organizations used by

the air operator based the operator. on GACA approved maintenance organizations.

Annex 6, Part I, 8.2.1 Operator's Communicate to Ensure that guidance to 8.2.4 maintenance control Kingdom of Saudi is contained in the

manual (MCM) Arabia related MCM, approve the procedures to be MCM and transmit a included in MCM (or copy to the Cayman equivalent document) Islands

(United Kingdom).

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Responsibilities of Responsibilities of the the State of the

State of Registry Operator ICAODoc Subject Cayman Islands The Kingdom of

(United Kingdom) Saudi Arabia Annex 6 Part I, 8.3 Operator's Issue Maintenance Ensure that

Maintenance Program and Inspection procedures are Program Approval in contained in the accordance with MCM and approve AN(OT)Oand theMCM OTARs.

Annex 6, Part I, 8.4.1 Maintenance records Inspect maintenance Ensure that records to 8.4.3. records and are kept in accordance

documents every six with 8.4.1 to 8.4.3 of months to ensure the Annex 6, Part I, and C of A remains valid inspect in accordance

with the requirements oftheAOC.

Annex 6, Part I, 8.5.1 Continuing Ensure that the Ensure that the and 8.5.2 airworthiness airworthiness airworthiness

information requirements ofthe requirements of the Cayman Islands Cayman Islands (United Kingdom) are (United Kingdom) known to both Saudi and Kingdom of Arabia and the Saudi Arabia are operator. complied with and

adequate procedures are incorporated in the MCM,

Annex 6, Part 8.6; Modifications and Ensure that Ensure that the Doc 9760, Volume II, repairs modifications/repairs requirements are Part B, Chapter I 0, have been previously contained in the Attachment 10-A approved by the NAA MCM and approve

that has issued the theMCM. TCDS. Issue approvals for modifications/repairs and advise GACA.

Annex 6, Part I, 8. 7 Approved Issue approval for all Approve all and 8.8 maintenance base maintenance designated line

organization and organizations used by maintenance stations maintenance release the air operator in and maintenance

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ICAODoc

~j P.H. Richard Smith Director-General Civil Aviation Authority Cayman Islands

Subject

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Responsibilities of Responsibilities of the the State of the

State of Registry Operator Cayman Islands The Kingdom of

(United Kin2dom) Saudi Arabia accordance with 8.7 organizations used by and 8.8 based on the air operator GACA approved maintenance organizations.

Captain M a ed Ali Jamjoom Vice Pres' en Safety a d Economic Regulation Gener Authority of Civil Aviation The Kingdom of Saudi Arabia

THE UNITED KINGDOM REPRESENTATIVE on the COUNCIL of the

INTERNATIONAL CIVIL AVIATION ORGANIZATION Suite 14.15

999 University Street MONTREAL

Quebec CANADA H3~ 5)9

CERTIFICATION

Tel: +1514 954 8302 Fax: +1 514 954 8001

I HEREBY CERTIFY THAT THE ATTACHED IS A TRUE AND COMPLETE COPY OF THE ARTICLE 83 bis AGREEMENT BETWEEN THE GOVERNMENT OF THE CAYMAN ISLANDS (UK) AND SAUDI ARABIA CONCERNING THE TRANSEFR OF REGULATORY OVERSIGHT FUNCTIONS AND DUTIES, SIGNED ON 3 AUGUST 2010.

DONE AT MONTREAL, ON 5 OCTOBER 2010.

MICHAEL ROSSELL

United Kingdom Representative to ICAO'

THE UNITED KINGDOM REPRESENTATIVE on the COUNCIL of the

INTERNATIONAL CNIL AVIATION ORGANlZATION Suite 14.15

999 University Street MONTREAL

Quebec CANADA H3C 5)9

Our Ref: 69/1 06E

To: Secretary General

From: The United Kingdom Representative on the Council

Attention: Legal Bureau

The under mentioned document is forwarded for registration with ICAO.

Tel: +1 514 954 8302 Fax: +1514 954 8001

5 October 2010

Agreement between the Cayman Islands (UK) and the Kingdom of Saudi Arabia concerning Transfer of Regulatory Oversight Functions and Duties, with two attachments, signed on 3 August 2010.

I would be grateful if you would advise me, in due course, of the number under which this document has been registered.

MICHAEL ROSSELL United Kingdom Representative to ICAO

Enclosure

~CM CIVIL AVIATION AUTHORITY of the Cayman Islands

Captain Mohammed Ali Jamjoom Vice President Safety and Economic Regulation General Authority of Civil Aviation P.O. Box 887 Jeddah, 21165 Kingdom of Saudi Arabia

28 September 2010

Dear Captain Jamjoom,

Please find enclosed for co-signing two revised copies of the agreement between the Cayman Islands (UK) and Saudi Arabia concerning the transfer of regulatory oversight functions and duties in accordance with Article 83 bis of the Convention on International Civil Aviation. Members of both GACA and the CAACI have worked together in producing the revisions to this document. This version contains the most recent amendments suggested by Mr. Abdel Rahman Rashad and forwarded to the CAACI by email on 17 July 2010.

If you find this document to be acceptable, please sign both copies of the agreement, initial the bottom right corner of each page and return one copy to the CAACI. Attachment I of the document will be amended by the CAACI whenever a new aircraft is added to the NAS fleet.

I would like to suggest that a meeting between GACA and the CAACI be held in Jeddah on 4 December 2010 to discuss issues relating to the agreement. This would be similar to the meeting held last year between our respective authorities. Please let me know if this would be acceptable to you.

Yours sincerely,

P.H. Richard Smith, MBE, FRAeS Director-General Civil Aviation Authority Cayman Islands

Civil Aviation Authority of the Cayman Islands Unit 4, Cayman Grand Harbour, P.O. Box 102n, Grand Cayman KY1-1003 CAYMAN ISLANDS

Ph: 345·949·7811; Fax: 345·949-0761 www.caacayman.com; E-mail civtl.aviation®caacayman.com

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Safety & Economic Regulation ~:::I.GJI ul w.J=.U eu:. L::.JI,:, ·. 1 "II General Authority of Civil Aviation

Mr. P. H. Richard Smith, MBE, FRAeS Director-General Civil Aviation Authority Civil Aviation Authority of the Cayman Islands, Unit 4, Cayman Grand Harbour, P.O. Box 10277, Grand Cayman, KYI-1003, Cayman Islands

4August2010.

Dear Mr. Smith,

Please find attached a copy of the Cayman Island-Kingdom of Saudi Arabia 83bis agreement duly signed. We will ensure that a copy of this agreement is carried on-board each aircraft affected. If it is acceptable to you, the Cayman Island CAA will register this agreement with ICAO.

We welcome the opportunity to meet again with you and your team in Jeddah. However, due to our involvement in an IASA audit during the month of December we would suggest 25th of January or 1" of February 2011 for this meeting.

Thank you for the continued cooperation and best regards,

.. -tJamjoom

nomic Regulation uth tty of Civil Aviation of Saudi Arabia

Date: 7-/oB/tofo :~.;WI Attach: : .:.W_.tl No. : 7:fts / 117 6 : ,.._i_,JI

Saudi Arabia- P.O.Box 887 Jeddah, 21421 ( r D1 :~I ).AJ) r I i r I • ....._.. MV .,_,. '-"' _ .i;•~l ..... __,.o.JI4..S:.Lo.J.I