ED
Decision 2019/019/R
DETERMINING
THE PRINCIPAL PLACE OF BUSINESS
(a) The principal place of business
encompasses the principal financial functions and operational control of the
activities of an operator. It may refer to the organisation’s site from which
the majority of its management personnel specified in ORO.GEN.110 directs, controls or coordinates
its operational activities, ensuring that the organisation complies with
Regulation (EU) No 965/2012. For non-commercial operations, this is usually
the home base of the aircraft concerned or the location of the flight department.
(b) Since an operator, especially in the world
of non-commercial operations, may use several places where it performs
financial transactions, or several operational bases where there are personnel
in charge of operational control, for the purpose of an effective oversight,
it is relevant that the principal place of business be the one:
(1) where the operator has registered its
organisation with the local register and where it pays corporate tax;
(2) where its main building facilities are
located;
(3) where main administrative and financial
work is being done (where salaries and employment benefits are paid); and
(4) from where the organisation management
directs, controls or coordinates a substantial part of its activities,
ensuring that the organisation complies with the requirements specified in
Regulation (EU) No 965/2012.
(c) Organisations that perform also
activities which are not subject to Part-ORO, Part-NCC or Part-SPO are
recommended to consider that part of the organisation which is responsible for
the operation of aircraft subject to Part-ORO, Part-NCC or Part-SPO.
For such
organisations, the accountable manager is that manager who has the authority
to ensure that all activities subject to Part-ORO, Part-NCC or Part-SPO can be
financed and carried out in accordance with the applicable requirements. If
the accountable manager is not located in the part of the organisation that is
responsible for the operation of aircraft, but the other criteria mentioned in
point (b) apply, the location of the accountable manager does not need to be
considered for the determination of the principal place of business.
Under EASA aviation regulations, an operator's principal place of business is where core financial functions and operational control reside. This location typically manages operational activities, ensures regulatory compliance, handles administration, and pays corporate taxes. For effective oversight, it's the organization's registered location, directing substantial activities.
* Summary by Aviation.Bot - Always consult the original document for the most accurate information.
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