GM18 Annex I Definitions

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.