Renowned Flights Ltd (RF) decided to expand their flight operations to include neighbouring African countries. To fund this expansion, they decided to lease an aircraft from Flight Sure Ltd (FS). The contract was signed on 1 September 2022, after the provisions of the contract were agreed upon by both parties on 15 August 2022. The contract stipulates the following: RF will have the right to use a 20-seater aircraft from 1 October 2022 supplied to them by FS for 3 years (with a one year extension period that will most likely be exercised) RF determines its own flight schedule and prices. FS will provide its own crew to operate the aircraft on request of RF. RF can only schedule flights to Angola, Zambia, Zimbabwe, Botswana and Namibia FS is responsible for all maintenance and can only replace the current aircraft at the request of RF RF will pay R875 000 on 30 September to FS yearly as consideration for the use of the aircraft. The implicit interest rate in the contract is 15.75%; RF will return the aircraft to FS at the end of its lease term and will have to restore the interior fittings to its original condition (at an estimated PV of R125 000). RF depreciates aircraft according to the straight-line method. The estimated useful life is 5 years. Required: Discuss whether the contract is, or contains a lease as per IFRS16.