Air Transportation Regulations (SOR/88-58)

Regulations are current to 2017-10-13 and last amended on 2017-02-13. Previous Versions

DIVISION IGeneral

Application

 This Division applies in respect of TPCs, TPNCs and TGCs.

  • SOR/96-335, s. 52.

Prohibition

 No person shall operate a TPC, TPNC or TGC unless the person holds a non-scheduled international licence that is valid for charters between Canada and the United States.

  • SOR/96-335, s. 52.

Carriage of Goods on Passenger Charters

  •  (1) Where a part of the bellyhold or main deck of an aircraft is not required for use pursuant to a TPC contract or TPNC contract, an air carrier may charter that part of the bellyhold or main deck for the carriage of goods if the goods are carried

    • (a) in that part of the bellyhold or main deck of the aircraft not required for use pursuant to the passenger charter contract;

    • (b) pursuant to another charter contract that is in respect of only that part of the bellyhold or main deck of the aircraft; and

    • (c) between the points served for the purpose of enplaning or deplaning passengers.

  • (2) Notwithstanding paragraph 20(a), an air carrier may charter a part of the bellyhold or main deck of an aircraft used for a TPC to a person who obtains payment for goods carried thereon at a toll per unit, if that part is not required for use pursuant to the TPC contract.

  • SOR/96-335, s. 52.

Direct Sales to the Public

 No air carrier shall act as a charterer in respect of a TPC, TPNC or TGC or sell any seat or any part of the space dedicated to passengers or goods on a TPC, TPNC or TGC directly to the public.

  • SOR/92-709, s. 19;
  • SOR/96-335, s. 52.

Air Carrier’s Own Traffic

 An air carrier may utilize unused space for the transport of the air carrier’s own goods and personnel and the goods and personnel of another air carrier on a TPC, TPNC or TGC if the air carrier has the prior concurrence of the charterer.

  • SOR/96-335, s. 52.

Subcontracting Transborder Charters Originating in Canada

  •  (1) Notwithstanding section 8.2, an air carrier may subcontract a TPC, TPNC or TGC or series thereof to a Canadian charter carrier licensee who holds a non-scheduled international licence or to a United States charter carrier licensee if

    • (a) the licensee holds a non-scheduled international licence that is valid for the operation of the subcontracted charter or series of charters;

    • (b) the licensee holds a Canadian aviation document that is valid for the operation of the subcontracted charter or series of charters;

    • (c) the licensee imposes no additional charge or other financial obligation on the passengers or the charterer; and

    • (d) the air carrier has passenger and third party liability insurance coverage for the operation of the subcontracted charter or series of charters, at least in the amounts set out in section 7,

      • (i) by means of its own policy, or

      • (ii) subject to subsection (2), by being named as an additional insured under the policy of the licensee.

  • (2) Where the air carrier is named as an additional insured under the policy of the licensee referred to in subsection (1), there must be a written agreement between the air carrier and the licensee to the effect that, for all charters or series of charters that are subcontracted, the licensee will hold the air carrier harmless from, and indemnify the air carrier for, all passenger and third party liabilities while passengers or cargo transported under a contract with the air carrier are under the control of the licensee.

  • (3) Where an air carrier subcontracts a TPC, TPNC or TGC or series thereof to a Canadian charter carrier licensee or to a United States charter carrier licensee, the air carrier is not required to

    • (a) notwithstanding paragraph 18(a), furnish the services, equipment and facilities that are necessary for the purposes of the operation of the TPC, TPNC or TGC or series thereof; or

    • (b) satisfy the condition set out in paragraph 18(c).

  • SOR/96-335, s. 52.

Records

 An air carrier shall, immediately upon the request of the Agency, permit the Agency to inspect the air carrier’s records respecting the operation of TPCs, TPNCs or TGCs, including records respecting any advance payments received by the air carrier in connection with TPCs.

  • SOR/96-335, s. 52.
  •  (1) An air carrier shall retain the flight coupons surrendered by passengers or equivalent information contained in another format, and shall maintain evidence that the air carrier has complied with the requirements of Divisions I to IV, for a period of one year after the date of departure of a TPC, TPNC or TGC.

  • (2) An air carrier shall, on the request of the Agency, submit forthwith any evidence that the Agency requires to verify that the requirements of Divisions I to IV have been complied with.

  • (3) Where the Agency determines that an air carrier has not complied with the requirements of Divisions I to IV, the Agency may require the air carrier to take measures to ensure compliance with these Regulations or may cancel any program permit issued or approval granted, or any small carrier charter permit that is deemed to have been issued by the Agency.

  • SOR/92-709, s. 20;
  • SOR/96-335, s. 52;
  • SOR/98-197, s. 4.

DIVISION IITransborder Passenger Charters Originating in Canada

Operation by Two Air Carriers

 Where a TPC is to be operated by two air carriers, both air carriers shall notify the Agency before the date of the TPC of the arrangements of their joint operation of the TPC.

  • SOR/96-335, s. 52.

Co-mingling Provision

  •  (1) No air carrier shall operate a TPC unless the entire passenger seating capacity of the aircraft is chartered by one or more charterers or a combination of charterers and United States charterers for resale.

  • (2) Where there is an arrangement between an air carrier and a United States charterer to combine a charter originating in the United States with a TPC, the terms and conditions applicable to the charter originating in the United States shall be governed by the provisions of Division V.

  • SOR/96-335, s. 52.

Flexible Return

 Where a charterer has more than one TPC contract with an air carrier, a passenger transported on an outbound portion of a TPC under one contract may be returned to the passenger’s point of origin on the same contract or on any other contract between the charterer and the air carrier.

  • SOR/96-335, s. 52.

Operational Restrictions

  •  (1) An air carrier may operate a charter in conjunction with a TPC, for the purpose of enplaning and deplaning passengers in a third country, provided that the operation is in accordance with this Division and Division I and the passengers make a stopover in the United States for at least two consecutive nights.

  • (2) Notwithstanding subsection (1), where the period of stopover in the third country exceeds the period of stopover in the United States, the provisions of Division II, IV, V or VI of Part III, as appropriate, shall apply in respect of the charter transportation to the third country.

  • SOR/96-335, s. 52.

Program Permits

  •  (1) An air carrier that proposes to operate a TPC or series of TPCs with aircraft having an MCTOW greater than 35,000 pounds (15,900 kg) shall apply in writing to the Agency for a program permit to operate the TPC or series of TPCs as soon as the charter contract is signed or amended by the air carrier and the charterer, or as soon as possible thereafter.

  • (2) An application under subsection (1) shall be made not less than 15 days and not more than one year before the date of the TPC or, in the case of a series of TPCs, the date of the first of those charters, and shall include

    • (a) a copy of every signed and dated charter contract and all amendments thereto relating to the TPC or series of TPCs;

    • (b) a financial guarantee respecting the TPC or series of TPCs that is provided by a Canadian financial institution in a form provided by the Agency; and

    • (c) a signed and witnessed statement by each charterer, in a form provided by the Agency, that certifies that the charterer is in possession of

      • (i) where the financial guarantee is a letter of credit, the original of the letter of credit and of all the amendments thereto respecting the TPC or series of TPCs, or

      • (ii) in any other case, a copy of the financial guarantee and of all amendments thereto respecting the TPC or series of TPCs.

  • (3) Every contract in respect of a TPC shall specify the following:

    • (a) the aircraft type and passenger seating capacity for each charter;

    • (b) the maximum number of seats allocated for passengers originating in Canada on each charter;

    • (c) every airport of enplanement or point of departure and every airport of deplanement or point of destination of each charter;

    • (d) the dates and times of arrival and departure at every point of each charter;

    • (e) the routing of each charter, including technical stops, if any;

    • (f) the name, address and telephone and facsimile numbers of each charterer and, where the TPC is to be operated with aircraft having an MCTOW greater than 35,000 pounds (15,900 kg), the valid and subsisting licence or registration number with expiry date of every charterer under any law of a province that requires travel agents or wholesalers to be licensed or registered;

    • (g) a detailed calculation of the total charter price to be paid by each charterer to the air carrier;

    • (h) the dates on which the payments of the total charter price referred to in paragraph (g) are to be made, on the page of the charter contract that bears the signatures of both the air carrier and the charterer; and

    • (i) where the TPC is to be operated with aircraft having an MCTOW greater than 35,000 pounds (15,900 kg), on the page of the charter contract that bears the signatures of both the air carrier and the charterer, that no advance payments will be received by the air carrier prior to the charterer having in its possession the original of a letter of credit and of any amendment thereto or, in the case of any other financial guarantee, a copy of the financial guarantee and of any amendment thereto and signed documentation, in a form provided by the Agency, that establishes the advance payments received by the air carrier for each TPC or series of TPCs are protected.

  • (4) The dates of payments specified in paragraph (3)(h) shall be at least seven days before the date of each charter and shall be in accordance with the air carrier’s tariff in effect on the date that the charter contract is signed.

  • (5) Every financial guarantee referred to in paragraph (2)(b) shall specify

    • (a) that any amount to which a charterer is entitled, under the charter contract, for a TPC that is not performed, be fully and promptly refunded by the Canadian financial institution that provided the financial guarantee;

    • (b) that any amount refunded in accordance with paragraph (a) be deposited in a trust account in the name and for the benefit of the charterer;

    • (c) that any money withdrawn from the trust account be used only for the payment of replacement air transportation or refunds to the proposed users of the TPC, either directly or through the appropriate travel agent or provincial authority;

    • (d) that the financial guarantee may not be terminated or amended, without at least 45 days notice being given to the Agency by one of the parties to the financial guarantee; and

    • (e) the name of the province under the laws of which the financial guarantee is to be governed and construed.

  • (6) The financial guarantee referred to in paragraph (2)(b) shall fully protect any advance payment in respect of the TPC or series of TPCs from the time the advance payment is received by the air carrier.

  • (7) Notwithstanding paragraph (5)(d), a financial guarantee may be terminated or amended on less than 45 days notice where the approval of the Agency is obtained, which approval shall be given if

    • (a) the air carrier files with the Agency an agreement signed by the parties to the financial guarantee, in a form provided by the Agency, that terminates or amends the financial guarantee on less than 45 days notice; and

    • (b) the termination or amendment does not result in advance payments received by the air carrier no longer being fully protected.

  • SOR/96-335, s. 52.
 
Date modified: