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Air Transportation Regulations (SOR/88-58)

Regulations are current to 2019-06-20 and last amended on 2017-02-13. Previous Versions

AMENDMENTS NOT IN FORCE

  • — SOR/2019-150, s. 37

  • — SOR/2019-150, s. 38

    • 38 Section 2.1 of the French version of the Regulations is replaced by the following:

      • 2.1 Pour l’application du présent règlement, taxe s’entend des prix, taux ou frais établis par un transporteur aérien pour le transport, l’expédition, la garde, la manutention ou la livraison des marchandises ou pour le transport, le traitement et le soin des passagers, ou pour tout service connexe.

  • — SOR/2019-150, s. 39

    • 39 The Regulations are amended by adding the following after section 2.1:

      • 2.2 For the purposes of these Regulations, passenger means a person, other than a member of the air crew, who uses an air carrier’s domestic service or international service by boarding the air carrier’s aircraft pursuant to a valid contract or arrangement.

  • — SOR/2019-150, s. 40

      • 40 (1) Subparagraph 107(1)(n)(i) of the French version of the Regulations is replaced by the following:

        • (i) le transport des personnes handicapées,

      • (2) Subparagraphs 107(1)(n)(ii) to (xii) of the Regulations are replaced by the following:

        • (ii) the carriage of children,

        • (iii) unaccompanied minors, including those who are travelling under the carrier’s supervision,

        • (iv) the assignment of seats to children who are under the age of 14 years,

        • (v) failure to operate the service or failure to operate the air service according to schedule,

        • (vi) flight delay,

        • (vii) flight cancellation,

        • (viii) delay on the tarmac,

        • (ix) denial of boarding,

        • (x) the re-routing of passengers,

        • (xi) whether the carrier is bound by the obligations of a large carrier or the obligations of a small carrier that are set out in the Air Passenger Protection Regulations,

        • (xii) refunds for services purchased but not used, whether in whole or in part, either as a result of the client’s unwillingness or inability to continue or the air carrier’s inability to provide the service for any reason,

        • (xiii) ticket reservation, cancellation, confirmation, validity and loss,

        • (xiv) refusal to transport passengers or goods,

        • (xv) method of calculation of charges not specifically set out in the tariff,

        • (xvi) the carriage of baggage including the loss, delay or damaging of baggage,

        • (xvii) the transportation of musical instruments,

        • (xviii) limits of liability respecting passengers and goods,

        • (xix) exclusions from liability respecting passengers and goods,

        • (xx) procedures to be followed, and time limitations, respecting claims, and

        • (xxi) any other terms and conditions deemed under subsection 86.11(4) of the Act to be included in the tariff;

  • — SOR/2019-150, s. 41

    • 41 Section 113.1 of the Regulations is replaced by the following:

        • 113.1 (1) If an air carrier that offers an international service fails to apply the fares, rates, charges or terms and conditions of carriage set out in the tariff that applies to that service, the Agency may, if it receives a written complaint, direct the air carrier to

          • (a) take the corrective measures that the Agency considers appropriate; and

          • (b) pay compensation for any expense incurred by a person adversely affected by its failure to apply the fares, rates, charges or terms and conditions that are applicable to the service it offers and that were set out in the tariff.

        • (2) If the written complaint is with respect to a term or condition of carriage concerning an obligation prescribed by regulations made under subsection 86.11(1) of the Act, it must have been filed by a person adversely affected by the failure to apply the term or condition.

        • (3) The Agency may make applicable, to some or to all passengers of the same flight as the complainant, all or part of the Agency’s decision respecting a complaint related to any term or condition of carriage concerning any obligation prescribed by regulations made under paragraph 86.11(1)(b) of the Act, to the extent that it considers appropriate.

  • — SOR/2019-150, s. 42

      • 42 (1) Subparagraph 122(c)(i) of the French version of the Regulations is replaced by the following:

        • (i) le transport des personnes handicapées,

      • (2) Subparagraphs 122(c)(ii) to (xii) of the Regulations are replaced by the following:

        • (ii) the carriage of children,

        • (iii) unaccompanied minors, including those who are travelling under the carrier’s supervision,

        • (iv) the assignment of seats to children who are under the age of 14 years,

        • (v) failure to operate the service or failure to operate the air service according to schedule,

        • (vi) flight delay,

        • (vii) flight cancellation,

        • (viii) delay on the tarmac,

        • (ix) denial of boarding,

        • (x) the re-routing of passengers,

        • (xi) whether the carrier is bound by the obligations of a large carrier or the obligations of a small carrier that are set out in the Air Passenger Protection Regulations,

        • (xii) refunds for services purchased but not used, whether in whole or in part, either as a result of the client’s unwillingness or inability to continue or the air carrier’s inability to provide the service for any reason,

        • (xiii) ticket reservation, cancellation, confirmation, validity and loss,

        • (xiv) refusal to transport passengers or goods,

        • (xv) method of calculation of charges not specifically set out in the tariff,

        • (xvi) the carriage of baggage including the loss, delay or damaging of baggage,

        • (xvii) the transportation of musical instruments,

        • (xviii) limits of liability respecting passengers and goods,

        • (xix) exclusions from liability respecting passengers and goods,

        • (xx) procedures to be followed, and time limitations, respecting claims, and

        • (xxi) any other terms and conditions deemed under subsection 86.11(4) of the Act to be included in the tariff;

      • (3) Section 122 of the Regulations is amended by striking out “and” at the end of paragraph (b), by adding “and” at the end of paragraph (c) and by adding the following after paragraph (c):

        • (d) a policy respecting the refusal to transport a person who is less than five years old unless that person is accompanied by their parent or a person who is at least 16 years old.

  • — SOR/2019-150, s. 43

    • 43 Part V.1 of the Regulations is repealed.

  • — SOR/2019-176, s. 1

      • 1 (1) The definitions ABC/ITC, advance booking charter or ABC, Canadian charter carrier licensee, common purpose charter or CPC, courier service, CPC educational program, CPC event, door-to-door transportation, entity charter, fifth freedom, fourth freedom, inclusive tour or tour, inclusive tour charter or ITC, inclusive tour price, permit, price per seat, public liability, third freedom, tour features, tour operator, transborder goods charter or TGC, transborder passenger charter or TPC, transborder passenger non-resaleable charter or TPNC, transborder United States charter or TUSC, transportation, United States charter carrier licensee and United States charterer in section 2 of the Air Transportation RegulationsFootnote 1 are repealed.

      • (2) Section 2 of the Regulations is amended by adding the following in alphabetical order:

        charter flight

        charter flight means a flight that originates in a foreign country and is destined to Canada or originates in Canada and is destined to another country and that is operated according to a charter contract or arrangement for one-way or round-trip transportation of passengers or goods; (vol affrété)

        goods charter

        goods charter means a charter flight that originates in a foreign country and is destined to Canada or originates in Canada and is destined to another country and that is operated according to a charter contract or arrangement to carry goods; (vol affrété de marchandises)

        passenger foreign origin charter

        passenger foreign origin charter means a charter flight that originates in a foreign country and is destined to Canada and that is operated according to a charter contract or arrangement for the transportation of passengers; (vol affrété de passagers en provenance d’un pays étranger)

        passenger non-resaleable charter

        passenger non-resaleable charter means a charter flight that originates in Canada and is destined to another country, that is operated according to a charter contract or arrangement and that engages an aircraft on which the passenger seating capacity is not for resale to the public; (vol affrété de passagers non revendable)

        passenger resaleable charter

        passenger resaleable charter means a charter flight that originates in Canada and is destined to another country, that is operated according to a charter contract or arrangement and that engages an aircraft on which the passenger seating capacity is chartered for resale to the public; (vol affrété de passagers revendable)

        third party liability

        third party liability means legal liability of an air carrier, arising from the air carrier’s operation, ownership or possession of an aircraft, for

        • (a) injury to or death of persons other than the air carrier’s passengers or air crew; and

        • (b) damage to property other than property in the air carrier’s charge; (responsabilité à l’égard des tiers)

  • — SOR/2019-176, s. 2

    • 2 Paragraphs 3(1)(a) to (g), (l), (n) and (o) of the Regulations are repealed.

  • — SOR/2019-176, s. 3

      • 3 (1) Paragraph 7(1)(a) of the Regulations is replaced by the following:

        • (a) liability insurance covering injuries sustained by passengers while on board the aircraft engaged in the service or while embarking or disembarking the aircraft or death of passengers in an amount that is not less than the amount determined by multiplying $300,000 by the number of passenger seats on board the aircraft engaged in the service; and

      • (2) Paragraphs 7(1)(a) and (b) of the Regulations are replaced by the following:

        • (a) liability insurance covering injuries sustained by passengers while on board the aircraft engaged in the service or while embarking or disembarking the aircraft or death of passengers in an amount that is not less than the amount determined by multiplying $595,000, adjusted in accordance with section 7.1, by the number of passenger seats on board the aircraft engaged in the service; and

        • (b) third party liability insurance in an amount that is not less than

          • (i) where the MCTOW of the aircraft engaged in the service is not greater than 3 402 kg, $1,985,000, adjusted in accordance with section 7.1,

          • (ii) where the MCTOW of the aircraft engaged in the service is greater than 3 402 kg but not greater than 8 165 kg, $3,970,000, adjusted in accordance with section 7.1, and

          • (iii) where the MCTOW of the aircraft engaged in the service is greater than 8 165 kg, an initial amount of $3,970,000, adjusted in accordance with section 7.1, plus an amount, determined by multiplying $655, adjusted in accordance with section 7.1, by the number of kilograms, rounded to the nearest whole number, by which the MCTOW of the aircraft exceeds 8 165 kg.

      • (3) The portion of subsection 7(3) of the French version of the Regulations before paragraph (a) is replaced by the following:

        • (3) Il est interdit au transporteur aérien de souscrire, pour se conformer au paragraphe (1), une assurance responsabilité comportant une clause d’exclusion ou de renonciation qui réduit l’étendue des risques assurés en cas d’accident ou d’incident en deçà des sommes minimales établies en vertu de ce paragraphe, sauf si cette clause, selon le cas :

      • (4) Paragraph 7(3)(b) of the Regulations is repealed.

      • (5) Subsection 7(4) of the French version of the Regulations is replaced by the following:

        • (4) Le transporteur aérien peut souscrire une assurance tous risques à limite d’indemnité unique lorsque sa responsabilité est couverte par une seule police ou par un ensemble de polices primaires et complémentaires, auquel cas cette assurance doit prévoir une protection pour une somme au moins égale aux sommes minimales d’assurance combinées établies en vertu des alinéas (1)a) et b).

  • — SOR/2019-176, s. 4

    • 4 The Regulations are amended by adding the following after section 7:

        • 7.1 (1) The amount set out in paragraph 7(1)(a) by which the number of passenger seats on board the aircraft is multiplied is adjusted every five years starting on the day on which this section comes into force according to the following formula rounded to the nearest $5,000:

          A (B/C)

          where

          A
          is $595,000;
          B
          is the Consumer Price Index for the calendar year that is two years before the year in which the adjustment is made; and
          C
          is the Consumer Price Index for 2017.
        • (2) The amount of money set out in subparagraph 7(1)(b)(i) is adjusted every five years starting on the day on which this section comes into force according to the following formula rounded to the nearest $5,000:

          A (B/C)

          where

          A
          is $1,985,000;
          B
          is the Consumer Price Index for the calendar year that is two years before the year in which the adjustment is made; and
          C
          is the Consumer Price Index for 2017.
        • (3) The amount of money set out in subparagraph 7(1)(b)(ii) is adjusted every five years starting on the day on which this section comes into force according to the following formula rounded to the nearest $5,000:

          A (B/C)

          where

          A
          is $3,970,000;
          B
          is the Consumer Price Index for the calendar year that is two years before the year in which the adjustment is made; and
          C
          is the Consumer Price Index for 2017.
        • (4) The initial amount of money set out in subparagraph 7(1)(b)(iii) is adjusted every five years starting on the day on which this section comes into force according to the following formula rounded to the nearest $5,000:

          A (B/C)

          where

          A
          is $3,970,000;
          B
          is the Consumer Price Index for the calendar year that is two years before the year in which the adjustment is made; and
          C
          is the Consumer Price Index for 2017.
        • (5) The amount of money set out in subparagraph 7(1)(b)(iii) by which the number of kilograms of the MCTOW of the aircraft that exceeds 8 165 kg is multiplied is adjusted every five years starting on the day on which this section comes into force according to the following formula rounded off to the nearest $5:

          A (B/C)

          where

          A
          is $655;
          B
          is the Consumer Price Index for the calendar year that is two years before the year in which the adjustment is made; and
          C
          is the Consumer Price Index for 2017.
      • 7.2 For the purposes of section 7.1,

        • (a) a reference to the Consumer Price Index for any 12-month period means the average of the Consumer Price Index for Canada, as published by Statistics Canada under the authority of the Statistics Act, for each month in that 12-month period;

        • (b) if at any time the Consumer Price Index for Canada is adjusted to reflect a new time basis, a corresponding adjustment is to be made in the Consumer Price Index for any 12-month period that is used for the purpose of calculating the amounts under section 7.1; and

        • (c) if at any time the Consumer Price Index for Canada is adjusted to reflect a new content basis, that adjustment does not affect the operation of section 7.1.

  • — SOR/2019-176, s. 5

    • 5 Subsection 8.1(3) of the Regulations is replaced by the following:

      • (3) The financial requirements set out in subsection (2) do not apply to an applicant for a licence to operate an air service using medium aircraft if, at the date of issuance or reinstatement of the licence, the applicant operates one of the following air services:

        • (a) in the case of an application for a domestic licence, a service using medium or large aircraft under a scheduled or a non-scheduled international licence or large aircraft under a domestic licence; or

        • (b) in the case of an application for a scheduled or a non-scheduled international licence, a service using medium or large aircraft under a scheduled or a non-scheduled international licence or medium or large aircraft under a domestic licence.

      • (4) The financial requirements set out in subsection (2) do not apply to an applicant for a licence to operate an air service using large aircraft if, at the date of issuance or reinstatement of the licence, the applicant operates one of the following air services:

        • (a) in the case of an application for a domestic licence, a service using large aircraft under a scheduled or a non-scheduled international licence; or

        • (b) in the case of an application for a scheduled or a non-scheduled international licence, a service using large aircraft under a scheduled or a non-scheduled international licence or large aircraft under a domestic licence.

  • — SOR/2019-176, s. 6

      • 6 (1) Subsection 8.2(2) of the Regulations is replaced by the following:

        • (2) The licensee and the person who provides all or part of an aircraft with flight crew shall apply to the Agency for the approval at least 15 business days before the date of the first proposed flight.

      • (2) Paragraph 8.2(3)(c) of the Regulations is replaced by the following:

        • (c) if applicable, the name of the charterer or charterers and the charter permit number;

      • (3) The portion of subsection 8.2(4) of the Regulations before paragraph (a) is replaced by the following:

        • (4) The licensee shall maintain liability insurance covering injuries sustained by passengers and the death of passengers and third party liability insurance coverage for an air service for which another person provides all or part of an aircraft with flight crew, at least in the amount as determined under section 7,

      • (4) Paragraph 8.2(4)(b) of the Regulations is replaced by the following:

        • (b) subject to subsection (5), by being named as an additional insured under the policy of the other person and that policy must be primary and without right of contribution from any other insurance policy held by the licensee.

      • (5) Subsection 8.2(5) of the Regulations is replaced by the following:

        • (5) Where the licensee is named as an additional insured under the policy of the person who is providing all or part of an aircraft with flight crew, there must be a written agreement between the licensee and the person to the effect that, for all flights for which the person provides all or part of an aircraft with flight crew, the person will hold the licensee harmless from, and indemnify the licensee for, all passenger and third party liabilities while passengers or cargo transported under contract with the licensee are under the control of the person.

  • — SOR/2019-176, s. 7

      • 7 (1) Paragraphs 8.3(1)(a) and (b) of the Regulations are replaced by the following:

        • (a) the proposed air service is a service between Canada and the United States and both the licensee and the person who is providing all or part of the aircraft with flight crew hold a licence to operate the proposed service;

        • (b) the proposed air service is an international service and a temporary and unforeseen circumstance has transpired within 72 hours before the planned departure time of a flight or the first flight of a series of flights that has forced the use of all or part of an aircraft, with flight crew, provided by another person for a period of not more than one week, and the licensee has notified the Agency of the flight or the first flight of a series of flights in accordance with subsection (2);

        • (c) the proposed air service is an international service to be provided through a commercial arrangement, including code-sharing, both the licensee and the person providing part or all of the aircraft with flight crew participate in the marketing of the service and the licensee has notified the Agency of the flight or the first flight of a series of flights in accordance with subsection (3); or

        • (d) the proposed air service is a domestic service and the person who is providing all or part of the aircraft with flight crew holds a licence to operate the proposed service.

      • (2) Section 8.3 of the Regulations is amended by adding the following after subsection (2):

        • (3) The notification referred to in paragraph (1)(c) shall be given at least five business days before the date of the proposed flight or the first flight of a series of proposed flights and shall contain

          • (a) the name of the licensee;

          • (b) a description of the arrangement;

          • (c) in respect of the proposed air service,

            • (i) a statement that the appropriate licence, Canadian aviation document and the liability insurance coverage referred to in subsection 8.2(4) are in effect and that the liability insurance coverage is available for inspection by the Agency on request, and

            • (ii) the name of the operator of the aircraft;

          • (d) the type of aircraft to be provided;

          • (e) the points to be served;

          • (f) the frequency of the service;

          • (g) the period covered by the proposed air service; and

          • (h) the reasons why the use of a commercial arrangement is necessary.

  • — SOR/2019-176, s. 8

    • 8 Subsection 10(2) of the Regulations is repealed.

  • — SOR/2019-176, s. 9

    • 9 Subsection 15(3) of the Regulations is repealed.

  • — SOR/2019-176, s. 10

    • 10 Section 16 of the Regulations is repealed.

  • — SOR/2019-176, s. 11

    • 11 Section 18 of the Regulations is renumbered as subsection 18(1) and is amended by adding the following:

      • (2) The condition set out in paragraph (1)(c) does not apply to advertising put on the exterior of the aircraft.

  • — SOR/2019-176, s. 12

    • 12 Section 20 of the Regulations is replaced by the following:

      • 20 Every licensee who holds a non-scheduled international licence is subject to the condition that they must not operate a passenger non-resaleable charter with a person who obtains payment for the transportation of passengers and goods at a toll per unit.

  • — SOR/2019-176, s. 13

    • 13 Parts III and IV of the Regulations are replaced by the following:

      PART IIIInternational Charters

      DIVISION IGeneral Provisions

      Operation of International Charters
      • 21 Subject to sections 28 and 29, an air carrier shall not operate an international charter unless the Agency has issued a charter permit to the air carrier, or the air carrier has been deemed to have been issued a charter permit, in respect of that charter.

      • 22 If the Agency has issued a charter permit to a licensee for the operation of an international charter, the licensee must operate the international charter in accordance with the information that they submitted in order to obtain the charter permit.

      Powers of the Agency
        • 23 (1) The Agency may

          • (a) deny an application for a charter permit made under subsection 27(1) if the licensee does not meet the requirements set out in that subsection;

          • (b) deny an application for a charter permit made under section 34 if the licensee does not meet the requirements set out in subsections 34(1) to (7); and

          • (c) deny a request for a charter permit made under subsection 37(1) if the licensee does not meet the requirements set out in that subsection.

        • (2) If the operation of an international charter is contrary to the Act, these Regulations or any international agreement, convention or arrangement respecting civil aviation to which Canada is a party, the international charter is not operated in accordance with the information that the licensee submitted in order to operate the international charter or the licensee who operates the international charter contravenes subsection 74(2) of the Act with respect to the operation of that international charter,

          • (a) the Agency may cancel the charter permit that was issued for that international charter, and in the case of a charter permit issued under section 37, the Agency may refuse to issue any other charter permit under that section for a period not exceeding 12 months after the date of cancellation; and

          • (b) if this Division does not otherwise require the licensee who is operating the international charter to obtain prior approval, the Agency shall require, by notice in writing, the licensee to obtain a charter permit.

        • (3) If the operation of an international charter operated pursuant to a charter permit issued under section 37 is contrary to the Act, these Regulations or any international agreement, convention or arrangement respecting civil aviation to which Canada is a party, the international charter is not operated in accordance with the information that the licensee submitted in order to obtain a charter permit or the licensee who operates the international charter contravenes subsection 74(2) of the Act with respect to the operation of that international charter, the Agency shall require, by notice in writing, the licensee who is operating the international charter to apply for a charter permit in accordance with section 34 in which case the charter permit issued under section 37 is automatically cancelled.

        • (4) For the purposes of subsections (2) and (3), when determining whether the operation of an international charter is contrary to any international agreement, convention or arrangement respecting civil aviation to which Canada is a party, international reciprocity in matters of air transportation shall be taken into consideration.

      Carriage of Goods in Passenger Charters
      • 24 If a part of the bellyhold or main deck of an aircraft is not required for use pursuant to a charter contract or arrangement with respect to a passenger resaleable charter or passenger non-resaleable charter, a licensee 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 that is not required for use pursuant to the charter contract or arrangement;

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

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

      Unused Space on Aircraft
      • 25 A licensee may, on an aircraft that is to be used for a charter flight, utilize any unused space on the aircraft for the transport of the licensee’s own goods and personnel and the goods and personnel of another licensee if the licensee has the prior concurrence of the charterer.

      Charter Permit
        • 26 (1) A licensee that operates an international charter with aircraft having an MCTOW of 15 900 kg or less is deemed to have been issued a charter permit by the Agency for that purpose if the operation of the international charter is not contrary to the Act, these Regulations or any international agreement, convention or arrangement respecting civil aviation to which Canada is a party and the licensee does not contravene subsection 74(2) of the Act with respect to the operation of that international charter.

        • (2) For the purposes of subsection (1), when determining whether or not the operation of an international charter is contrary to any international agreement, convention or arrangement respecting civil aviation to which Canada is a party, international reciprocity in matters of air transportation shall be taken into consideration.

        • 27 (1) If the Agency requires a licensee to obtain a charter permit under paragraph 23(2)(b) for an international charter, the licensee shall provide the Agency with a written application for a charter permit at least two working days before the date of the proposed flight or the first flight of a series of proposed flights that contains the following information:

          • (a) the name, postal address, email address and telephone number of each charterer;

          • (b) the airport of enplanement or point of departure and the airport of deplanement or point of destination of each flight and any other airport proposed to be used by the licensee;

          • (c) the dates and times of departure and arrival of each flight; and

          • (d) the aircraft type and, as applicable, the passenger seating capacity of the aircraft and the nature, quantity and total weight of goods to be carried on each flight.

        • (2) The Agency shall issue a charter permit to a licensee to operate the international charter if the licensee has met the requirement set out in subsection (1) and the licence issued to the licensee authorizes the operation of the proposed flight or the series of proposed flights.

      Notice and Post Facto Reporting
      • 28 The following licensees that propose to operate an international charter with aircraft having an MCTOW greater than 15 900 kg do not have to obtain a charter permit in accordance with this Part if the proposed operation of the international charter would not be contrary to the Act, these Regulations or any international agreement, convention or arrangement respecting civil aviation to which Canada is a party, the licensee would not contravene subsection 74(2) of the Act with respect to the operation of that international charter and if they provide the Agency with a written notice before the date of the proposed charter flight or the first flight of a series of proposed charter flights that contains the information set out in paragraphs 27(1)(a) to (d):

        • (a) a licensee that proposes to operate a passenger non-resaleable charter that is destined to a country other than the United States;

        • (b) a licensee that proposes to operate a goods charter that originates in, or is destined to, a country other than the United States; and

        • (c) a licensee that proposes to operate a passenger foreign origin charter other than a passenger foreign origin charter that originates in the United States.

      • 29 A licensee that operates a passenger non-resaleable charter or a goods charter with aircraft having an MCTOW greater than 15 900 kg that is destined to, or originates in, the United States does not have to obtain a charter permit prior to operating the charter flight if the operation of the charter is not contrary to the Act, these Regulations or any international agreement, convention or arrangement respecting civil aviation to which Canada is a party, the licensee does not contravene subsection 74(2) of the Act with respect to the operation of that international charter and if, prior to the charter flight, they undertake to provide the Agency with a written report respecting the charter flights that were operated during the month in which the charter flight was operated within 30 days after the last day of that month and that contains the information set out in paragraphs 27(1)(a) to (d).

      • 30 For the purposes of sections 28 and 29, when determining whether or not the operation of an international charter would be contrary or is contrary to any international agreement, convention or arrangement respecting civil aviation to which Canada is a party, international reciprocity in matters of air transportation shall be taken into consideration.

      Evidence and Inspection
        • 31 (1) A licensee that operated a charter flight or series of charter flights shall keep evidence that the licensee operated the charter flight or series of charter flights in accordance with the information that they submitted in order to obtain the charter permit that was issued for that charter flight or those series of charter flights including

          • (a) in the case of a passenger resaleable charter, records respecting any advance payments received by the licensee; and

          • (b) flight coupons or equivalent information in another format.

        • (2) The licensee shall keep the evidence for a period of one year after the date of departure of the last charter flight authorized by each charter permit and make it available to the Agency during that period.

      Commingling
      • 32 When a licensee operates a passenger non-resaleable charter that is destined to a country other than the United States, the licensee shall charter with no more than three charterers, of which one or more may be foreign-origin charterers.

      Flexible Return of Passengers
      • 33 If a charterer has one or more international charter contracts with a licensee, a passenger transported on an outbound portion under one international charter contract may be returned to the passenger’s point of origin under the same international charter contract or under any of the other international charter contracts between the charterer and the licensee.

      DIVISION IIPassenger Resalable Charters

      Charter Permit
        • 34 (1) A licensee that proposes to operate a passenger resaleable charter or series of passenger resaleable charters with aircraft having an MCTOW greater than 15 900 kg shall apply in writing to the Agency for a charter permit to operate the passenger resaleable charter or series of passenger resaleable charters as soon as possible after the licensee and the charterer have signed or amended the charter contract but not less than 15 days and not more than one year before the date of the proposed passenger resaleable charter or the date of the first of the series of proposed passenger resaleable charters.

        • (2) The application shall include

          • (a) a copy of every signed and dated charter contract and any amendments made to those contracts relating to the passenger resaleable charter or series of passenger resaleable charters;

          • (b) a financial guarantee respecting the passenger resaleable charter or series of passenger resaleable charters that is provided by a Canadian financial institution; and

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

            • (i) a copy of the financial guarantee and any amendments made to the financial guarantee, and

            • (ii) if the financial guarantee is a letter of credit, the original of the letter of credit and any amendments made to the letter of credit.

        • (3) The charter contract referred to in subsection (1) shall specify

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

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

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

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

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

          • (f) the name, postal address, email address and telephone number of each charterer; and

          • (g) the total charter price to be paid by each charterer to the licensee and the amounts of the advance payments, and the dates on which the advance payments are to be made, on the page of the charter contract that bears the signatures of both the licensee and the charterer.

        • (4) The charter contract referred to in subsection (1) shall include a statement by the licensee and charterer on the page of the charter contract that bears the signatures of both the licensee and the charterer stating that

          • (a) the licensee will not accept any advance payment prior to the charterer having in its possession the original of a letter of credit and any amendments made to it or, in the case of any other financial guarantee, a copy of the financial guarantee and any amendments made to it; and

          • (b) the financial guarantee fully protects any advance payments that the licensee receives.

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

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

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

          • (b) 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) 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 passenger resaleable charter, either directly or through the appropriate travel agent or provincial authority;

          • (d) the financial guarantee may not be terminated or amended unless at least 45 days notice is given to the Agency by one of the parties to the financial guarantee; and

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

        • (7) The financial guarantee referred to in paragraph (2)(b) shall fully protect any advance payment in respect of the passenger resaleable charter or series of passenger resaleable charters from the time the advance payment is received by the licensee.

        • (8) Notwithstanding paragraph (6)(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 licensee files with the Agency an agreement that is signed by the parties to the financial guarantee and terminates or amends the financial guarantee on less than 45 days’ notice; and

          • (b) the advance payments received by the licensee will continue to be protected despite the termination or amendment.

      • 35 The Agency shall issue a charter permit to a licensee to operate a passenger resaleable charter or series of passenger resaleable charters if the licensee has met the requirements set out in subsections 34(1) to (7) and the licence issued to the licensee authorizes the operation of the flight or the series of flights.

        • 36 (1) A licensee shall not operate a passenger resaleable charter or series of passenger resaleable charters that use aircraft having an MCTOW greater than 15 900 kg without meeting the following requirements unless they have a charter permit issued under section 37 that authorizes the licensee to operate the passenger resaleable charter or series of passenger resaleable charters:

          • (a) subject to subsection (2), notifies the Agency in writing of any amendment to the charter contract or arrangement after the issuance of the charter permit by submitting to the Agency a copy of the amended charter contract or arrangement at least three working days before the amendment takes effect and obtains an amended charter permit from the Agency;

          • (b) files without delay with the Agency any amendment to the financial guarantee; and

          • (c) notifies the Agency in writing of the cancellation of any charter flight set out in the charter contract or arrangement and specifies the number of the charter permit issued.

        • (2) Paragraph (1)(a) does not apply to a licensee if

          • (a) the licensee notifies the Agency in writing of any amendment to the charter contract or arrangement prior to the departure of the charter flight and the amendment

            • (i) relates to the aircraft type used and results in a decrease in or in no change to the passenger seating capacity of the aircraft used for the charter flight, or

            • (ii) relates to the date of the charter flight, if it will be operated not more than three days before or after the original date set out in the charter contract or arrangement; or

          • (b) the amendment to the charter contract or arrangement results in an increase in the passenger seating capacity of the aircraft used for the charter flight due to a change in the aircraft type used for the charter flight or due to any other change and the licensee submits to the Agency a copy of the amended charter contract or arrangement at least three working days before the amendment takes effect.

        • 37 (1) On request, the Agency shall issue a charter permit to a licensee, that is valid for a period of up to one year, to operate a passenger resaleable charter or series of passenger resaleable charters with aircraft having an MCTOW greater than 15 900 kg without the requirement to apply for a charter permit under section 34 if the licence issued to the licensee authorizes the operation of the flight or the series of flights and the licensee

          • (a) holds a financial guarantee that meets the requirements of subsections 34(6) and (7) and files a copy of the financial guarantee with the Agency;

          • (b) files with the Agency a signed and witnessed statement by each charterer that certifies that the charterer is in possession of

            • (i) a copy of the financial guarantee and any amendments made to the financial guarantee; and

            • (ii) if the financial guarantee is a letter of credit, the original of the letter of credit and any amendments made to the letter of credit;

          • (c) files with the Agency proof that verifiable monitoring, compliance and disclosure systems situated in Canada have been instituted to enable the licensee, during the period of validity of the charter permit, to ensure that

            • (i) the level of protection specified in the financial guarantee is such that all advance payments are fully protected at all times, and

            • (ii) all provisions of the financial guarantee are fully complied with.

        • (2) The monitoring, compliance and disclosure systems shall not be modified in any way during the period of validity of the charter permit without the prior written approval of the Agency, which approval shall be given if the requirements set out in subparagraphs (1)(c)(i) and (ii) continue to be met.

        • (3) During the period of validity of the charter permit,

          • (a) the licensee shall include in every charter contract and arrangement that is in force during that period, the information and statement required under subsections 34(3) and (4) respectively;

          • (b) the licensee shall, in respect of a charter contract or arrangement referred to in paragraph (a), specify, on the page of the charter contract or arrangement that bears the signatures of both the licensee and the charterer, that a charter permit has been issued by the Agency and the period of the validity of the charter permit;

          • (c) the licensee shall provide each charterer with

            • (i) a copy of the financial guarantee and any amendments made to the financial guarantee in addition to signed documentation that establishes that the advance payments received by the licensee for each charter or series of charters are protected, or

            • (ii) if the financial guarantee is a letter of credit, the original of the letter of credit and any amendments made to the letter of credit;

          • (d) the provisions of subsection 34(8) and paragraph 36(1)(b) shall apply;

          • (e) the licensee shall file with the Agency a copy of all financial guarantees, other than the financial guarantees referred to in paragraph (1)(a), subsection 34(8) and paragraph 36(1)(b), prior to any advance payments being received from the charterer; and

          • (f) the licensee shall, upon filing with the Agency a copy of a financial guarantee pursuant to paragraph (e), file evidence with the Agency that

            • (i) the charterer has been provided with the financial guarantee in accordance with paragraph (c), and

            • (ii) the level of protection specified in the financial guarantee is such that all advance payments are fully protected at all times.

      • 38 The licensee shall submit to the Agency in writing, within 30 days after the end of each month, a report respecting the passenger resaleable charter or series of passenger resaleable charters that were operated during the previous month with aircraft having an MCTOW greater than 15 900 kg pursuant to a charter permit that was issued under section 37 that sets out

        • (a) the aircraft type and number of available seats for each charter flight;

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

        • (c) the dates of departure and arrival of each charter flight; and

        • (d) for each charter flight, the number of Canadian-origin passengers and the number of foreign-origin passengers.

  • — SOR/2019-176, s. 14

    • 14 Section 108 of the Regulations is replaced by the following:

      • 108 This Division applies to any air carrier that operates an international service other than an air carrier that operates a non-scheduled international service that transports traffic originating entirely in a foreign country.

  • — SOR/2019-176, s. 15

    • 15 Paragraph 115(1)(b) of the Regulations is replaced by the following:

      • (b) if the tariff or amendment is filed at least one working day before it comes into force to publish tolls for an additional aircraft to be used in, or to cancel tolls respecting an aircraft to be withdrawn from, a non-scheduled international service, other than a service that is operated at a toll per unit of traffic; or

  • — SOR/2019-176, s. 16

    • 16 Subsection 120(1) of the Regulations is replaced by the following:

        • 120 (1) Tariffs may be filed with the Agency in paper or electronic form.

  • — SOR/2019-176, s. 17

    • 17 Division III of Part V of the Regulations is repealed.

  • — SOR/2019-176, s. 18

      • 18 (1) The Regulations are amended by replacing “public liability” with “third party liability” in the following provisions:

        • (a) the heading before item 1 of Schedule I;

        • (b) items 1 and 2 of Schedule I; and

        • (c) the table of Schedule I.

      • (2) Item 3 of Schedule I to the Regulations is amended by replacing “Public” with “Third Party”.

  • — SOR/2019-176, s. 19

    • 19 Schedule II to the Regulations is repealed.

  • — SOR/2019-176, s. 20

    • 20 Schedule XIII to the Regulations is repealed.

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