Government of Canada / Gouvernement du Canada
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Air Transportation Regulations (SOR/88-58)

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

PART IIIInternational Charters (Non-U.S.) (continued)

DIVISION VIAdvance Booking Charters (continued)

Tariffs and Tolls (continued)

  •  (1) An air carrier may utilize any space on an aircraft used for an ABC for the purposes of the transportation of the carrier’s own goods and personnel and another air carrier’s personnel or for any of those purposes with, if that space is chartered, the prior written concurrence of the charterer.

  • (2) [Repealed, SOR/96-335, s. 44]

  • SOR/96-335, s. 44

Operational Restriction

  •  (1) No air carrier shall operate an ABC between more than one point in Canada and more than one point outside Canada for the purpose of embarking and disembarking ABC passengers.

  • (2) Notwithstanding subsection (1), an air carrier may

    • (a) operate the outbound portion of an ABC to a point in a foreign country and the inbound portion from a different point in the country of destination or from a point in another country to the point of origin in Canada, for the purpose of embarking and disembarking ABC passengers, if no ABC traffic is transported between the points situated outside Canada; or

    • (b) operate an ABC between not more than two points in Canada and not more than two points outside Canada, for the purpose of embarking and disembarking ABC passengers, where arrangements are in existence between the Agency and the foreign aeronautical authorities having jurisdiction over ABC operations at the points outside Canada.

Financial Guarantees

  •  (1) The Agency shall not consider an application for a program permit to operate an ABC unless the applicant has a financial guarantee with a Canadian financial institution, in a standard form provided by the Agency, that provides that any advance payment in respect of the ABC is fully protected from the time it is received by the applicant from the charterer.

  • (2) An air carrier shall, at least 30 days before the cancellation or termination of a financial guarantee referred to in subsection (1), file a copy of a new or renewed, as the case may be, financial guarantee with the Agency.

  • (3) A financial guarantee referred to in subsection (1) shall specify

    • (a) that any amount to which a charterer is entitled under the contract for unperformed ABC transportation be fully and promptly refunded by the Canadian financial institution that issued the 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 ABC, either directly or through the appropriate travel agent or provincial authority;

    • (d) that the financial institution that issued the financial guarantee will not amend or cancel the financial guarantee without first giving 45 days notice to the Agency; and

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

  • (4) An application for a program permit made pursuant to subsection 48(1) to operate an ABC shall include

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

      • (i) in the case of a letter of credit, the original of the letter of credit applicable in respect of the ABC, or

      • (ii) in the case of any other type of financial guarantee, a copy of the financial guarantee applicable in respect of the ABC; and

    • (b) a copy of the financial guarantee applicable in respect of the ABC.

  • SOR/92-709, s. 16
  • SOR/96-335, s. 45

 [Repealed, SOR/92-709, s. 16]

Payment of Benefits and Advertisements of an ABC Prohibited

 No air carrier shall

  • (a) pay or offer to pay any commission or gratuity or give or offer to give any other benefit to any person in respect of any ABC; or

  • (b) advertise or cause to be advertised any ABC.

Stranded Passengers

  •  (1) Notwithstanding anything in these Regulations, where a passenger has missed a return flight on an ABC for reasons beyond the passenger’s control, an air carrier that participated in that ABC may transport the passenger on a subsequent ABC, if the air carrier has

    • (a) obtained the written consent of the charterer participating in the return portion of the ABC;

    • (b) obtained any necessary approval from the authorities of the foreign state concerned; and

    • (c) given prior notification to the Agency of the circumstances of the case.

  • (2) On the request of the Agency, the air carrier shall file therewith documentary evidence of the reasons why the passenger missed the return flight.

General Provisions

 [Repealed, SOR/96-335, s. 46]

 In case of any conflict between this Division and any other provisions of these Regulations, this Division prevails.


  •  (1) Subject to subsection (2), an air carrier that cancels an ABC in respect of which the Agency has issued a program permit shall forthwith file with the Agency a notice of cancellation, showing the program permit number assigned to the cancelled ABC.

  • (2) No separate notification of cancellation is required where an ABC is proposed to be cancelled in conjunction with a consolidation, as defined in subsection 72(1), applied for by an air carrier.

  • SOR/96-335, s. 47

Consolidation of ABCs

  •  (1) In this section,

    consolidated ABC

    consolidated ABC means an ABC that results from the consolidation of two or more ABCs; (VARA regroupé)


    consolidation means the transfer of the reservations of passengers booked on an ABC that is cancelled to another ABC that is to serve the same point of destination as the cancelled ABC and in respect of which the Agency has issued a program permit pursuant to section 48.1 or is deemed to have issued a small carrier charter permit pursuant to section 48.2; (regroupement)

  • (2) No air carrier shall consolidate ABCs unless the air carrier first obtains the written consent of each charterer that will be affected by the proposed consolidation.

  • (2.1) An air carrier that operates an ABC with aircraft having a MCTOW greater than 35,000 pounds (15,900 kg) that proposes to consolidate ABCs shall obtain permission from the Agency before the consolidation takes place, unless the consolidation is completed prior to the earliest of the deadlines established by section 56 for the ABCs to be consolidated and those ABCs are proposed to be operated

    • (a) between one point of origin and one point of destination; or

    • (b) between not more than two points of origin and not more than two points of destination pursuant to paragraph 64(2)(b).

  • (3) No application for consolidation shall be accepted by the Agency unless the application is received by the Secretary not later than 15 days prior to the proposed day of departure of the consolidated ABC.

  • (4) No application for consolidation of consecutive ABCs shall extend to any ABC the outbound portion of which is proposed to be commenced later than 13 weeks after the date of the first flight to be consolidated.

  • (5) No application for consolidation shall be approved by the Agency unless

    • (a) the consolidated ABC is to be flown to one point of destination from not more than two points of origin, except where the arrangements arrived at pursuant to paragraph 64(2)(b) are in effect and are applicable to the proposed consolidation, in which case the consolidated ABC may be flown between not more than two origins and two points of destinations;

    • (b) the charter rate applicable to the consolidated ABC is to be determined in accordance with such ABC tariff of the air carrier operating the consolidated ABC as is on file with the Agency and in effect at the time of signature of the contract relating to the consolidation and is applicable to the dates, times and the routing of the consolidated ABC;

    • (c) the outgoing portions of the ABCs or ABC back-to-back flights proposed to be consolidated are scheduled to be operated on the same day;

    • (d) the return portions of the ABCs or ABC back-to-back flights proposed to be consolidated are scheduled to be operated on the same day; and

    • (e) the applicant provides full particulars of the proposal, including

      • (i) where applicable, the program permit numbers of the ABCs to be consolidated,

      • (ii) the number of passenger seats available and sold for the outgoing portion and the return portion, respectively, of the ABCs identified pursuant to subparagraph (i),

      • (iii) where applicable, a description of the alternative air transportation to be offered to passengers who cannot be accommodated on the consolidated ABC,

      • (iv) each charterer’s written consent, together with a copy of the contract, respecting the proposed consolidation, and

      • (v) an economic justification of the proposed consolidation.

  • (6) The Agency shall deny any application for consolidation unless it determines, on the basis of the information contained in the application, that

    • (a) the ABCs or the series of ABCs proposed to be consolidated would not be economically viable as originally approved; and

    • (b) the consolidation would not be contrary to any of the conditions set out in section 22.

    • (c) [Repealed, SOR/96-335, s. 48]

  • (7) The air carrier shall ensure that all passengers holding reservations on any of the carrier’s ABCs affected by consolidation are offered an ABC or alternative air transportation acceptable to each of them at a price that is not higher than the price paid by the passenger for ABC transportation before the consolidation.

  • SOR/96-335, s. 48
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