Air Transportation Regulations

91 (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.