Air Transportation Regulations (SOR/88-58)

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.

24.1 [Repealed, SOR/2019-176, s. 13]

24.2 [Repealed, SOR/2019-176, s. 13]

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.

32.1 [Repealed, SOR/2019-176, s. 13]

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.

33.1 [Repealed, SOR/2019-176, s. 13]

33.2 [Repealed, SOR/2019-176, s. 13]

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.

34.1 [Repealed, SOR/2019-176, s. 13]

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.