Air Transportation Regulations (SOR/88-58)
Full Document:
- HTMLFull Document: Air Transportation Regulations (Accessibility Buttons available) |
- XMLFull Document: Air Transportation Regulations [352 KB] |
- PDFFull Document: Air Transportation Regulations [596 KB]
Regulations are current to 2025-02-04 and last amended on 2021-07-01. Previous Versions
PART IGeneral (continued)
Provision of Aircraft with Flight Crew (continued)
8.4 Where the Agency has granted an approval, or no approval is required pursuant to section 8.3, the licensee is not required to
(a) notwithstanding paragraph 18(a), furnish the services, equipment and facilities that are necessary for the purposes of the provision of the air service; or
(b) satisfy the condition set out in paragraph 18(c).
- SOR/96-335, s. 4
Public Disclosure
8.5 (1) Subject to subsection (4), a licensee that intends to provide an air service described in subsection 8.2(1) shall so notify the public in accordance with subsection (2).
(2) The licensee shall give notification that the air service referred to in subsection (1) is being operated using an aircraft and a flight crew provided by another person, and shall identify that person and specify the aircraft type
(a) on all service schedules, timetables, electronic displays and any other public advertising of the air service; and
(b) to travellers
(i) before reservation, or after reservation if the arrangement for the air service has been entered into after a reservation has been made, and
(ii) on check-in.
(3) A licensee shall identify the person providing the aircraft and specify the aircraft type for each segment of the journey on all travel documents, including, if issued, itineraries.
(4) Where paragraph 8.3(1)(b) applies, a licensee is exempt from having to comply with the requirements of subsection (1), paragraph (2)(a), subparagraph (2)(b)(i) and subsection (3) only if the licensee has made every effort to comply with them.
(5) Where an approval is required by subsection 8.2(1) or an acknowledgement is required by paragraph 8.3(1)(b), the licensee may give the notification referred to in subsection (2) before receipt of the approval or acknowledgement if the notification contains a statement that the provision of the air service using all or part of an aircraft, with a flight crew, provided by a person other than the licensee is subject to the consent of the Agency.
- SOR/96-335, s. 4
- SOR/2017-19, s. 1(F)
9 [Repealed, SOR/96-335, s. 4]
PART IIDomestic and International Licences and Reduction in Domestic Services
- SOR/96-335, s. 5
Domestic Licensing
10 (1) An applicant for a domestic licence, or for an amendment to or a renewal of such a licence, shall submit to the Agency documentary evidence to establish that the applicant
(a) is a Canadian or is exempted from that requirement under section 62 of the Act;
(b) holds a Canadian aviation document that is valid in respect of the air service to be provided under the licence;
(c) has the liability insurance coverage required by section 7 in respect of the air service to be provided under the licence and has complied with section 8; and
(d) where the applicant is required to meet the financial requirements set out in section 8.1, meets those requirements.
(2) [Repealed, SOR/2019-176, s. 8]
- SOR/96-335, s. 6
- SOR/2019-176, s. 8
SOR/2019-176, s. 8
8 Subsection 10(2) of the Regulations is repealed.
11 to 13 [Repealed, SOR/96-335, s. 7]
Reduction or Discontinuance of Domestic Services
- SOR/2001-71, s. 1
14 (1) For the purposes of subsection 64(1) of the Act, a licensee proposing to discontinue or to reduce the frequency of a domestic service to a point to less than one flight per week, where, as a result of the proposed discontinuance or reduction, there will be only one licensee or no licensee offering at least one flight per week to that point, shall give notice of the proposal
(a) to the Agency, to the Minister and to the minister responsible for transportation in the province or territory where the area to be affected is located, by sending them a notice in the form set out in Schedule III; and
(b) to holders of domestic licences operating in the area to be affected by the proposal and to persons resident therein, by publishing notice in the form set out in Schedule III in newspapers with the largest circulation in that area in each official language, the names of which newspapers shall be obtainable from the Agency on request by the licensee.
(1.1) For the purposes of subsection 64(1.1) of the Act, a licensee proposing to discontinue a year-round non-stop scheduled air service between two points in Canada, where the proposed discontinuance would result in a reduction, as compared to the week before the proposal is to take effect, of at least 50% of the weekly passenger-carrying capacity of all licensees operating year-round non-stop scheduled air services between those two points, shall give notice of the proposal to the persons, and in the manner, referred to in paragraphs (1)(a) and (b).
(2) The date of the notice referred to in paragraph (1)(b) shall be the same as the date on which the notice appears in the newspaper.
- SOR/96-335, s. 8
- SOR/2001-71, s. 2
International Licensing
15 (1) An applicant for a scheduled international licence, or for an amendment to or a renewal of such a licence, shall submit to the Agency documentary evidence to establish that the applicant
(a) is eligible to hold a scheduled international licence;
(b) holds a Canadian aviation document that is valid in respect of the air service to be provided under the licence;
(c) has the liability insurance coverage required by section 7 in respect of the air service to be provided under the licence and has complied with section 8; and
(d) where the applicant is required to meet the financial requirements set out in section 8.1, meets those requirements.
(2) An applicant for a non-scheduled international licence, or for an amendment to or a renewal of such a licence, shall submit to the Agency documentary evidence that
(a) meets the requirements of paragraphs (1)(b) to (d); and
(b) establishes that
(i) the applicant is a Canadian, or
(ii) where the applicant is a non-Canadian, the applicant holds a document issued by the government of the applicant’s state or an agent thereof, in respect of the air service to be provided, that is equivalent to the non-scheduled international licence for which the application is being made.
(3) [Repealed, SOR/2019-176, s. 9]
- SOR/96-335, s. 9
- SOR/2019-176, s. 9
SOR/2019-176, s. 9
9 Subsection 15(3) of the Regulations is repealed.
International Service Exclusions
16 [Repealed, SOR/2019-176, s. 10]
17 A non-Canadian air carrier is exempt from the requirement set out in paragraph 57(a) of the Act where the carrier disembarks passengers or goods in Canada as a result of circumstances beyond the carrier’s control.
- SOR/96-335, s. 10
Licence Conditions
18 (1) Every scheduled international licence and non-scheduled international licence is subject to the following conditions:
(a) the licensee shall, on reasonable request therefor, provide transportation in accordance with the terms and conditions of the licence and shall furnish such services, equipment and facilities as are necessary for the purposes of that transportation;
(b) the licensee shall not make publicly any statement that is false or misleading with respect to the licensee’s air service or any service incidental thereto; and
(c) the licensee shall not operate an international service, or represent by advertisement or otherwise the licensee as operating such a service, under a name other than that specified in the licence.
(2) The condition set out in paragraph (1)(c) does not apply to advertising put on the exterior of the aircraft.
- SOR/96-335, s. 10
- SOR/2019-176, s. 11
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.
19 Subject to sections 142 and 143, every scheduled international licence shall be subject to the condition that the licensee shall, subject to any delays due to weather, conditions affecting safety or abnormal operating conditions, operate every flight in accordance with its service schedule.
- SOR/96-335, s. 10
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/92-709, s. 1
- SOR/96-335, s. 10
- SOR/98-197, s. 1
- SOR/2019-176, s. 12
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.
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.
- SOR/2019-176, s. 13
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.
21.1 [Repealed, SOR/2019-176, s. 13]
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.
- SOR/96-335, s. 11
- SOR/2019-176, s. 13
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.
22.1 [Repealed, SOR/2019-176, s. 13]
22.2 [Repealed, SOR/2019-176, s. 13]
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.
- SOR/96-335, s. 12
- SOR/2019-176, s. 13
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.
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.
- SOR/2019-176, s. 13
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.
Table of Contents
- Date modified: