Air Transportation Regulations

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.