Vol. 145, No. 14 — April 2, 2011

ARCHIVED — Regulations Amending the Air Transportation Regulations and the Canadian Transportation Agency Designated Provisions Regulations

Statutory authority

Canada Transportation Act

Sponsoring agency

Canadian Transportation Agency

REGULATORY IMPACT ANALYSIS STATEMENT

(This statement is not part of the Regulations.)

Issue and objectives

In its role as an economic regulator and aeronautical authority, the Canadian Transportation Agency (Agency) establishes, administers and enforces financial tests, insurance and operating requirements and standards that govern the Canadian air transportation market through the applicable legislative provisions, including regulations.

The Air Transportation Regulations (ATR) were published in 1988 and, despite selective amendments in the past 20 years, the ATR are in need of a major updating so that they conform to the Transport Canada Policy for International Passenger Charter Air Services and the Cabinet Directive on Streamlining Regulation. Amendments are also needed to ensure that the ATR address evolving air transportation industry trends such as flight partnerships, advertising on aircraft, and communications technology.

The objectives of the proposed amendments to the ATR are to

  1. reduce regulatory and administrative costs to carriers;
  2. reflect marketplace realities so that the ATR are relevant to today’s modern aviation industry;
  3. make the ATR consistent with Canadian government policy, and an international agreement that have come into effect;
  4. increase transparency to licensees; and
  5. update regulatory language and style to conform to established standards and enable the filing of electronic documents.

Description and rationale

The Agency is proposing to amend the ATR in multiple phases rather than attempting to complete an “all at once” revision of all seven parts of the ATR.

In Phase 1 of the ATR amendments, the Agency is proposing to amend Parts I and II which deal with financial requirements, provision of aircraft with flight crew, and conditions of domestic and international licences. These sections are a necessary precursor to future steps.

The sections on air services excluded from the application of Part II of the Canada Transportation Act [Act] (section 3) and on liability insurance (section 7) will not be part of this amendment phase as they have potentially high stakeholder interest and complexity. They warrant more analysis and extensive consultation both within government and with stakeholders, and will be dealt with in a separate process. As well, several sections of the ATR will remain unchanged.

1. Reducing regulatory and administrative costs to carriers

Proposed amendments to the ATR would reduce regulatory and administrative costs to carriers by

  • (a) reducing by 1/3 the number of days in advance that licensees are required to apply for the provision of aircraft with flight crew. These amendments propose to reduce the number of days to 30 from 45. Presently, when a licensee wants to use an aircraft with flight crew provided by another person, they have to apply for approval at least 45 days before the first planned flight. If they do not meet the 45-day deadline, licensees then have to apply for an exemption. Carriers regularly complete their applications close to the start date of their flight program. If the regulations change to 30 days notice, a significant number of exemptions could be eliminated.
  • (b) removing the redundant requirement for licence holders to file an annual declaration with the Agency. Presently, the ATR call for licence holders to declare in writing each year that they continue to have all of the qualifications needed to keep their licences valid. For example, domestic licence holders have to declare that they are Canadian, that they hold a valid Canadian aviation document and that they have the appropriate liability insurance coverage. Removing the need to file an annual declaration would not result in the failure of licence holders to have all of the necessary qualifications. There are other existing provisions which ensure that licence holders continue to meet the requirements of the licence, such as section 82 of the Act, which requires licence holders to notify the Agency of changes which would affect their prescribed liability insurance coverage or their status as Canadians. Furthermore, the Agency would retain its powers to require carriers to provide this information for periodic air inspections or upon request. Finally, the Agency receives notification from Transport Canada when the Canadian aviation document of a carrier is suspended or cancelled, and licensees are filing with the Agency a standard form confirming that they have the required insurance coverage.

2. Reflecting marketplace realities so that the ATR are relevant to today’s modern aviation industry

Proposed amendments to the ATR would reflect marketplace realities so that the ATR are relevant to today’s modern aviation industry by removing government restrictions regarding advertising on the aircraft. Licensees would no longer need to apply for exemptions related to what is advertised/painted on their aircraft. Currently, if a licensee wishes to paint a name or logo on their aircraft, other than a name included on their licences, they must apply to the Agency for an exemption from paragraph 18(c). The Agency is of the opinion that the painting of an aircraft is a business decision. Amendments to the ATR would clearly state that the ATR would not be contravened by advertising on the aircraft, and this would apply to domestic and international licensees.

3. Making the ATR consistent with Canadian government policy and an international agreement

Proposed amendments to the ATR would make them consistent with Canadian government policy and an international agreement that have come into effect by

  • (a) introducing two new terms to bring the ATR in alignment with the Policy for International Passenger Charter Air Services, namely, passenger resaleable charters (PRC) and passenger non-resaleable charters (PNC).
    These definitions of charter types are new in the way that they apply to both transborder and international charters, without geographic restriction. The definition of PRC would replace four definitions: advance booking charter (ABC), inclusive tour charter (ITC), ABC/ITC, common purpose charter (CPC) and transborder passenger charter (TPC).
    The definition of PNC would eventually replace entity charters and transborder passenger non-resaleable charters, which would be addressed in Phase 2 when amendments to Parts III and IV on International charters and transborder charters would be proposed.
    While these two new and simplified charter definitions would be introduced for various provisions in Parts I and II, the current charter definitions would remain in effect for Parts III and IV of the existing ATR, until such time as Parts III and IV are amended.
  • (b) meeting its obligations under the Canada–United States Air Transport Agreement (Agreement) signed in 2007. The current Regulations permit two Canadian licensees to enter into arrangements for the provision of aircraft with flight crew without having to seek the approval of the Agency. This amendment would also exclude transborder licensees from having to get the Agency’s approval for these arrangements. The exclusion would be expanded to arrangements between two United States citizens who are licensees, and between a Canadian and a United States citizen who are both licensees, for air services between Canada and the United States. This amendment would establish fair and equitable treatment of Canadian and U.S. licensees in accordance with Articles 5 (Fair competition) and 11 (Commercial opportunities) of the Agreement.

4. Increasing transparency to licensees

Proposed amendments to the ATR would increase transparency to licensees by

  • (a) stating what must be filed by a licensee when applying for the provision of aircraft with flight crew. Presently, some of the required information is detailed in an Agency bulletin.
    Given the evolution of the aviation marketplace, specifically the increased use of code sharing and wet leasing of aircraft, the Agency is specifying in the ATR that parties must submit their commercial code-sharing agreements and additional documentation demonstrating compliance with insurance requirements.
    For ease of reference, all requirements would be located in the ATR in one place, making the application process easier to understand.
  • (b) removing the requirement for licensees to meet the financial requirements when applying for a licence to operate a domestic air service using medium aircraft when they already hold a licence to operate a domestic air service using a large aircraft.

5. Updating regulatory language and style to conform to established standards and enable the filing of electronic documents

Proposed amendments to the ATR would improve the clarity of the regulations and ensure consistency between English and French regulatory texts. Improved clarity and consistency would reduce the likelihood of misinterpretation for all stakeholders, including industry, government and Canadians, and would ensure that the interpretation of regulatory provisions is consistent with the intended scope of the ATR.

The regulatory language in Parts I and II would also be updated to allow applicants and licensees to file required documents in electronic form.

The proposed amendments are administrative in nature, and would not result in any significant changes to the ATR, and would not result in any incremental costs for the industry, the public, or the Government.

Consultation

The Agency carried out face-to-face consultations with key industry stakeholders on the above proposed changes to Parts I and II of the ATR between April 28 and June 10, 2010. As well, an invitation for comments and a consultation document outlining proposed changes were made available to the public on the Agency’s Web site.

All stakeholders were in agreement with the proposals and no negative comments were received concerning the proposed amendments to Parts I and II.

Implementation, enforcement and service standards

Compliance with the ATR and a program of effective enforcement are important elements to the success of the regulatory regime. The Agency can enforce the ATR using its authority under the Act.

The Canadian Transportation Agency Designated Provisions Regulations (DPR) set out the provisions of the ATR for which a contravention can be subject to an administrative monetary penalty. The Agency may impose fines of up to $5,000 for an individual and $25,000 for a corporation where either has been found guilty of an offence as a result of contravening these designated provisions.

Changes to the ATR in Phase 1 would result in no new designated provisions and no increases in the amount of penalties. Where the regulatory requirements have been removed, corresponding penalties would be removed. The DPR would be amended to reflect the re-numbering of sections in Parts I and II of the ATR.

Contact

Greg Eamon
Manager
Regulatory Projects
International Agreements and Tariffs Directorate
Industry Regulation and Determinations Branch
Canadian Transportation Agency
15 Eddy Street, 18th Floor
Gatineau, Quebec
K1A 0N9
Telephone: 819-953-9795
Fax: 819-994-0289

PROPOSED REGULATORY TEXT

Notice is hereby given that the Canadian Transportation Agency, pursuant to subsection 60(1), section 61, subsections 69(1), 71(1), 73(1) and 74(1), section 86 (see footnote a) and subsection 177(1) (see footnote b) of the Canada Transportation Act (see footnote c) and subject to the approval of the Governor in Council, proposes to make the annexed Regulations Amending the Air Transportation Regulations and the Canadian Transportation Agency Designated Provisions Regulations.

Interested persons may make representations with respect to the proposed Regulations within 30 days after the date of publication of this notice. All such representations must cite the Canada Gazette, Part I, and the date of publication of this notice, and be addressed to Greg Eamon, Manager, Regulatory Projects, International Agreements and Tariffs Directorate, Industry Regulation and Determinations Branch, Canadian Transportation Agency, 15 Eddy Street, 18th Floor, Gatineau, Quebec, K1A 0N9 (tel.: 819-953-9795; fax: 819-994-0289; email: greg.eamon@otc-cta. gc.ca).

Ottawa, March 24, 2011

JURICA ČAPKUN
Assistant Clerk of the Privy Council

REGULATIONS AMENDING THE AIR TRANSPORTATION REGULATIONS AND THE CANADIAN TRANSPORTATION AGENCY DESIGNATED PROVISIONS REGULATIONS

AIR TRANSPORTATION REGULATIONS

1. The long title of the Air Transportation Regulations (see footnote 1) is replaced by the following:

AIR TRANSPORTATION REGULATIONS

2. Section 1 of the Regulations and the heading before it are repealed.

3. The heading before section 2 of the French version of the Regulations is replaced by the following:

DÉFINITIONS ET INTERPRÉTATION

4. (1) The portion of section 2 of the Regulations before the definition “ABC/ITC” is replaced by the following:

2. The following definitions apply in these Regulations.

(2) The definitions “flight crew”, “goods” and “passenger” in section 2 of the Regulations are repealed.

(3) Section 2 of the French version of the Regulations is amended by replacing “capacité maximale certifiée” with “capacité maximale homologuée” in the definitions “aéronef moyen”, “capacité maximale certifiée”, “gros aéronef” and “petit aéronef”.

(4) The reference to “(capacité maximale certifiée)” at the end of the definition “certificated maximum carrying capacity” in section 2 of the English version of the Regulations is replaced by “(capacité maximale homologuée)”.

(5) Section 2 of the Regulations is amended by adding the following in alphabetical order:

“aircraft with flight crew” means all or part of an aircraft, with a flight crew; (version anglaise seulement)

“passenger non-resaleable charter” or “PNC” means a one-way or round-trip charter flight that originates in Canada, is destined for a point in another country and is operated under one or more charter contracts to carry passengers or goods or both that is entered into between one or more air carriers and one or more charterers and under which the capacity of the aircraft is not chartered for resale to the public; (vol affrété de passagers non revendable ou VAN)

“passenger resaleable charter” or “PRC” means a one-way or round-trip charter flight that originates in Canada, is destined for a point in another country and is operated under one or more charter contracts to carry passengers that is entered into between one or more air carriers and one or more charterers and under which the passenger seating capacity of the aircraft is chartered for resale to the public; (vol affrété de passagers revendable ou VAR)

5. The Regulations are amended by adding the following after section 2:

2.1 For greater certainty, in these Regulations “goods” includes animals.

2.2 The following definitions apply in these Regulations and Part II of the Act.

“flight crew” means a person who is assigned to act as a pilot or flight engineer of an aircraft during a flight; (équipage)

“passenger” means a person who is carried on board an aircraft under a contract or arrangement, but does not include a member of the air crew; (passager)

6. The Regulations are amended by adding the following before the heading “Air Services Excluded from the Application of Part II of the Act” before section 3:

ADVERTISING ON AN AIRCRAFT

2.3 Despite any other provision of these Regulations, a person does not contravene these Regulations by advertising on an aircraft.

7. The Regulations are amended by adding the following after section 3:

EXEMPTION

3.1 An air carrier that is not Canadian is exempt from the requirement in section 57 of the Act to hold a licence issued under Part II of the Act if the carrier disembarks passengers or unloads goods in Canada as a result of unforeseen circumstances beyond the carrier’s control.

8. Subsection 4(2) of the Regulations is repealed.

9. Subsection 5(4) of the Regulations is repealed.

10. The Regulations are amended by adding the following after section 5:

PART II

DOMESTIC AND INTERNATIONAL LICENCES AND REDUCTION OF DOMESTIC SERVICES

DOMESTIC LICENCES

5.1 (1) For the purpose of section 61 of the Act, the liability insurance coverage is that required by section 7 and the financial requirements are those set out in section 8.

(2) In an application for a domestic licence, an applicant establishes that they have the prescribed liability insurance coverage by filing a certificate of insurance in the form set out in Schedule I.

SCHEDULED INTERNATIONAL LICENCES

5.2 (1) For the purpose of section 69 of the Act, the liability insurance coverage is that required by section 7 and the financial requirements are those set out in section 8.

(2) In an application for a scheduled international licence, an applicant establishes that they have the prescribed liability insurance coverage by filing a certificate of insurance in the form set out in Schedule I.

NON-SCHEDULED INTERNATIONAL LICENCES

5.3 (1) For the purpose of section 73 of the Act, the liability insurance coverage is that required by section 7 and the financial requirements are those set out in section 8.

(2) In an application for a non-scheduled international licence, an applicant establishes that they have the prescribed liability insurance coverage by filing a certificate of insurance in the form set out in Schedule I.

11. Sections 8 to 10 of the Regulations are replaced by the following:

FINANCIAL REQUIREMENTS

8. (1) In this section, “applicant” means

  • (a) a Canadian, or a person exempted under section 62 of the Act from the requirement to establish that they are Canadian, who applies for a domestic licence authorizing the operation of a domestic service, medium aircraft or a domestic service, large aircraft or the reinstatement of such a licence that has been suspended for 60 days or longer; or
  • (b) a Canadian who applies for one of the following licences or the reinstatement of such a licence that has been suspended for 60 days or longer:
    • (i) a scheduled international licence authorizing the operation of a scheduled international service, medium aircraft or a scheduled international service, large aircraft, or
    • (ii) a non-scheduled international licence authorizing the operation of a non-scheduled international service, medium aircraft or a non-scheduled international service, large aircraft.

(2) An applicant for a licence to operate an air service is required, in respect of the service specified in the application, to file with the Agency a statement of the start-up costs that have been incurred by the applicant in the 12 months preceding the application, an estimate of any additional start-up costs that the applicant expects to incur and an estimate of the operating and overhead costs for a 90-day period of operation. The applicant is required to establish that

  • (a) the statement of start-up costs is complete and accurate and the estimate of additional start-up costs is reasonable;
  • (b) the estimate of the operating and overhead costs is reasonable and is based on use of the aircraft solely for the specified air service under conditions of optimum demand, which use shall be no less than that which is necessary for the service to be profitable;
  • (c) the applicant has acquired or can acquire funds in an amount at least equal to the total costs included in the statement and the estimates;
  • (d) the funds are not encumbered and are comprised of liquid assets that have been or can be acquired by way of a line of credit issued by a financial institution or by way of a similar financial instrument;
  • (e) the terms under which the funds have been or can be acquired are such that the funds are available and will remain available to finance the air service;
  • (f) subject to subsection (4), if the applicant is a corporation, at least 50% of the funds required by paragraph (c) have been acquired by way of capital stock that has been issued and paid for and cannot be redeemed for a period of at least one year after the date of issuance or reinstatement of the licence; and
  • (g) subject to subsection (4), if the applicant is a proprietorship or partnership, at least 50% of the funds required by paragraph (c) have been acquired by way of the proprietor’s or partners’ capital that has been invested in the proprietorship or partnership and cannot be withdrawn for a period of at least one year after the date of issuance or reinstatement of the licence.

(3) An applicant whose current audited financial statements, prepared in accordance with generally accepted accounting principles recognized in Canada, disclose a shareholders’, proprietor’s or partners’ deficit is also required to establish that

  • (a) in addition to the funds required by paragraph (2)(c), they have acquired funds in an amount at least equal to the deficit disclosed in the financial statements;
  • (b) if the applicant is a corporation, the funds have been acquired from capital stock that has been issued and paid for and cannot be redeemed for a period of at least one year after the date of issuance or reinstatement of the licence; and
  • (c) if the applicant is a proprietorship or partnership, the funds have been acquired by way of the proprietor’s or partners’ capital that has been invested in the proprietorship or partnership and cannot be withdrawn for a period of at least one year after the date of issuance or reinstatement of the licence.

(4) In the case of an applicant whose current audited financial statements, prepared in accordance with generally accepted accounting principles recognized in Canada, disclose shareholders’, proprietor’s or partners’ equity, the amount of capital stock or proprietor’s or partners’ capital required by paragraph (2)(f) or (g) is decreased by the amount of the equity disclosed in the financial statements.

(5) The financial requirements set out in this section do not apply to an applicant for a licence to operate an air service using medium aircraft if, at the date of issuance or reinstatement of the licence, the applicant operates one of the following air services:

  • (a) in the case of an application for a domestic licence, a service using medium or large aircraft under a scheduled or a non-scheduled international licence or large aircraft under a domestic licence;
  • (b) in the case of an application for a scheduled or a non-scheduled international licence, a service using medium or large aircraft under a scheduled or a non-scheduled international licence or medium or large aircraft under a domestic licence in respect of which the applicant has complied with those requirements within 12 months before the date of issuance or reinstatement.

(6) The financial requirements set out in this section do not apply to an applicant for a licence to operate an air service using large aircraft if, at the date of issuance or reinstatement of the licence, the applicant operates one of the following air services:

  • (a) in the case of an application for a domestic licence, a service using large aircraft under a scheduled or a non-scheduled international licence; or
  • (b) in the case of an application for a scheduled or a non-scheduled international licence, a service using large aircraft under a scheduled or a non-scheduled international licence or large aircraft under a domestic licence in respect of which the applicant has complied with those requirements within 12 months before the date of issuance or reinstatement.

(7) The financial requirements set out in this section do not apply to an applicant for the renewal of a licence referred to in subsection (1).

PROVISION OF AIRCRAFT WITH FLIGHT CREW

9. (1) For the purposes of section 60 of the Act, the approval of the Agency is required before

  • (a) a person may provide an aircraft with flight crew to a licensee for use in operating an air service under the licensee’s licence; and
  • (b) a licensee may operate an air service using an aircraft with flight crew provided by another person.

(2) The licensee and the person who provides the aircraft with flight crew shall apply to the Agency for the approval at least 30 days before the proposed flight or series of flights.

(3) The application shall include the following information:

  • (a) the name of the licensee;
  • (b) the name of the person who is providing the aircraft with flight crew;
  • (c) a statement that the licensee holds a licence to operate the proposed air service, as well as any permit required by Part III or IV, and that the person who is providing the aircraft with flight crew holds a Canadian aviation document in respect of the proposed service;
  • (d) the aircraft type to be provided, its maximum number of seats and its maximum capacity for the carriage of goods;
  • (e) if the proposed service is a scheduled international service involving a blocked-space arrangement, the maximum number of seats and the maximum capacity for the carriage of goods to be provided for use by the licensee;
  • (f) the points to be served;
  • (g) the period covered by the proposed service;
  • (h) the frequency of the proposed service;
  • (i) the reasons why the licensee must use an aircraft with flight crew provided by another person;
  • (j) a copy of the agreement under which the person is to provide the licensee with an aircraft with flight crew;
  • (k) a copy of the certificate of insurance that establishes that the applicant has the liability insurance coverage referred to in subsection (4); and
  • (l) if the person does not hold a licence issued by the Agency to operate the proposed service, a copy of the person’s Canadian aviation document in respect of that service.

(4) A licensee who proposes to operate an air service using an aircraft with flight crew provided by another person shall have the liability insurance coverage for the proposed air service that is required by section 7 either

  • (a) under the licensee’s own aircraft accident liability insurance policy, or
  • (b) as an additional insured on the person’s aircraft accident liability insurance policy.

(5) A licensee who proposes to operate an air service using an aircraft with flight crew provided by another person and has the liability insurance coverage referred to in paragraph (4)(a) shall file with the Agency a certificate of insurance certifying that the insurer agrees to extend the passenger and public liability insurance coverage provided under the licensee’s policy to the air service to be operated on the licensee’s behalf by the other person.

(6) A licensee who proposes to operate an air service using an aircraft with flight crew provided by another person and has the liability insurance coverage referred to in paragraph (4)(b) shall file with the Agency — or the person shall on the licensee’s behalf — a certificate of insurance that certifies the person has the insurance coverage that is required by section 7 and includes the following endorsements:

  • (a) any liability incurred by the person, whether by reason of the person’s own act or omission or on account of the agreement to indemnify required by subsection (7), is covered under the person’s policy, subject to the policy’s limits of liability;
  • (b) the licensee is included as an additional insured under the person’s policy;
  • (c) the coverage that the licensee is provided with as an additional insured operates in all respects as if a separate policy had been issued covering the person and the licensee, subject to the policy’s limits of liability;
  • (d) the coverage that the licensee is provided with as an additional insured is primary and without right of contribution from any other insurance that may be available to the licensee; and
  • (e) the coverage that the licensee is provided with as an additional insured may not be invalidated by any act or omission of another person — including any misrepresentation or non-disclosure — that results in a breach of a term, condition or warranty of the policy, unless the licensee has caused, contributed to or knowingly condoned the act or omission.

(7) A licensee who is included as an additional insured on a liability insurance policy referred to in paragraph (4)(b) shall include in the agreement referred to in paragraph (3)(j) the term or condition that, for all flights for which the person provides an aircraft with flight crew, the person will hold the licensee harmless from, and indemnify the licensee for, all passenger and public liabilities that arise as a result of passengers or goods being transported under contract with the licensee, except to the extent that the liabilities arise from the gross negligence or wilful misconduct or, in the Province of Quebec, the gross or intentional fault of the licensee or the licensee’s directors, officers, employees, agents or mandataries, successors or assigns.

(8) In addition to a licensee’s obligation under section 82 of the Act, a person who provides an aircraft with flight crew shall notify the Agency electronically or in writing, without delay, if the liability insurance coverage referred to in paragraph (4)(b) or the indemnification referred to in subsection (7) is suspended, cancelled or altered, or is intended to be suspended, cancelled or altered, in a way that would result in the failure of the person to maintain the required coverage or indemnity.

10. (1) In this section, a “citizen of the United States” has the same meaning as in Part 204, title 14, of the United States Code of Federal Regulations.

(2) The approval referred to in subsection 9(1) is not required if

  • (a) the proposed air service is
    • (i) a domestic service and the person who is providing the aircraft with flight crew holds a licence to operate the proposed service, or
    • (ii) a service between Canada and the United States and the licensee is a Canadian or a citizen of the United States and the person who is providing the aircraft with flight crew is a Canadian or a citizen of the United States and holds a licence to operate the proposed service; and
  • (b) the licensee holds a licence to operate the proposed service, as well as any permit required by Part III or IV, has the liability insurance coverage referred to in subsection 9(4) and, if applicable, has complied with subsection 9(7).

(3) The approval referred to in subsection 9(1) is not required if

  • (a) the proposed air service is an international service in respect of which a temporary and unforeseen circumstance has occurred that necessitates the use of an aircraft with flight crew provided by another person for a period of not more than two weeks;
  • (b) the licensee holds a licence to operate the proposed service, as well as any permit required by Part III or IV;
  • (c) the licensee has notified the Agency of the proposed flight or series of flights in accordance with subsection (4) and has received an acknowledgment of the notification; and
  • (d) in the case where the person who is providing the aircraft with flight crew does not hold a licence issued by the Agency, the licensee has filed with the Agency, within five days after giving notification, a certificate of insurance coverage that establishes that they have the liability insurance coverage referred to in subsection 9(4) and, if applicable, a copy of the part of the agreement containing the indemnification required by subsection 9(7).

(4) The notification referred to in paragraph (3)(c) shall be given before the flight or series of flights. It must contain

  • a) a description of the temporary and unforeseen circumstance and the reasons why use of an aircraft with flight crew provided by another person is necessary;
  • (b) the name of the person who is providing the aircraft with flight crew;
  • (c) a statement that the licensee has the liability insurance coverage referred to in subsection 9(4) and, if applicable, a statement that the indemnification required by subsection 9(7) is included in the agreement between the parties;
  • (d) if the person who is providing the aircraft with flight crew does not hold a licence issued by the Agency, a statement that the person holds a Canadian aviation document;
  • (e) the aircraft type to be provided, its maximum number of seats and the maximum capacity for the carriage of goods;
  • (f) if the proposed flight or series of flights are PRC flights using large aircraft, a statement that the number of seats available for passengers on any flight originating in Canada will not be greater than the number authorized in any permit required by Part III or IV;
  • (g) the points to be served by each flight;
  • (h) the date of each flight; and
  • (i) if applicable, the licensee’s permit number.

11. If the Agency has granted the approval referred to in subsection 9(1) or if, under section 10, no approval is required, the licensee is not required

  • (a) despite paragraph 15(a), to furnish the services, equipment and facilities that are necessary for the operation of the air service; or
  • (b) to comply with the condition set out in paragraph 15(c).

12. (1) Subject to subsection (2), when a person enters into an agreement to provide a licensee with an aircraft with flight crew, the licensee shall notify the public of that agreement by identifying the person and indicating the aircraft type to be used on each flight segment to be operated by the person

  • (a) in all service schedules, timetables and computer reservation systems, in all Internet postings and other electronic displays and in any other advertising respecting the air service; and
  • (b) to each traveller
    • (i) in a communication before any reservation is made or, if the agreement is entered into after the reservation is made, as soon as possible after that,
    • (ii) on every itinerary/receipt when it is issued, and
    • (iii) in a communication that must be provided no later than at check-in at the airport.

(2) If the temporary and unforeseen circumstance that necessitates the use of an aircraft with flight crew provided by another person occurs within 72 hours before the planned departure time of a flight, the licensee is not required to comply with the requirements of paragraph (1)(a) or subparagraphs (1)(b)(i) and (ii).

12. Sections 15 to 20 of the Regulations are replaced by the following:

TERMS AND CONDITIONS OF INTERNATIONAL LICENCES

15. Every scheduled international licence and non-scheduled international licence is subject to the following terms and conditions:

  • (a) the licensee shall provide transportation in accordance with the terms and conditions of the licence and shall furnish the services, equipment and facilities that are necessary for that transportation;
  • (b) the licensee shall not make any false or misleading statement to the public about its air service or any incidental services it provides; and
  • (c) the licensee shall not operate its air service or represent itself — other than on an aircraft — as operating an air service under a name, including a corporate or trade name, that is not specified in its licence.

16. Subject to sections 142 and 143, every scheduled international licence is subject to the additional term or condition that the licensee shall operate every flight in accordance with its service schedule, except for delays due to weather, conditions affecting safety or abnormal operating conditions.

17. Every non-scheduled international licence is subject to the following additional terms and conditions:

  • (a) the licensee shall keep, for a period of at least one year, a record of each international charter flight or series of international charter flights it operates, including in the case of a PRC flight a record of any advance payment received, and on request shall immediately make its records available to the Agency; and
  • (b) in the case of a PNC flight, the licensee shall not charter an aircraft to a person who obtains payment for passengers carried at a price per passenger.

13. Subsection 84(1) of the Regulations is amended by replacing “8.2” with “9”.

14. Schedule I to the Regulations is amended by replacing “(Sections 6 and 8)” after the heading “SCHEDULE I” with “(Sections 5.1 to 5.3 and 6)”.

15. Schedule II to the Regulations is repealed.

CANADIAN TRANSPORTATION AGENCY DESIGNATED PROVISIONS REGULATIONS

16. Section 2 of the Canadian Transportation Agency Desi g nated Provisions Regulations (see footnote 2) is amended by replacing “177(a)” with “177(1)(a)”.

17. Items 19 to 24 of the schedule to the Regulations are replaced by the following:

Item

Column 1
Designated Provision

Column 2
Maximum Amount of Penalty — Corporation ($)

Column 3
Maximum Amount of Penalty — Individual ($)

19.

Subsection 9(4)

25,000

5,000

20.

Subsection 9(8)

25,000

5,000

18. Items 25 and 26 of the schedule to the Regulations are replaced by the following:

Item

Column 1
Designated Provision

Column 2
Maximum Amount of Penalty — Corporation ($)

Column 3
Maximum Amount of Penalty — Individual ($)

25.

Subsection 12(1)

10,000

2,000

19. Items 28 to 34 of the schedule to the Regulations are replaced by the following:

Item

Column 1
Designated Provision

Column 2
Maximum Amount of Penalty — Corporation ($)

Column 3
Maximum Amount of Penalty — Individual ($)

28.

Paragraph 15(a)

25,000

5,000

29.

Paragraph 15(b)

25,000

5,000

30.

Paragraph 15(c)

10,000

2,000

31.

Section 16

5,000

1,000

32.

Paragraph 17(a)

10,000

2,000

33.

Paragraph 17(b)

10,000

2,000

COMING INTO FORCE

20. These Regulations come into force on the day on which they are registered under section 6 of the Statutory Instruments Act.

[14-1-o]

Footnote a
S.C. 2007, c. 19, s. 26

Footnote b
S.C. 2007, c. 19, ss. 49(1) and (2)

Footnote c
S.C. 1996, c. 10

Footnote 1
SOR/88-58

Footnote 2
SOR/99-244