Air Transportation Regulations (SOR/88-58)

24. [Repealed, SOR/96-335, s. 13]

• 24.1 (1) No air carrier shall operate a CPC unless the air carrier

  • (a) holds a non-scheduled international licence valid for the proposed CPC; and

  • (b) has been issued a program permit or is deemed to have been issued a small carrier charter permit in respect of the CPC, by the Agency.

• (2) An air carrier who proposes to operate a CPC or a series of CPCs that use aircraft having an MCTOW greater than 35,000 pounds (15,900 kg) shall apply to the Agency for a program permit in respect of the CPC or series of CPCs.

• (3) The Agency shall not consider an application referred to in subsection (2) unless the air carrier has a financial guarantee with a Canadian financial institution, in a standard form provided by the Agency, that provides that any advance payment in respect of the CPC is fully protected from the time it is received by the air carrier from the charterer.

• (4) An air carrier referred to in subsection (2) shall, at least 30 days before the cancellation or termination of a financial guarantee referred to in subsection (3), file a copy of a new or renewed, as the case may be, financial guarantee with the Agency.

24.2 A financial guarantee referred to in subsection 24.1(3) shall specify

• (a) that any amount to which a charterer is entitled under the charter contract for unperformed CPC transportation be fully and promptly refunded by the Canadian financial institution that issued the guarantee;

• (b) that any amount refunded in accordance with paragraph (a) be deposited in a trust account in the name and for the benefit of the charterer;

• (c) that any money withdrawn from the trust account be used only for the payment of replacement air transportation or refunds to the proposed users of the CPC, either directly or through the appropriate travel agent or provincial authority;

• (d) that the financial institution that issued the financial guarantee will not amend or cancel the financial guarantee without first giving 45 days notice to the Agency; and

• (e) the name of the province under the laws of which the financial guarantee is to be interpreted.

• 25. (1) An application, and any application to amend a previous application, for a program permit for a CPC shall be filed with the Agency by the air carrier that is to perform the outbound portion of the CPC, as soon as the charter contract is signed or amended by the air carrier and the charterer and in any event not less than 30 days before the commencement of the CPC.

• (2) Every application for a program permit to operate a CPC shall be made in writing and the applicant shall

  • (a) submit therewith a copy of the executed charter contract;

  • (b) furnish

    • (i) a detailed description of the CPC event, including

      • (A) its location, duration and character,

      • (B) the names of its organizers and sponsors, and

      • (C) the charge or other contribution, if any, to be made for attendance at, or participation in, the event, or

    • (ii) the particulars of the CPC educational program as concurred in by the appropriate school authorities and written evidence of their concurrence;

  • (c) in the case of a CPC relating to a CPC event, attach samples of any documentation or other material from any source promoting or describing the CPC event or, if there is no such material, provide evidence showing that the CPC event will take place;

  • (d) specify how the charter price stated in the charter contract referred to in paragraph (a) was calculated;

  • (e) provide a statement by each charterer showing

    • (i) the name, address, nationality and nature of business of the charterer,

    • (ii) where the charterer is a company, the name, address and nationality of each director of the company,

    • (iii) a summary of the charterer’s experience relating to transportation activities including, where applicable, particulars of the charterer’s membership in travel organizations and of the licensing or registration of the charterer under any law of a province requiring travel agents to be licensed or registered, and

    • (iv) evidence of the financial responsibility of the charterer, including

      • (A) in respect of the charterer’s latest financial year, financial statements duly approved by the board of directors or other executive body, together with the auditor’s report,

      • (B) if the date of the receipt by the Agency, pursuant to paragraph (a), of the copy of the executed charter contract is more than six months after the end of the charterer’s financial year, a copy of the current financial statements signed by a person duly authorized by the charterer,

      • (C) a letter from the charterer’s bank indicating the extent of the charterer’s line of credit, and

      • (D) a description of the arrangements made by the charterer to ensure the protection of moneys paid to the charterer in respect of CPCs during the period in which those moneys remain in the charterer’s possession;

  • (e.1) provide a statement by each charterer, signed and witnessed, certifying that the charterer is in possession of

    • (i) in the case of a letter of credit, the original of the letter of credit applicable in respect of the CPC, or

    • (ii) in the case of any other type of financial guarantee, a copy of the financial guarantee applicable in respect of the CPC;

  • (f) establish

    • (i) the adequacy of the arrangements referred to in clause (e)(iv)(D),

    • (ii) the financial ability of the charterer to perform the contract, and

    • (iii) that the charterer has a principal place of business in Canada or, if the charterer is a corporation, that it is registered under the laws of Canada or any province; and

  • (g) provide a copy of the financial guarantee applicable in respect of the CPC.

• (3) [Repealed, SOR/92-709, s. 3]