Air Transportation Regulations (SOR/88-58)

63. (1) An air carrier may utilize any space on an aircraft used for an ABC for the purposes of the transportation of the carrier’s own goods and personnel and another air carrier’s personnel or for any of those purposes with, if that space is chartered, the prior written concurrence of the charterer.

(2) [Repealed, SOR/96-335, s. 44]

64. (1) No air carrier shall operate an ABC between more than one point in Canada and more than one point outside Canada for the purpose of embarking and disembarking ABC passengers.

(2) Notwithstanding subsection (1), an air carrier may

• (a) operate the outbound portion of an ABC to a point in a foreign country and the inbound portion from a different point in the country of destination or from a point in another country to the point of origin in Canada, for the purpose of embarking and disembarking ABC passengers, if no ABC traffic is transported between the points situated outside Canada; or

• (b) operate an ABC between not more than two points in Canada and not more than two points outside Canada, for the purpose of embarking and disembarking ABC passengers, where arrangements are in existence between the Agency and the foreign aeronautical authorities having jurisdiction over ABC operations at the points outside Canada.

65. (1) The Agency shall not consider an application for a program permit to operate an ABC unless the applicant 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 ABC is fully protected from the time it is received by the applicant from the charterer.

(2) An air carrier shall, at least 30 days before the cancellation or termination of a financial guarantee referred to in subsection (1), file a copy of a new or renewed, as the case may be, financial guarantee with the Agency.

(3) A financial guarantee referred to in subsection (1) shall specify

• (a) that any amount to which a charterer is entitled under the contract for unperformed ABC 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• (c) that any money withdrawn from the trust account be used only for the payment of replacement air transportation or refunds to the proposed users of the ABC, either directly or through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.

(4) An application for a program permit made pursuant to subsection 48(1) to operate an ABC shall include

• (a) 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 ABC, or

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

• (b) a copy of the financial guarantee applicable in respect of the ABC.