Air Transportation Regulations

84 (1) Notwithstanding section 8.2, an air carrier may subcontract a TPC, TPNC or TGC or series thereof to a Canadian charter carrier licensee who holds a non-scheduled international licence or to a United States charter carrier licensee if

• (a) the licensee holds a non-scheduled international licence that is valid for the operation of the subcontracted charter or series of charters;

• (b) the licensee holds a Canadian aviation document that is valid for the operation of the subcontracted charter or series of charters;

• (c) the licensee imposes no additional charge or other financial obligation on the passengers or the charterer; and

• (d) the air carrier has passenger and third party liability insurance coverage for the operation of the subcontracted charter or series of charters, at least in the amounts set out in section 7,

  • (i) by means of its own policy, or

  • (ii) subject to subsection (2), by being named as an additional insured under the policy of the licensee.

(2) Where the air carrier is named as an additional insured under the policy of the licensee referred to in subsection (1), there must be a written agreement between the air carrier and the licensee to the effect that, for all charters or series of charters that are subcontracted, the licensee will hold the air carrier harmless from, and indemnify the air carrier for, all passenger and third party liabilities while passengers or cargo transported under a contract with the air carrier are under the control of the licensee.

(3) Where an air carrier subcontracts a TPC, TPNC or TGC or series thereof to a Canadian charter carrier licensee or to a United States charter carrier licensee, the air carrier is not required to

• (a) notwithstanding paragraph 18(a), furnish the services, equipment and facilities that are necessary for the purposes of the operation of the TPC, TPNC or TGC or series thereof; or

• (b) satisfy the condition set out in paragraph 18(c).