Air Transportation Regulations (SOR/88-58)

2.1 For the purposes of these Regulations, toll means any fare, rate or charge established by an air carrier in respect of the shipment, transportation, care, handling or delivery of passengers or goods or of any service that is incidental to those services.

2.2 For the purposes of these Regulations, passenger means a person, other than a member of the air crew, who uses an air carrier’s domestic service or international service by boarding the air carrier’s aircraft pursuant to a valid contract or arrangement.

PART IGeneral

Air Services excluded from the Application of Part II of the Act

• 3 (1) Part II of the Act does not apply in respect of any of the following air services that are in addition to the air services set out in subsection 56(2) of the Act:

  • (a) [Repealed, SOR/2019-176, s. 2]

  • (b) [Repealed, SOR/2019-176, s. 2]

  • (c) [Repealed, SOR/2019-176, s. 2]

  • (d) [Repealed, SOR/2019-176, s. 2]

  • (e) [Repealed, SOR/2019-176, s. 2]

  • (f) [Repealed, SOR/2019-176, s. 2]

  • (g) [Repealed, SOR/2019-176, s. 2]

  • (h) air cushion vehicle services;

  • (i) transportation services for the retrieval of human organs for human transplants;

  • (j) aircraft demonstration services;

  • (k) external helitransport services;

  • (l) [Repealed, SOR/2019-176, s. 2]

  • (m) hot air balloon services.

  • (n) [Repealed, SOR/2019-176, s. 2]

  • (o) [Repealed, SOR/2019-176, s. 2]

• (2) An operator of an air service referred to in subsection (1) or in subsection 56(2) of the Act who carries on board an aircraft persons who are not part of the air crew but who are required for the conduct of the air service is exempt from having to obtain a domestic licence or a non-scheduled international licence for the transportation of those persons.

Classification of Aircraft

• 4 (1) The following classes of aircraft that may be operated by a Canadian air carrier under a domestic licence, under a scheduled international licence or under a non-scheduled international licence are hereby established:

  • (a) small aircraft;

  • (b) medium aircraft;

  • (c) large aircraft; and

  • (d) all-cargo aircraft.

• (2) Where an air carrier holds a licence that authorizes the operation of an air service using a class of aircraft established by subsection (1), that air carrier and that licence shall be assigned the same designation as that of the class of aircraft.

Classification of Air Services

• 5 (1) The following classes of air services that may be operated under a domestic licence are hereby established:

  • (a) domestic service, small aircraft;

  • (b) domestic service, medium aircraft;

  • (c) domestic service, large aircraft; and

  • (d) domestic service, all-cargo aircraft.

• (2) The following classes of air services that may be operated under a scheduled international licence are hereby established:

  • (a) with respect to services operated by a Canadian air carrier,

    • (i) scheduled international service, small aircraft,

    • (ii) scheduled international service, medium aircraft,

    • (iii) scheduled international service, large aircraft, and

    • (iv) scheduled international service, all-cargo aircraft; and

  • (b) with respect to services operated by a non-Canadian air carrier, scheduled international service.

• (3) The following classes of air services that may be operated under a non-scheduled international licence are hereby established:

  • (a) with respect to services operated by a Canadian air carrier,

    • (i) non-scheduled international service, small aircraft,

    • (ii) non-scheduled international service, medium aircraft,

    • (iii) non-scheduled international service, large aircraft, and

    • (iv) non-scheduled international service, all-cargo aircraft; and

  • (b) with respect to services operated by a non-Canadian air carrier, non-scheduled international service.

• (4) Where an air carrier holds a licence that authorizes the operation of an air service of a class established by subsection (1), (2) or (3), that air carrier and that licence shall be assigned the same designation as that of the class of air service.

Liability Insurance

6 In section 7 and Schedule I, “passenger seat” means a seat on board an aircraft that may be permanently occupied by a passenger for the period during which the aircraft is being used for a domestic service or an international service.

• 7 (1) No air carrier shall operate a domestic service or an international service unless, for every accident or incident related to the operation of that service, it has

  • (a) liability insurance covering injuries sustained by passengers while on board the aircraft engaged in the service or while embarking or disembarking the aircraft or death of passengers in an amount that is not less than the amount determined by multiplying $595,000, adjusted in accordance with section 7.1, by the number of passenger seats on board the aircraft engaged in the service; and

  • (b) third party liability insurance in an amount that is not less than

    • (i) where the MCTOW of the aircraft engaged in the service is not greater than 3 402 kg, $1,985,000, adjusted in accordance with section 7.1,

    • (ii) where the MCTOW of the aircraft engaged in the service is greater than 3 402 kg but not greater than 8 165 kg, $3,970,000, adjusted in accordance with section 7.1, and

    • (iii) where the MCTOW of the aircraft engaged in the service is greater than 8 165 kg, an initial amount of $3,970,000, adjusted in accordance with section 7.1, plus an amount, determined by multiplying $655, adjusted in accordance with section 7.1, by the number of kilograms, rounded to the nearest whole number, by which the MCTOW of the aircraft exceeds 8 165 kg.

• (2) The insurance coverage required by paragraph (1)(a) need not extend to any passenger who is an employee of an air carrier if workers’ compensation legislation governing a claim for damages against that air carrier by the employee is applicable.

• (3) No air carrier shall take out liability insurance to comply with subsection (1) that contains an exclusion or waiver provision reducing insurance coverage for any accident or incident below the applicable minima determined pursuant to that subsection, unless that provision

  • (a) consists of standard exclusion clauses adopted by the international aviation insurance industry dealing with

    • (i) war, hijacking and other perils,

    • (ii) noise and pollution and other perils, or

    • (iii) aviation radioactive contamination;

  • (b) [Repealed, SOR/2019-176, s. 3]

  • (c) is to the effect that the insurance does not apply to liability assumed by the air carrier under any contract or agreement unless such liability would have attached to the air carrier even in the absence of such contract or agreement; or

  • (d) is to the effect that the entire policy shall be void if the air carrier has concealed or misrepresented any material fact or circumstance concerning the insurance or the subject thereof or if there has been any fraud, attempted fraud or false statement by the air carrier touching any matter relating to the insurance or the subject thereof, whether before or after a loss.

• (4) An air carrier may have a comprehensive single limit liability coverage where liability risks are covered by a single policy or a combination of primary and excess policies, but no single limit liability coverage of that air carrier shall be for an amount that is less than the applicable combined insurance minima determined pursuant to paragraphs (1)(a) and (b).

• 7.1 (1) The amount set out in paragraph 7(1)(a) by which the number of passenger seats on board the aircraft is multiplied is adjusted every five years starting on the day on which this section comes into force according to the following formula rounded to the nearest $5,000:

  A (B/C)

  where

  A

  is $595,000;

  B

  is the Consumer Price Index for the calendar year that is two years before the year in which the adjustment is made; and

  C

  is the Consumer Price Index for 2017.

• (2) The amount of money set out in subparagraph 7(1)(b)(i) is adjusted every five years starting on the day on which this section comes into force according to the following formula rounded to the nearest $5,000:

  A (B/C)

  where

  A

  is $1,985,000;

  B

  is the Consumer Price Index for the calendar year that is two years before the year in which the adjustment is made; and

  C

  is the Consumer Price Index for 2017.

• (3) The amount of money set out in subparagraph 7(1)(b)(ii) is adjusted every five years starting on the day on which this section comes into force according to the following formula rounded to the nearest $5,000:

  A (B/C)

  where

  A

  is $3,970,000;

  B

  is the Consumer Price Index for the calendar year that is two years before the year in which the adjustment is made; and

  C

  is the Consumer Price Index for 2017.

• (4) The initial amount of money set out in subparagraph 7(1)(b)(iii) is adjusted every five years starting on the day on which this section comes into force according to the following formula rounded to the nearest $5,000:

  A (B/C)

  where

  A

  is $3,970,000;

  B

  is the Consumer Price Index for the calendar year that is two years before the year in which the adjustment is made; and

  C

  is the Consumer Price Index for 2017.

• (5) The amount of money set out in subparagraph 7(1)(b)(iii) by which the number of kilograms of the MCTOW of the aircraft that exceeds 8 165 kg is multiplied is adjusted every five years starting on the day on which this section comes into force according to the following formula rounded off to the nearest $5:

  A (B/C)

  where

  A

  is $655;

  B

  is the Consumer Price Index for the calendar year that is two years before the year in which the adjustment is made; and

  C

  is the Consumer Price Index for 2017.

7.2 For the purposes of section 7.1,

• (a) a reference to the Consumer Price Index for any 12-month period means the average of the Consumer Price Index for Canada, as published by Statistics Canada under the authority of the Statistics Act, for each month in that 12-month period;

• (b) if at any time the Consumer Price Index for Canada is adjusted to reflect a new time basis, a corresponding adjustment is to be made in the Consumer Price Index for any 12-month period that is used for the purpose of calculating the amounts under section 7.1; and

• (c) if at any time the Consumer Price Index for Canada is adjusted to reflect a new content basis, that adjustment does not affect the operation of section 7.1.