Air Transportation Regulations

8.2 (1) For the purposes of section 60 of the Act and subject to section 8.3, approval of the Agency is required before a person may provide all or part of an aircraft, with a flight crew, to a licensee for the purpose of providing an air service pursuant to the licensee’s licence and before a licensee may provide an air service using all or part of an aircraft, with flight crew, provided by another person.

(2) The licensee and the person who provides all or part of an aircraft with flight crew shall apply to the Agency for the approval at least 15 business days before the date of the first proposed flight.

(3) The application shall include the following:

• (a) in respect of the proposed air service, evidence that the appropriate licence authority, charter permit and Canadian aviation document and the liability insurance coverage referred to in subsection (4) and, where applicable, subsection (5) are in effect;

• (b) the name of the licensee;

• (c) if applicable, the name of the charterer or charterers and the charter permit number;

• (d) the name of the person providing the aircraft with flight crew;

• (e) the aircraft type to be provided;

• (f) the maximum number of seats and the cargo capacity of the aircraft to be provided and, where applicable, the maximum number of seats and the cargo capacity to be provided for use by the licensee;

• (g) the points to be served;

• (h) the frequency of service;

• (i) the period covered by the proposed air service; and

• (j) an explanation of why the use by the licensee of all or part of an aircraft with a flight crew provided by another person is necessary.

(4) The licensee shall maintain liability insurance covering injuries sustained by passengers and the death of passengers and third party liability insurance coverage for an air service for which another person provides all or part of an aircraft with flight crew, at least in the amount as determined under section 7,

• (a) by means of its own policy; or

• (b) subject to subsection (5), by being named as an additional insured under the policy of the other person and that policy must be primary and without right of contribution from any other insurance policy held by the licensee.

(5) Where the licensee is named as an additional insured under the policy of the person who is providing all or part of an aircraft with flight crew, there must be a written agreement between the licensee and the person to the effect that, for all flights for which the person provides all or part of an aircraft with flight crew, the person will hold the licensee harmless from, and indemnify the licensee for, all passenger and third party liabilities while passengers or cargo transported under contract with the licensee are under the control of the person.

(6) The licensee and the person who provides the aircraft with flight crew shall notify the Agency in writing forthwith if the liability insurance coverage referred to in subsection (4) and, where applicable, subsection (5) has been cancelled or altered in any manner that results in failure by the licensee or the person to maintain the coverage.