Air Transportation Regulations

95 (1) On request, the Agency shall issue a charter authorization to an air carrier, that is valid for a period of up to one year, to operate a TPC or series of TPCs that use aircraft having an MCTOW greater than 35,000 pounds (15,900 kg) without the requirement to obtain a program permit for the TPC or series of TPCs if the air carrier

• (a) holds a financial guarantee that specifies the information required by subsection 91(5) and that meets the requirements of subsection 91(6) and files a copy thereof with the Agency;

• (b) files with the Agency a signed and witnessed statement by each charterer, in a form provided by the Agency, that certifies that the charterer is in possession of

  • (i) where the financial guarantee is a letter of credit, the original of the letter of credit and of all amendments thereto respecting the TPC or series of TPCs, or

  • (ii) in any other case, a copy of both the financial guarantee and all amendments thereto respecting the TPC or series of TPCs; and

• (c) files with the Agency proof that verifiable monitoring, compliance and disclosure systems situated in Canada have been instituted to enable the air carrier, during the period of validity of the charter authorization, to ensure that

  • (i) the level of protection specified in the financial guarantee is such that all advance payments are fully protected at all times, and

  • (ii) all provisions of the financial guarantee are fully complied with.

(2) The monitoring, compliance and disclosure systems referred to in paragraph (1)(c) shall not be modified in any way during the period of validity of the charter authorization without the prior written approval of the Agency, which approval shall be given if the criteria specified in paragraph (1)(c) continue to be met.

(3) During the period of validity of the charter authorization

• (a) the air carrier shall include in every charter contract, which is in force during that period, the provisions required by subsections 91(3) and (4);

• (b) the air carrier shall, in respect of a charter contract referred to in paragraph (a), specify on the page of the charter contract that bears the signature of the air carrier and the charterer that a charter authorization has been issued by the Agency and the period of the validity thereof;

• (c) the air carrier shall provide each charterer with

  • (i) where the financial guarantee is a letter of credit, the original of both the letter of credit and all amendments thereto respecting the TPC or series of TPCs, or

  • (ii) in any other case, a copy of the financial guarantee and of all amendments thereto respecting the TPC or series of TPCs in addition to signed documentation, in a form provided by the Agency, that establishes the advance payments received by the air carrier for each charter or series of charters are protected;

• (d) the provisions of subsection 91(7) and paragraphs 93(1)(c) and (d) shall apply;

• (e) the air carrier shall file with the Agency a copy of all financial guarantees, other than the financial guarantees referred to in paragraph (1)(a), subsection 91(7) and paragraphs 93(1)(c) and (d), prior to any advance payments being received from the charterer; and

• (f) the air carrier shall, upon filing with the Agency a copy of a financial guarantee pursuant to paragraph (e), subsection 91(7) and paragraphs 93(1)(c) and (d), file evidence with the Agency that

  • (i) the charterer has been provided with the financial guarantee in accordance with paragraph (c), and

  • (ii) the level of protection specified in the financial guarantee is such that all advance payments are fully protected at all times.