Air Transportation Regulations

43 (1) No air carrier shall operate an ITC originating in Canada unless the air carrier

• (a) holds a non-scheduled international licence valid for the proposed charter; and

• (b) has been issued a program permit, or has been deemed to have been issued a small carrier charter permit, by the Agency.

(2) An air carrier that proposes to operate an ITC with aircraft having an MCTOW greater than 35,000 pounds (15,900 kg) shall apply in writing to the Agency for a program permit in respect of the ITC.

(2.1) An air carrier that applies for a program permit in respect of an ITC shall

• (a) set out in the application a detailed description of the proposed tour, together with supporting documents, including the dates, times, points of origin and destination and routing of the proposed charter, the type and configuration of aircraft, the name of the tour operator chartering the aircraft and the calculation of the charter price and the inclusive tour price;

• (b) file the application with the Agency, as soon as the charter contract is signed or amended by the air carrier and the tour operator and not less than 15 days and not more than one year before the date of the proposed ITC or, in the case of a proposed series of ITCs, the date of the first flight, and

  • (i) in the case of an application by a Canadian air carrier, furnish a copy of the executed charter contract between the tour operator and the air carrier, and

  • (ii) in the case of an application by a non-Canadian air carrier, furnish the same information as required by these Regulations from Canadian air carriers but the proposed itinerary shall include a first stop, in the territory of the applicant’s country, of such a duration that ongoing transportation or return transportation from that territory shall not be commenced prior to the fourth day after the scheduled day of departure from the point of origin of the tour, except that the duration of such a first stop need not be longer than 72 hours from the scheduled hour and day of departure of the ITC where that country is within an area specified in paragraph (3)(g);

• (c) require full payment in respect of the entire charter price at least seven days before the commencement of the ITC, and subsections 24.1(3) and (4), section 24.2 and paragraphs 25(2)(e.1) and (g) apply, with such modifications as the circumstances require, in respect of the advance payments;

• (d) provide the Agency with a statement by each tour operator showing

  • (i) the name, address, nationality and nature of business of the tour operator,

  • (ii) where the tour operator is a corporation, the name, address and nationality of each director of the corporation,

  • (iii) a summary of the tour operator’s experience relating to transportation activities including, where applicable, particulars of the tour operator’s membership in travel organizations, and the licensing or registration of the tour operator under any law of a province requiring travel agents to be licensed or registered, and

  • (iv) evidence of the financial responsibility of the tour operator, including

    • (A) in respect of the tour operator’s latest financial year, financial statements duly approved by the board of directors or other executive body, together with the auditor’s report,

    • (B) if the date of the receipt by the Agency, pursuant to subparagraph (b)(i), of the copy of the executed charter contract is more than six months after the end of the tour operator’s financial year, a copy of the current financial statements signed by a person duly authorized by the tour operator,

    • (C) a letter from the tour operator’s bank indicating the extent of the tour operator’s line of credit, and

    • (D) a description of the arrangements made by the tour operator to ensure the protection of moneys paid to the tour operator in respect of inclusive tours during the period in which those moneys remain in the tour operator’s possession; and

• (e) establish

  • (i) the adequacy of the arrangements referred to in clause (d)(iv)(D),

  • (ii) the financial ability of the tour operator to perform the contract, and

  • (iii) that the tour operator has a place of business in Canada or, if the tour operator is a corporation, that it is registered under the laws of Canada or any province.

(2.2) An air carrier that holds a valid program permit for an ITC may

• (a) modify the ITC program approved by that permit, by advising the Agency of changes, by letter or electronic message, at least five days prior to the proposed effective date of that modification, with respect to

  • (i) the type of aircraft used,

  • (ii) the seating capacity, or

  • (iii) the dates of the flights, where each flight will be operated not more than three days prior to or three days after the date originally approved therefor, and

• (b) apply in writing to the Agency to amend the program permit in respect of changes other than those described in paragraph (a) by filing the application, including a copy of the modified ITC contract, in accordance with paragraph (2.1)(b).

(2.3) Subject to subsection (2.4), the Agency shall issue a program permit in respect of an ITC, or shall amend the program permit, as the case may be, where the applicant meets the requirements of subsection (2.1) or paragraph (2.2)(a) or (b), as the case may be.

(2.4) The Agency shall not issue a program permit in respect of an ITC or amend the program permit if the application therefor is in respect of a series of tours, and a tour in the series is not to be completed within a period of one year after the commencement of the first tour of the series.

(3) Every contract respecting an ITC originating in Canada is subject to the following conditions:

• (a) the tour operator agrees to pay to the air carrier, at least seven days before the commencement of the tour flight, the full contract price for air transportation in accordance with the tariff of the air carrier that is on file with the Agency and in

• (b) subject to paragraph (c), the tour operator agrees to sell any inclusive tour in respect of participants therein who are two years of age or older on the day the tour commences at not less than the inclusive tour price, which price shall not be less than the sum of the following:

  • (i) a price per seat obtained by multiplying the great-circle distance computed for the charter air transportation of each ITC participant by the ITC tariff rate per seat mile of the air carrier applicable at the time of travel and in effect on the date the charter contract is signed, and

  • (ii) an amount equal to the product of $16 and the number of nights during which accommodation is made available pursuant to subparagraph (d)(ii), except that no such amount

    • (A) shall be less than $60, or

    • (B) for tours of more than 10 nights, need be more than $160;

• (c) the tour operator agrees to sell any inclusive tour in respect of participants therein who are two years of age or older but less than 12 years of age on the day of commencement of the tour, and are to share accommodation with a participant in the same ITC paying an inclusive tour price established in accordance with paragraph (b), at not less than the inclusive tour price, which price shall not be less than the sum of the following:

  • (i) a price per seat obtained by multiplying the great-circle distance computed for the charter air transportation of each ITC participant by the ITC tariff rate per seat mile of the air carrier applicable at the time of travel and in effect on the date the charter contract is signed, and

  • (ii) an amount equal to the product of $8 and the number of nights during which accommodation is made available pursuant to subparagraph (d)(ii), except that no such amount

    • (A) shall be less than $30, or

    • (B) for tours of more than 10 nights, need be more than $80;

• (d) the tour operator agrees to provide to all tour participants, against payment of the applicable inclusive tour price,

  • (i) transportation,

  • (ii) except at the point of origin, accommodation forthwith on arrival and on a continuing basis until check-out prior to departure at all points in the tour itinerary where a night is spent, including points where

    • (A) the planned time of arrival of the inclusive tour at the airport or land terminal is prior to 06:00 hours local time, or

    • (B) the planned time of departure of the inclusive tour is later than 03:00 hours local time, and

  • (iii) tour features pursuant to the provisions of paragraph (e);

• (e) the tour operator agrees that all tour features included in the inclusive tour price will be

  • (i) where the ITC is to be operated with aircraft having an MCTOW greater than 35,000 pounds (15,900 kg), clearly identified in the application referred to in paragraph (2.1)(b), and

  • (ii) made available to all tour participants paying the inclusive tour price, who shall not receive any refund in respect of unused tour features;

• (f) the tour operator agrees to require and ensure that

  • (i) all tour participants observe paragraphs 43.1(c) and (d), and

  • (ii) each participant purchase a complete ITC program established pursuant to paragraph (d) and described in the brochure referred to in paragraph (l) at a price that is not less than the minimum inclusive tour price approved by the Agency for that ITC;

• (g) the tour operator agrees to ensure that, for tours between Canada and a point or points in Bermuda, the Caribbean, the Bahamas, Mexico, Central America or the northern coastal regions of South America including Colombia, Venezuela, Guyana, Surinam, French Guiana and the islands adjacent thereto, the return air transportation of a tour participant from the last stop on the tour itinerary shall not be commenced prior to the 72nd hour after the scheduled hour and day of that participant’s departure from the point of origin of the tour;

• (h) the tour operator agrees to ensure that, for tours between Canada and a point or points other than those described in paragraph (g), the return air transportation of a tour participant from the last stop on the tour itinerary shall not be commenced prior to the sixth day after the scheduled date of that participant’s departure from the point of origin of the tour;

• (i) the tour operator agrees that no tour participant will be accorded any rebates or other benefits that would have the effect of altering any applicable inclusive tour price set out in the brochure referred to in paragraph (l) describing the tour purchased by that participant;

• (j) in the case of a tour to be performed by a non-Canadian carrier, the tour operator agrees to ensure that the first stop on the itinerary is in the territory of the carrier’s country and is of such a duration that ongoing transportation or return transportation from that territory shall not be commenced prior to the fourth day after the scheduled day of departure from the point of origin of the tour, except that the duration of such a first stop need not be longer than 72 hours from the scheduled hour and day of departure of the ITC where that country is within the area specified in paragraph (g);

• (k) where the ITC is to be operated with aircraft having an MCTOW greater than 35,000 pounds (15,900 kg), the tour operator agrees that any public solicitation carried out and all tickets issued by the tour operator or that operator’s agents in respect of the ITC before the Agency has issued a program permit therefor shall include notice that the ITC is subject to the approval of the Agency;

• (l) the tour operator agrees to make available to each agent engaged in the sale of the ITC passenger seats and to any member of the public, on request, a tour brochure describing accurately

  • (i) all inclusive tour prices offered in the program and the conditions under which those prices apply,

  • (ii) the transportation to be provided, including the name of the air carrier and the names of each point of origin and each point of destination,

  • (iii) the accommodation, including the names of commercial organizations providing sleeping facilities, and

  • (iv) where applicable, tour features, clearly indicating

    • (A) tour features included in the tour program and the inclusive tour price, and

    • (B) tour features available for purchase from the tour operator by tour participants on an individual basis at a specified charge additional to the inclusive tour price; and

• (m) the tour operator agrees to provide the air carrier with the information required by the Agency concerning the tour operator.

(4) Every ITC contract shall include a clause requiring the observance of the conditions specified in subsection (3).