Air Transportation Regulations

57 (1) Every contract shall be made subject to the following conditions:

• (a) subject to paragraphs (b) and (c), the price per seat for the ABC transportation shall be set by the charterer at not less than the sum of

  • (i) the per seat pro rata aircraft charter cost of the block of seats contracted for by the charterer on that ABC, and

  • (ii) a mark-up which shall, in the aggregate, cover the charterer’s costs incurred in the sale of ABC passenger seats under the contract, including the cost of unsold seats during the subsistence of the contract;

• (b) subject to paragraph (c), the price per seat for the ABC transportation of passengers who are less than 12 years of age on the day when the ABC transportation commences shall be not less than the per seat charter cost referred to in subparagraph (a)(i), unless a holder of a scheduled international licence or non-scheduled international licence publishes a children’s fare for transportation between the points for which the ABC transportation is offered or between points near those points that is lower than the lowest price per seat allowed by this paragraph, in which case the charterer may sell ABC seats to passengers qualifying therefor at a price per seat matching that children’s fare; and

• (c) a person less than two years of age on the day when the ABC transportation commences may be transported free of charge if that person does not occupy a separate seat on board the aircraft used in that ABC.

(2) Where an ABC is proposed to be operated, pursuant to paragraph 64(2)(b), between more points than are permitted by subsection 64(1), the per seat charter cost referred to in subparagraph (1)(a)(i) shall be obtained by multiplying the great-circle distance computed for the charter air transportation of each passenger by the air carrier’s ABC tariff rate per seat-mile applicable at the time of travel and in effect on the date the contract is signed.

(3) Every air carrier that has been issued a program permit pursuant to section 48.1 for an ABC shall require full payment from each charterer at least seven days before the departure of the outbound portion of the ABC and, on request by the Agency, shall file with the Agency documentary proof of that payment and the date when the payment was received by the air carrier.