Forward Regulatory Plan: 2019 to 2021 - Regulations Amending the Air Transportation Regulations and the Canadian Transportation Agency Designated Provisions Regulations

Enabling act(s)

Canada Transportation Act

Description

The Air Transportation Regulations (ATR) were registered on December 31, 1987. While there have been some amendments and additions made to the ATR over the years, there are areas that are in need of updating in order to reflect changes in the domestic and international aviation industry, clarify requirements and reduce unnecessary burden.

The Canadian Transportation Agency (CTA) has determined that amendments to the ATR are required to:

  1. Modernize air insurance provisions, including updating the minimum liability insurance requirements in the ATR and indexing them to inflation;
  2. Amend charter provisions to reflect market realities and a more liberalized air industry;
  3. Clarify code-sharing and wet-leasing activities and amend related provisions to reduce burden;
  4. Reduce the administrative burden on licensed operators; and
  5. Address other housekeeping items.

Proposed amendments to the ATR were published in Part I of the Canada Gazette on December 22, 2018 for a 60-day comment period. It is expected that final regulations will be published in Part II of the Canada Gazette in spring 2019.

This is a component of the CTA's Regulatory Modernization Initiative.  It has also been included in Transport Canada's Regulatory Review Sectoral Roadmap.

Regulatory cooperation efforts (domestic and international)

This regulatory review is intended to ensure the ATR reflect current practices in the aviation industry.

Potential impacts on Canadians, including businesses

The intent of the proposed amendments to the ATR is to ensure that they set clear obligations that remain relevant in relation to existing and emerging business practices, that the demands associated with compliance are only as high as necessary to achieve the regulations’ purposes, and that the regulations facilitate efficient and effective identification and correction of non-compliance.

The amendments will impact air carriers, air travelers in Canada and insurance companies. Air carriers will bear the cost of increased insurance premiums as a result of the updated minimum liability insurance requirements, and will be given a two-year transition period to adjust before the requirements come into force. Carriers will also benefit from alignment of regulations with current industry practices and reduced administrative burden. Air travellers in Canada will benefit from the greater assurance and financial security resulting from increased minimum insurance requirements. Insurance companies will generate more revenue from increased premiums related to higher minimum coverage requirements, but also have more financial exposure in the event of an incident.

This amendment is expected to have no significant impacts on international trade.

Consultations

On December 19, 2016, the CTA launched consultations on the modernization of the ATR. It issued discussion papers that focused on key issues, providing contextual information and posing questions on how to address the identified issues. The CTA also held targeted consultation meetings with stakeholders.

The CTA had received 15 formal written submissions and held twelve bilateral meetings with stakeholders. The input is summarized in a What We Heard Report.

The proposed amendments were published in Part I of the Canada Gazette on December 22, 2018 for a 60-day comment period that ended February 20, 2019.  It is expected that final amendments will be published in Part II of the Canada Gazette in spring 2019.

Other consultation information:

Further information

The cost-benefit analysis related to this regulatory initiative can be requested from the Agency contact.

Contact information

Caitlin Hurcomb
Team Leader
Regulatory Affairs Division
Analysis and Outreach Branch
Canadian Transportation Agency
Telephone: 819-997-6667
Email: Caitlin.Hurcomb@otc-cta.gc.ca

Date the regulatory initiative was first included in the Forward Regulatory Plan

October 2016

Consult the Agency’s acts and regulations web page for:

  • a list of acts and regulations administered by the Agency
  • further information on the Agency’s implementation of government-wide regulatory management initiatives

Consult the following for links to the Cabinet Directive on Regulation and supporting policies and guidance, and for information on government-wide regulatory initiatives implemented by departments and agencies across the Government of Canada:

To learn about upcoming or ongoing consultations on proposed federal regulations, visit:

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