Scheduled International Air Service: U.S. Applicants
- Part I: General Information
- A. Relevant Acts and Regulations
- B. Definitions
- C. Air Services Excluded From Licensing Requirements
- D. Requirements for Licence Issuance
- E. Evidence of holding a Canadian Aviation Document
- F. Insurance Requirements
- G. Prohibition regarding Sale of an Air Service
- H. Licence Not Transferable
- I. Appointment & Notification of Agent Requirement
- J. Canada Border Services Agency Reporting Requirements
- K. Tariff Filing Requirements
- L. Statistical Reporting Requirements
- Part II: Application Instructions
revised March, 2010
The issuance of a licence by the Canadian Transportation Agency (the Agency) and the operation of air services are governed by the following:
- the Canada Transportation Act (the Act);
- the Air Transportation Regulations (the ATR);
- the Aeronautics Act and associated regulations.
These documents are available through:
Department of Justice Canada
284 Wellington Street
Canada K1A 0H8
You are encouraged to acquire the aforementioned documents and to familiarize yourself with their contents.
SHOULD THERE BE ANY DISCREPANCY BETWEEN WHAT IS CONTAINED IN THIS DOCUMENT AND WHAT IS CONTAINED IN THE CANADA TRANSPORTATION ACT AND THE AIR TRANSPORTATION REGULATIONS, THE ACT AND THE REGULATIONS SHALL PREVAIL.
In this document,
- "Air service"
- means a service, provided by means of an aircraft, that is publicly available for the transportation of passengers or goods, or both.
- "Canadian aviation document"
- in this guide, refers to any licence, permit, accreditation, certificate or other document issued by the Minister under Part I to or with respect to any person or in respect of any aeronautical product, aerodrome, facility or service (for the purpose of this guide, Transport Canada refers this document as a"Canadian Foreign Air Operator Certificate").
- "Certificated Maximum Carrying Capacity"
- means a) the maximum number of passengers specified in the Type Approval Data Sheet or the Type Certificate Data Sheet issued or accepted by the competent Canadian authority for the aircraft type and model, or b) in respect of a particular aircraft that has been modified to allow a higher number of passengers, the maximum number of passengers specified in the Supplemental Type Approval or the Supplemental Type Certificate issued or accepted by the competent Canadian authority.
- "International Service"
- means an air service between Canada and a point in the territory of another country.
- means the maximum certificated take-off weight for aircraft as shown in the aircraft flight manual referred to in the aircraft's Certificate of Airworthiness issued by the competent Canadian or foreign authority.
- "Passenger seat"
- for publication/insurance purposes, means a seat on board an aircraft that may be permanently occupied by a passenger for the period during which the aircraft is being used for a domestic service or an international service.
- "Scheduled International Licence"
- means a licence issued under subsection 69(1) of the Act.
- "Scheduled International Service"
- means an international service that is a scheduled service pursuant to: a) an agreement or arrangement for the provision of that service to which Canada is a party; or b) a determination made under section 70 of the Act.
- "Non-scheduled international service"
- means an international service other than a scheduled international service.
You do not require an Agency licence to operate the following specialty services to which Part II of the Act does not apply, however, you will continue to be required to obtain a Canadian Foreign Air Operator Certificate and to satisfy Transport Canada concerning publication/insurance coverage:
- aerial advertising services
- aerial fire-fighting services
- aerial survey services
- aerial reconnaissance services
- aerial sightseeing services
- aerial spreading services
- aerial weather altering services
- air cushion vehicle services
- transportation services for the retrieval of human organs for human transplants
- aircraft demonstration services
- external helitransport services
- glider towing services
- hot air balloon services
- parachute jumping services
- rocket launching
- air flight training services
- aerial inspection services
- aerial construction services
- aerial photography services
- aerial spraying services
- aerial forest fire management services
In addition, a licence is not required by a person that uses aircraft on behalf of the Canadian Armed Forces or any other armed forces cooperating with the Canadian Armed Forces.
A licence to operate a scheduled international service may be issued by the Agency if it is satisfied that the applicant:
- holds a Canadian aviation document issued by Transport Canada in respect of the service to be provided under the licence;
- has filed the prescribed liability publication/insurance coverage in respect of the service to be provided under the licence;
- within the preceding twelve months, has not contravened section 59 of the Act in respect of the service to be provided under the licence. (This section is explained under point G. of this guide);
- holds, in respect of the air service, a document issued by the Government of the United States that, in respect of the service to be provided under the document, is equivalent to a scheduled international licence; and
- has been designated by the Government of the United States to operate an air service under the terms of an agreement or arrangement between that government and the Government of Canada.Note
For information regarding Transport Canada's requirements and for procedures to be followed when applying for a Canadian aviation document, contact:
Foreign Inspection Division
Transport Canada (AARJF)
330 Sparks Street, 5th Floor
Canada K1A 0N8
A CANADIAN AVIATION DOCUMENT ISSUED BY TRANSPORT CANADA IS A PREREQUISITE FOR LICENCE ISSUANCE. A COPY OF THE CANADIAN AVIATION DOCUMENT, VALID FOR THE PROPOSED SERVICE, MUST BE SUBMITTED TO THE AGENCY BEFORE AN AGENCY LICENCE CAN BE ISSUED.
The publication/insurance requirements are set out in sections 7 and 8 of the ATR. For reference purposes, sections 7 and 8 are set out below:
7.(1) No air carrier shall operate a domestic service or an international service unless, for every accident or incident related to the operation of that service, it has:
- liability publication/insurance covering risks of injury to or death of passengers in an amount that is not less than the amount determined by multiplying $300,000 by the number of passenger seats on board the aircraft engaged in the service; and
publication/insurance covering risks of public liability in an amount that is not less than
- $1,000,000, where the MCTOW of the aircraft engaged in the service is not greater than 7,500 pounds (3, 402 kg),
- $2,000,000, where the MCTOW of the aircraft engaged in the service is greater than 7,500 (3, 402 kg) pounds but not greater than 18,000 pounds (8, 165 kg), and
- where the MCTOW of the aircraft engaged in the service is greater than 18,000 pounds (8, 165 kg), $2,000,000 plus an amount determined by multiplying $150 by the number of pounds by which the MCTOW of the aircraft exceeds 18,000 pounds (8, 165 kg).
7.(2) The publication/insurance coverage required by paragraph (1)(a) need not extend to any passenger who is an employee of an air carrier if workers' compensation legislation governing a claim for damages against that air carrier by the employee is applicable.
7.(3) No air carrier shall take out liability publication/insurance to comply with subsection (1) that contains an exclusion or waiver provision reducing publication/insurance coverage for any accident or incident below the applicable minima determined pursuant to that subsection, unless that provision
consists of standard exclusion clauses adopted by the international aviation publication/insurance industry dealing with
- war, hijacking and other perils,
- noise and pollution and other perils, or
- aviation radioactive contamination;
- is in respect of chemical drift;
- is to the effect that the publication/insurance does not apply to liability assumed by the air carrier under any contract or agreement unless such liability would have attached to the air carrier even in the absence of such contract or agreement; or
- is to the effect that the entire policy shall be void if the air carrier has concealed or misrepresented any material fact or circumstance concerning the publication/insurance or the subject thereof or if there has been any fraud, attempted fraud or false statement by the air carrier touching any matter relating to the publication/insurance or the subject thereof, whether before or after a loss.
7.(4) An air carrier may have a comprehensive single limit liability coverage where liability risks are covered by a single policy or a combination of primary and excess policies, but no single limit liability coverage of that air carrier shall be for an amount that is less than the applicable combined publication/insurance minima determined pursuant to paragraphs (1)(a) and (b).
8.(1) Every applicant for a licence or for an amendment to or renewal of a licence, and every licensee, shall file with the Agency, in respect of the service to be provided or being provided, as the case may be, a valid Certificate of Insurance in the form set out in Schedule I as well as a Certificate of Endorsement.
Section 59 of the Act provides that no person shall sell, cause to be sold or publicly offer for sale in Canada an air service unless, if required under Part II of the Act, a person holds a licence issued under Part II in respect of that service and that licence is not suspended.
Where an individual has contravened section 59 of the Act, the Agency may, for a period not exceeding twelve months after the date of the contravention, refuse to issue a licence in respect of an air service to the individual or to any corporation of which the individual is a principal.
Where a corporation has contravened section 59, the Agency may, for a period not exceeding twelve months after the date of the contravention, refuse to issue a licence in respect of an air service to
- the corporation;
- any person who, as a principal of the corporation, directed, authorized, assented to, acquiesced in or participated in a contravention that gave rise to the suspension or cancellation; and (section 79 of the Act refers)
- any body corporate of which the corporation or the person referred to in paragraph (b) above is a principal. (section 79 of the Act refers)
Section 58 of the Act provides that a licence issued under Part II of the Act for the operation of an air service is not transferable.
Subsections 84(1) and (2) of the Act provide that:
84(1) "A licensee who has an agent in Canada shall, in writing, provide the Agency with the agent's name and address."
84(2) "A licensee who does not have a place of business or an agent in Canada shall appoint an agent who has a place of business in Canada and, in writing, provide the Agency with the agent's name and address."
Applicants must report electronically to Canada Border Services Agency (formerly referred to as Customs or Revenue Canada)
- all goods (whether or not company owned) and
- all passengers and personnel (including personnel of another air carrier)
Such reporting is required:
- prior to arrival (per Advance Commercial Information (ACI) and Advance Passenger Information/Passenger Name Record (API/PNR) regulations, and
- upon arrival at the point of entry in Canada (per the Customs Act)
For more details, contact Canada Border Services Agency at the following numbers:
204-983-3500 or 506-636-5064 (English);
204-983-3700 or 506-636-5067 (French)
Notwithstanding licence issuance, applicants are reminded that appropriate tariffs containing general terms and conditions of carriage which are broadly applicable to all air transportation and are not directly related to the fare, rate or charge are required to be on file and in effect with the Agency prior to commencing respective air services.
Carriers offering international scheduled services are required to file with the Agency, prior to the commencement of service, their service schedule which includes routes operated, the type of equipment used with seating capacity, frequency, departure/arrival times, etc. all pursuant to Part VI of the ATR. Carriers have the option of electronic filing.
For your information, some samples of tariffs can be found on our internet site at the following link: https://www.otc-cta.gc.ca/eng/tariffs. If you are unable to download a copy or should you require further assistance with respect to tariffs, contact the Tariffs Division by telephone at 819-953-2124 or by facsimile at 819-953-5686.
New applicants for licences to operate air services should be aware of the type and volume of publication/statistics that will be required and the frequency of reporting.
All carriers providing air services to or from Canada are required, under regulations pursuant to Section 50 of the Act, to report some operational data to the Government of Canada. This is accomplished through Transport Canada's Electronic Collection of Air Transportation Statistics (ECATS) program. In order to join ECATS, air carriers are required to contact the ECATS program office via e-mail, phone or regular mail 30 days prior to beginning their operations to or from Canada
Transport Canada – ECATS
Attn: Chief, Aviation Statistics
Economic Analysis (ACACE)
Place de Ville Tower C 25th floor
Canada K1A 0N5
Telephone: 613-990-3825 or 613-993-4541
Applications should be typewritten in the format as set out in the Appendices 1 and 2.
Applications and supporting documents are to be submitted in either English or French. All documents filed in another language must be accompanied by a translation in English or French and an affidavit attesting to the accuracy of the translation. (Section 12 of the General Rules refers)
- the name of the insured party must correspond exactly with the name that is to appear on the insured party's licence. (Trade names under which the applicant operates or proposes to operate do not need to appear on the Certificates of Insurance and Endorsement.)
- the effective dates are current and indicated in day, month, year order
- section 3 of the Certificate of Insurance should be completed by inserting the words "an international" (when completing section 3, the minimum amount of publication/insurance coverage required should be calculated as per section 7 of the ATR which has been reproduced in item F of Part I of this guide)
- section 4(a) or (b) should be completed by inserting the word "international"
- Note: "domestic" refers to a domestic service operated within Canada and not a service that is being operated in your own country.
- either section 6(a) or (b) should be selected (checked)
- the certificate must be dated and signed by an authorized person or agent of the insurer
- when publication/insurance is provided through more than one insurer, a listing of insurers must be provided with the percentage of interest of each clearly indicated
- combined single limit (CSL) coverage, which is the sum of passenger and public liability, may be shown instead of passenger liability and public liability being shown separately
Copies of the Certificates of Insurance and Endorsement can be found at: https://www.otc-cta.gc.ca/sites/all/files/altformats/books/certificate-insurance.pdf and https://www.otc-cta.gc.ca/sites/all/files/altformats/books/certificate-endorsement.pdf.
The application, including all supporting documentation, is to be submitted to the Agency and should be addressed as follows:
By mail to:
Canadian Transportation Agency
Canada, K1A 0N9
By courier to:
Canadian Transportation Agency
15 Eddy Street
Canada J8X 4B5
The application can also be submitted to the Agency by facsimile at 819-953-5562 or 819-953-8798.
THE ONUS IS ON THE APPLICANT TO COMPLETE THE APPLICATION IN FULL AND TO INCLUDE ALL SUPPORTING DOCUMENTATION REQUESTED.
Timeline to receive a licence
Applicants can usually expect to receive a licence within two weeks (14 calendar days) after having satisfied all licence issuance requirements. When an application is not complete, it cannot be processed until the necessary information or documentation is filed. In cases where requirements are not met within a year, applicants will be informed that since their application is incomplete, their file may be closed.
The application should be identified as such and be signed by:
- the proprietor, if a proprietorship (i.e. an individual);
- each partner, if a partnership;
- by an officer or officers of the corporation duly authorized to execute such documents under seal, if any, on behalf of the corporation, if a corporation;
- a member, if a limited liability company.
A PERSON SUCH AS A LAWYER OR CONSULTANT, WHO PREPARES AN APPLICATION ON BEHALF OF AN APPLICANT, CANNOT SIGN THE APPLICATION UNLESS THE PERSON IS A DULY AUTHORIZED AGENT OR SOLICITOR ACTING FOR THE APPLICANT.
All applicants must undertake to not contravene section 59 of the Act prior to the issuance of the applied for licence. This undertaking must be witnessed.
A PERSON SUCH AS A LAWYER OR CONSULTANT, WHO PREPARES AN APPLICATION ON BEHALF OF AN APPLICANT, CANNOT SIGN THE UNDERTAKING. ONLY THOSE INDIVIDUALS LISTED IN ITEM 4 ABOVE CAN SIGN.
All of the information contained in the application, including the supporting documentation and changes subsequently made thereto, must be verified by an affidavit of the applicant, attesting to its truth, accuracy and completeness. (A sample affidavit form which may be used by applicants is attached as Appendix 2)
A PERSON SUCH AS A LAWYER OR CONSULTANT, WHO PREPARES AN APPLICATION ON BEHALF OF AN APPLICANT, CANNOT SIGN THE AFFIDAVIT. ONLY THOSE INDIVIDUALS LISTED IN ITEM 4 ABOVE CAN SIGN.
Any changes made to the application are considered to be amendments to the original application and are to be titled and numbered in the same fashion as the corresponding items in the original application.
The Agency may request additional information and documentation if it is required or if ambiguities need to be clarified.
IT IS THE RESPONSIBILITY OF THE LICENSEE TO ENSURE THAT ITS CANADIAN AUTHORIZATIONS ARE KEPT CURRENT AND REFLECT AT ALL TIMES THE OPERATIONS OF THE LICENSEE INTO CANADA. IN PARTICULAR, BUT NOT LIMITED TO THE FOREGOING, THE LICENSEE SHOULD NOTIFY THE AGENCY OF ANY CHANGES IN RESPECT OF ITS LIABILITY INSURANCE COVERAGE, THE AIRCRAFT IT INTENDS TO OPERATE INTO CANADA, ANY U.S. OPERATING AUTHORIZATIONS WHICH MAY AFFECT OPERATIONS INTO CANADA, AND ANY CHANGES TO THE NAME OF THE LICENSEE WHICH WOULD RESULT IN A DIFFERENCE FROM THE NAME SPECIFIED ON ITS CANADIAN LICENCE(S) OR ANY RELATED CANADIAN AUTHORIZATIONS.
SENSITIVE OR CONFIDENTIAL INFORMATION SHOULD BE CLEARLY MARKED AS SUCH AND SHOULD BE SUBMITTED AS SEPARATE DOCUMENTS.
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