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Canada Transportation Act (S.C. 1996, c. 10)

Act current to 2024-02-06 and last amended on 2023-09-30. Previous Versions

PART IIAir Transportation

Interpretation and Application

Marginal note:Definitions

  •  (1) In this Part,

    aircraft

    aircraft has the same meaning as in subsection 3(1) of the Aeronautics Act; (aéronef)

    air service

    air service means a service, provided by means of an aircraft, that is publicly available for the transportation of passengers or goods, or both; (service aérien)

    basic fare

    basic fare means

    • (a) the fare in the tariff of the holder of a domestic licence that has no restrictions and represents the lowest amount to be paid for one-way air transportation of an adult with reasonable baggage between two points in Canada, or

    • (b) where the licensee has more than one such fare between two points in Canada and the amount of any of those fares is dependent on the time of day or day of the week of travel, or both, the highest of those fares; (prix de base)

    Canadian

    Canadian means

    • (a) a Canadian citizen or a permanent resident as defined in subsection 2(1) of the Immigration and Refugee Protection Act,

    • (b) a government in Canada or an agent or mandatary of such a government, or

    • (c) a corporation or entity that is incorporated or formed under the laws of Canada or a province, that is controlled in fact by Canadians and of which at least 51% of the voting interests are owned and controlled by Canadians and where

      • (i) no more than 25% of the voting interests are owned directly or indirectly by any single non-Canadian, either individually or in affiliation with another person, and

      • (ii) no more than 25% of the voting interests are owned directly or indirectly by one or more non-Canadians authorized to provide an air service in any jurisdiction, either individually or in affiliation with another person; (Canadien)

    Canadian aviation document

    Canadian aviation document has the same meaning as in subsection 3(1) of the Aeronautics Act; (document d’aviation canadien)

    domestic licence

    domestic licence means a licence issued under section 61; (Version anglaise seulement)

    domestic service

    domestic service means an air service between points in Canada, from and to the same point in Canada or between Canada and a point outside Canada that is not in the territory of another country; (service intérieur)

    international service

    international service means an air service between Canada and a point in the territory of another country; (service international)

    licensee

    licensee means the holder of a licence issued by the Agency under this Part; (licencié)

    non-scheduled international licence

    non-scheduled international licence means a licence issued under subsection 73(1); (Version anglaise seulement)

    non-scheduled international service

    non-scheduled international service means an international service other than a scheduled international service; (service international à la demande)

    prescribed

    prescribed means prescribed by regulations made under section 86; (règlement)

    scheduled international licence

    scheduled international licence means a licence issued under subsection 69(1); (Version anglaise seulement)

    scheduled international service

    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; (service international régulier)

    tariff

    tariff means a schedule of fares, rates, charges and terms and conditions of carriage applicable to the provision of an air service and other incidental services. (tarif)

  • Marginal note:Affiliation

    (2) For the purposes of this Part,

    • (a) one corporation is affiliated with another corporation if

      • (i) one of them is a subsidiary of the other,

      • (ii) both are subsidiaries of the same corporation, or

      • (iii) both are controlled by the same person;

    • (b) if two corporations are affiliated with the same corporation at the same time, they are deemed to be affiliated with each other;

    • (c) a partnership or sole proprietorship is affiliated with another partnership or sole proprietorship if both are controlled by the same person;

    • (d) a corporation is affiliated with a partnership or a sole proprietorship if both are controlled by the same person;

    • (e) a corporation is a subsidiary of another corporation if it is controlled by that other corporation or by a subsidiary of that other corporation;

    • (f) a corporation is controlled by a person other than Her Majesty in right of Canada or a province if

      • (i) securities of the corporation to which are attached more than 50% of the votes that may be cast to elect directors of the corporation are held, directly or indirectly, whether through one or more subsidiaries or otherwise, otherwise than by way of security only, by or for the benefit of that person, and

      • (ii) the votes attached to those securities are sufficient, if exercised, to elect a majority of the directors of the corporation;

    • (g) a corporation is controlled by Her Majesty in right of Canada or a province if

      • (i) the corporation is controlled by Her Majesty in the manner described in paragraph (f), or

      • (ii) in the case of a corporation without share capital, a majority of the directors of the corporation, other than ex officio directors, are appointed by

        • (A) the Governor in Council or the Lieutenant Governor in Council of the province, as the case may be, or

        • (B) a Minister of the government of Canada or the province, as the case may be; and

    • (h) a partnership is controlled by a person if the person holds an interest in the partnership that entitles the person to receive more than 50% of the profits of the partnership or more than 50% of its assets on dissolution.

  • Marginal note:Definition of person

    (3) In subsection (2), person includes an individual, a partnership, an association, a corporation, a trustee, an executor, a liquidator of a succession, an administrator or a legal representative.

  • Marginal note:Control in fact

    (4) For greater certainty, nothing in subsection (2) shall be construed to affect the meaning of the expression “controlled in fact” in the definition Canadian in subsection (1).

  • 1996, c. 10, s. 55
  • 2000, c. 15, s. 1
  • 2001, c. 27, s. 222
  • 2018, c. 10, s. 15

Marginal note:Non-application of Part

  •  (1) This Part does not apply to a person that uses an aircraft on behalf of the Canadian Armed Forces or any other armed forces cooperating with the Canadian Armed Forces.

  • Marginal note:Specialty service exclusion

    (2) This Part does not apply to the operation of specialty services provided by aircraft, including firefighting, flight training, sightseeing, spraying, surveying, mapping, photography, parachute jumping, glider towing, helicopter-lift for logging and construction, airborne agricultural, industrial and inspection services or any other prescribed service provided by aircraft.

  • Marginal note:Emergency service exclusion

    (3) This Part does not apply to the provision of an air service if the federal government or a provincial or a municipal government declares an emergency under federal or provincial law, and that government directly or indirectly requests that the air service be provided to respond to the emergency.

  • Marginal note:Public interest

    (4) The Minister may, by order, prohibit the provision of an air service under subsection (3) or require the discontinuance of that air service if, in the opinion of the Minister, it is in the public interest to do so.

  • Marginal note:Not a statutory instrument

    (5) The order is not a statutory instrument within the meaning of the Statutory Instruments Act.

  • 1996, c. 10, s. 56
  • 2007, c. 19, s. 14
  • 2018, c. 10, s. 16

 [Repealed, 2007, c. 19, s. 15]

 [Repealed, 2007, c. 19, s. 15]

 [Repealed, 2007, c. 19, s. 15]

 [Repealed, 2007, c. 19, s. 15]

 [Repealed, 2007, c. 19, s. 15]

 [Repealed, 2007, c. 19, s. 15]

 [Repealed, 2007, c. 19, s. 15]

Prohibitions

Marginal note:Prohibition re operation

 No person shall operate an air service unless, in respect of that service, the person

  • (a) holds a licence issued under this Part;

  • (b) holds a Canadian aviation document; and

  • (c) has the prescribed liability insurance coverage.

Marginal note:Licence not transferable

 A licence issued under this Part for the operation of an air service is not transferable.

Marginal note:Prohibition re sale

 No person shall sell, cause to be sold or publicly offer for sale in Canada an air service unless, if required under this Part, a person holds a licence issued under this Part in respect of that service and that licence is not suspended.

  • 1996, c. 10, s. 59
  • 2007, c. 19, s. 16

Marginal note:Provision of aircraft with flight crew

  •  (1) No person shall provide all or part of an aircraft, with a flight crew, to a licensee for the purpose of providing an air service pursuant to the licensee’s licence and no licensee shall provide an air service using all or part of an aircraft, with a flight crew, provided by another person except

    • (a) in accordance with regulations made by the Agency respecting disclosure of the identity of the operator of the aircraft and other related matters; and

    • (b) where prescribed, with the approval of the Agency.

  • Marginal note:Conditions and Ministerial directions

    (2) Approval by the Agency under subsection (1) is subject to any directions to the Agency issued by the Minister and to any terms and conditions that the Agency may specify in the approval, including terms and conditions respecting routes to be followed, points or areas to be served, size and type of aircraft to be operated, schedules, places of call, tariffs, fares, rates and charges, insurance, carriage of passengers and, subject to the Canada Post Corporation Act, carriage of goods.

Licence for Domestic Service

Marginal note:Issue of licence

 On application to the Agency and on payment of the specified fee, the Agency shall issue a licence to operate a domestic service to the applicant if

  • (a) the applicant establishes in the application to the satisfaction of the Agency that the applicant

    • (i) is a Canadian,

    • (ii) holds a Canadian aviation document in respect of the service to be provided under the licence,

    • (iii) has the prescribed liability insurance coverage in respect of the service to be provided under the licence, and

    • (iv) meets prescribed financial requirements; and

  • (b) the Agency is satisfied that the applicant has not contravened section 59 in respect of a domestic service within the preceding twelve months.

Marginal note:Qualification exemption

  •  (1) Where the Minister considers it necessary or advisable in the public interest that a domestic licence be issued to a person who is not a Canadian, the Minister may, by order, on such terms and conditions as may be specified in the order, exempt the person from the application of subparagraph 61(a)(i) for the duration of the order.

  • Marginal note:Statutory Instruments Act

    (2) The order is not a regulation for the purposes of the Statutory Instruments Act.

  • Marginal note:Publication

    (3) The Minister must, as soon as feasible, make the name of the person who is exempted and the exemption’s duration accessible to the public through the Internet or by any other means that the Minister considers appropriate.

  • 1996, c. 10, s. 62
  • 2013, c. 31, s. 5

Marginal note:Mandatory suspension or cancellation

  •  (1) The Agency shall suspend or cancel the domestic licence of a person where the Agency determines that, in respect of the service for which the licence was issued, the person ceases to meet any of the requirements of subparagraphs 61(a)(i) to (iii).

  • Marginal note:Discretionary suspension or cancellation

    (2) The Agency may suspend or cancel a domestic licence

    • (a) where the Agency determines that, in respect of the service for which the domestic licence was issued, the licensee has contravened, or does not meet the requirements of, any regulation or order made under this Part or any provision of this Part other than subparagraphs 61(a)(i) to (iii); or

    • (b) subject to section 64, in accordance with a request from the licensee for the suspension or cancellation.

  • Marginal note:Reinstatement condition

    (3) The Agency shall not reinstate a domestic licence that has been suspended for sixty days or longer unless the licensee establishes to the satisfaction of the Agency that the person meets the prescribed financial requirements.

Marginal note:Notice of discontinuance or reduction of certain services

  •  (1) Where a licensee proposes to discontinue a domestic service or to reduce the frequency of such a service to a point to less than one flight per week and, as a result of the proposed discontinuance or reduction, there will be only one licensee or no licensee offering at least one flight per week to that point, the licensee shall give notice of the proposal in prescribed form and manner to such persons as are prescribed.

  • Marginal note:Notice of discontinuance of certain services

    (1.1) If a licensee proposes to discontinue its year-round non-stop scheduled air service between two points in Canada and that discontinuance would result in a reduction, as compared to the week before the proposal is to take effect, of at least 50% of the weekly passenger-carrying capacity of all licensees operating year-round non-stop scheduled air services between those two points, the licensee shall give notice of the proposal in the prescribed form and manner to the prescribed persons.

  • Marginal note:Discussion with elected officials

    (1.2) A licensee shall, as soon as practicable, provide an opportunity for elected officials of the municipal or local government of the community of the point or points, as the case may be, to meet and discuss with the licensee the impact of the proposed discontinuance or reduction.

  • Marginal note:Notice period

    (2) A licensee shall not implement a proposal referred to in subsection (1) or (1.1) until the expiry of 120 days, or 30 days if the service referred to in that subsection has been in operation for less than one year, after the notice is given or until the expiry of any shorter period that the Agency may, on application by the licensee, specify by order.

  • Marginal note:Considerations re whether exemption to be granted

    (3) In considering whether to specify a shorter period under subsection (2), the Agency shall have regard to

    • (a) the adequacy of alternative modes of public transportation available at or in the vicinity of the point referred to in subsection (1) or between the points referred to in subsection (1.1);

    • (b) other means by which air service to the point or between the points is or is likely to be provided;

    • (c) whether the licensee has complied with subsection (1.2); and

    • (d) the particular circumstances of the licensee.

  • Definition of non-stop scheduled air service

    (4) In this section, non-stop scheduled air service means an air service operated between two points without any stops in accordance with a published timetable or on a regular basis.

  • 1996, c. 10, s. 64
  • 2000, c. 15, s. 3
  • 2007, c. 19, s. 17
 

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