CTA Home : Frequently Asked Questions : Air Transportation Frequently Asked Questions
Q1. What type of air service does a domestic licence issued by the Canadian Transportation Agency authorize?A1. A domestic licence authorizes a Canadian air carrier to operate a publicly-available air service within Canada for the transportation of passengers and/or cargo. A domestic licence may be issued to allow the operation of small aircraft, medium aircraft, large aircraft, and/or all-cargo aircraft. [ top ]
Q2. What is the definition of a small, medium, large and all-cargo aircraft?A2. A small aircraft is an aircraft equipped for the carriage of passengers and having a certificated maximum carrying capacity of not more than 39 passengers. A medium aircraft is an aircraft equipped for the carriage of passengers and having a certificated maximum carrying capacity of more than 39 passengers but not more than 89 passengers. A large aircraft is an aircraft equipped for the carriage of passengers and having a certificated maximum carrying capacity of more than 89 passengers. An all cargo aircraft is an aircraft equipped for the carriage of goods only. [ top ]
Q3. What must I do in order to obtain a domestic licence?A3. An applicant needs to be Canadian owned and controlled, have liability insurance for the proposed air service, and meet financial requirements where it proposes to transport passengers using medium or large aircraft. Additionally, an applicant needs to hold a Canadian aviation document (usually in the form of an air operator certificate) in respect of the applied for air service. Transport Canada (Civil Aviation) issues a Canadian aviation document when all safety requirements are met. An applicant for a domestic licence should obtain the Application Guide for a Licence or for an Amendment to a Licence to Operate a Domestic Air Service. The Guide sets out the information and documentation which needs to be submitted by the applicant to the Agency. [ top ]
Q4. What is the Canadian ownership requirement and how is this requirement assessed by the Agency?A4. To be Canadian, a corporation must be incorporated in Canada and at least 75 per cent of its voting interests need to be owned and controlled by Canadians. It must also be controlled in fact by Canadians. While the assessment of the ownership requirement is relatively straightforward, the control in fact determination can be more complex when foreign interests are involved. In such cases, the Agency may need to examine all operational, managerial and financial relationships that the applicant has or proposes to have with foreign entities. [ top ] Q5. Which air carriers need to comply with the financial requirements?A5. Normally, only Canadian carriers that propose to operate an air service with medium or large aircraft for passenger operations (i.e. that carry more than 39 passengers) need to comply. [ top ] Q6. Are the financial requirements ongoing?A6. No, the financial requirements are market entry requirements and such are meant to ensure that the proposed air service is well financed and has a reasonable chance of success. The capital stock that the applicant issues to effect compliance cannot be redeemed for a period of one year from the date of the issuance of the licence. [ top ] Q7. What type of air service does a non-scheduled international licence issued by the Canadian Transportation Agency authorize?A7. A non-scheduled international licence authorizes an air carrier to operate a publicly-available charter air service for the transportation of passengers and/or cargo between points in Canada and points in the applicant's home country. A non-scheduled international licence does not authorize the transportation of local traffic between points in Canada and contains terms and conditions which require that the air carrier meet the permit requirements of the Agency prior to operating charter flights. A non-scheduled international licence issued to a Canadian air carrier may authorize the operation of small aircraft, medium aircraft, large aircraft, and/or all-cargo aircraft. A non-scheduled international licence issued to a foreign air carrier is not specific to the class of aircraft to be operated pursuant to the licence. [ top ] Q8. What must I do in order to obtain a non-scheduled international licence?A8. A Canadian applicant for a non-scheduled international licence needs to be Canadian owned and controlled, have liability insurance for the proposed air service, and meet financial requirements where the applicant proposes to transport passengers using medium or large aircraft. Additionally, the applicant needs to hold a Canadian aviation document (usually in the form of an air operator certificate) in respect of the applied for air service. Transport Canada (Civil Aviation) issues a Canadian aviation document when all safety requirements are met. A Canadian applicant for a non-scheduled international licence should obtain the Application Guide for Canadian Applicants for a Licence or for an Amendment to a Licence to Operate a Non-Scheduled International Service. The Guide sets out the information and documentation which needs to be submitted by the applicant to the Agency. A foreign applicant for a non-scheduled international licence needs to hold a document issued by the government of the applicant's state or an agent of that government that, in respect of the service to be provided under the document, is equivalent to the non-scheduled international licence for which the application is being made; hold a Canadian Aviation Document (usually in the form of a Canadian Foreign Air Operator Certificate) issued by Transport Canada in respect of the applied for air service; and have liability insurance for the proposed air service. Transport Canada (Civil Aviation) issues a Canadian Aviation Document when all safety requirements are met. A foreign applicant for a non-scheduled international licence should obtain the Application Guide for Foreign Applicants for a Licence to Operate a Non-Scheduled International Service on a Charter Basis between Points in the Applicant's Home Country and Points in Canada or the Application Guide for U.S. Applicants for a Licence to Operate a Non-Scheduled International Service on a Charter Basis between Points in the U.S.A. and Points in Canada. The Guides set out the information and documentation which needs to be submitted by the applicant to the Agency. [ top ] Q9. What are the requirements that an air carrier must meet in order to operate charter flights to and from Canada?A9.
[ top ] Q10. What type of air service does a scheduled international licence issued by the Canadian Transportation Agency authorize?A10. A scheduled international licence authorizes an air carrier to operate a publicly-available international air service for the transportation of passengers and/or cargo on a scheduled basis pursuant to an agreement or arrangement to which Canada is a party for the provision of that service (see bilateral agreements). A scheduled international licence issued to a Canadian air carrier may authorize the operation of small aircraft, medium aircraft, large aircraft, and/or all-cargo aircraft. A scheduled international licence issued to a foreign air carrier is not specific to the class of aircraft to be operated pursuant to the licence. [ top ] Q11. What must I do in order to obtain a scheduled international licence?A 11. A Canadian applicant for a scheduled international licence needs to be Canadian owned and controlled, have liability insurance for the proposed air service, and meet financial requirements where the applicant proposes to transport passengers using medium or large aircraft. Additionally, the applicant needs to hold a Canadian aviation document (usually in the form of an air operator certificate) in respect of the applied for air service. Transport Canada (Civil Aviation division) issues a Canadian aviation document when all safety requirements are met. Finally, a Canadian applicant for a scheduled international licence must be designated by the Minister of Transport as eligible to hold a scheduled international licence (designation of Canadian air carriers for scheduled international services between Canada and the United States is automatic). A Canadian applicant for a scheduled international licence should obtain the Application Guide for Canadian Applicants for a Licence or for an Amendment to a Licence to Operate a Scheduled International Service between Canada and Any Other Country. The Guide sets out the information and documentation which needs to be submitted by the applicant to the Agency. A foreign applicant for a scheduled international licence needs to be designated by the government of the applicant's state or an agent of that government to operate an air service under the terms of an agreement or arrangement between that government and the Government of Canada; hold a document issued by the government of the applicant's state or an agent of that government that, in respect of the service to be provided under the document, is equivalent to the scheduled international licence for which the application is being made; hold a Canadian Aviation Document (usually in the form of a Canadian Foreign Air Operator Certificate) issued by Transport Canada in respect of the applied for air service; and have liability insurance for the proposed air service. Transport Canada (Civil Aviation) issues a Canadian Aviation Document when all safety requirements are met. A foreign applicant for a scheduled international licence should obtain the Application Guide for Foreign Applicants for a Licence to Operate a Scheduled International Service or the Application Guide for U.S. Applicants for a Licence to Operate a Scheduled International Service. The Guides set out the information and documentation which needs to be submitted by the applicant to the Agency. [ top ] Q12. (a) Where can I find information on individual bilateral agreements?
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