Table of Contents

PURPOSE

The purpose of this contribution program is to assist Canadian airlines operating pursuant to Subpart 705 – Airline Operations of the Canadian Aviation Regulations with the cost of implementing security modifications to passenger and cargo aeroplanes. This contribution program is a direct result of the new regulatory requirements relating to permanent upgrades to the intrusion and penetration characteristics of cockpit doors.

ELIGIBLE RECIPIENTS

1. Holders of a valid Air Operator Certificate issued pursuant to Subpart 705 - Airline Operations of the Canadian Aviation Regulations as at the date of application; and
2. Applicants for an Air Operator Certificate issued pursuant to Subpart 705 - Airline Operations of the Canadian Aviation Regulations as at the date of application;

For the purposes of this program an application for an Air Operator Certificate can be a letter of intent received by Transport Canada as at the date of application.

ELIGIBLE AEROPLANES

For the purpose of the contribution program, the eligible aeroplanes are those to which the new regulatory requirements apply. They include:

1. Passenger-carrying aeroplanes that are part of an applicant’s fleet that are authorized pursuant to Subpart 705 - Airline Operations of the Canadian Aviation Regulations and that in respect of which an initial type certificate was issued after January 1, 1958;
2. All-cargo aeroplanes that are part of an applicant’s fleet that are authorized pursuant to Subpart 705 - Airline Operations of the Canadian Aviation Regulations, in respect of which an initial type certificate was issued after January 1, 1958, and that had a door between the flight deck and any other occupied compartment with a flight deck door on January 15, 2002.

Applicants will be required to identify in their applications each eligible aeroplane for which they will be requesting a contribution under this program.  Applicants may identify aeroplanes that are part of their fleet at the time of the application and also aeroplanes that are expected to become part of the applicant’s fleet within the duration of the program.

It is recognized that over time there will be natural movements of aircraft in and out of the fleets of individual airlines. Amendments to the contribution agreements that respect established funding levels may be considered to account for on-going fleet changes that may occur during the life of the program.

ELIGIBLE COSTS

Eligible costs are those directly incurred or paid towards acquiring and installing upgrades to the intrusion and penetration characteristics of cockpit doors and related video monitoring accessories that are an essential component of the door.  These costs must relate to the permanent modifications that meet the design standards of the new regulatory requirement contained within the recent amendment to CAR design Standard 525.

Eligible costs are limited to the following:

• Costs of acquiring approved cockpit door components, parts and related video monitoring accessories that are an essential component of the door;
• Costs of installing approved cockpit door components, parts and video monitoring accessories that are an essential component of the door;
• Shipping costs.

In cases when an eligible recipient also acts as designer and/or manufacturer and/or installer of the components, the design costs, manufacturing costs and installation costs will be determined at fair market value that the contribution agreement will define.

A contribution will not be made towards

1. costs incurred before April 1, 2002 and after the completion date of the contribution program March 31, 2004
2. costs related to the loss of revenue resulting from taking an aircraft out of service to implement the modifications;
3. costs of temporary modifications that will be implemented to comply with the interim regulatory requirement coming into effect May 1, 2002;
4. costs associated with updating of relevant company programs and procedures.

HOW TO APPLY

Transport Canada has instituted a two-phase process. In the first phase all eligible recipients will forward a completed application form by June 15, 2002 (please note: the department reserves the right to extend this date should circumstances dictate) indicating the aeroplanes for which they are seeking a contribution.  Phase two consists of Transport Canada entering into a contribution agreement with each recipient, for the reimbursement of eligible costs up to the established maximums. The maximum amount payable for each aeroplane will be determined once all applications have been received.

Phase 1

Please complete : Contribution Application Form (PDF 21KB)

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Please be advised that all applications are to be mailed to the following address:

Transport Canada
International Aviation (AARJ)
Place de Ville Tower “C”
330 Sparks St.
Ottawa, Ontario
K1A 0N8

For inquires and general information on the application process please call (613) 998-5020 or e-mail wagneri@tc.gc.ca.

Phase 2

CONTRIBUTION AGREEMENT

Transport Canada is in the process of developing the contribution agreement to be signed by both the Department and eligible recipients. The contribution agreement will include the full terms and conditions that must be met by the applicant. A draft of the contribution agreement will be sent to accepted applicants.

BASIS AND TIMING OF PAYMENT

When requests for payment that are supported by evidence satisfactory to the Department, are submitted to Transport Canada by the Recipient, the contribution will be paid as a reimbursement of eligible costs incurred or eligible expenditures made by a Recipient as part of undertaking the project.

Payments under the program and pursuant to the contribution agreement will be made once the recipients provides the following information in a manner that can be detailed on a per aeroplane basis:

• evidence as to the acquisition costs of the cockpit doors, parts and related video monitoring accessories that are an essential component of the door for which a contribution is requested;
• evidence as to the installation costs of the cockpit doors, parts and related video monitoring accessories that are an essential component of the door for which a contribution is requested;
• evidence as to the shipping costs of the cockpit doors, parts and related video monitoring accessories that are an essential component of the door for which a contribution is requested;
• a copy of the Major Repair or Major Modification Report for each aeroplane. This report includes details regarding the aircraft, its owner, the name and address of the person or organization who accomplished modification, and a description of the work accomplished.

Transport Canada will provide payments on a quarterly basis to recipients under this program.

Any payment made by the government is subject to there being an appropriation by Parliament for the fiscal year in which the payment is to be made.  In the event that departmental funding levels are changed by Parliament, a contribution may be reduced or cancelled.