Commercial and Business Aviation Advisory Circulars

Carriage of Passengers on Aircraft Operated by Private Operator Certificate Holders

The purpose of this Commercial and Business Aviation Advisory Circular (CBAAC) is to outline the rules regarding the carriage of passengers for hire and reward.

APPLICABILITY

All Private Operator Certificate holders

REFERENCES

The definitions included in the following are drawn from the interpretations contained in the:

• Aeronautics Act
• Canada Transportation Act
• Canadian Aviation Regulations (CARs)

Part VII, Section 700.02 of the CARs Requirements for Air Operator Certificate (AOC) clearly states that:

No person shall operate an air transport service unless the person holds and complies with the provisions of an Air Operator Certificate that authorizes the person to operate that service.

Part I, Section 101.01 of the CARs defines air transport service² as a commercial air service that is operated for the purpose of transporting persons, personal belongings, baggage, goods or cargo in an aircraft between two points;

A commercial air service³ is defined in the Aeronautics Act as any use of aircraft for "hire or reward".

Hire or reward⁴ is subsequently defined as any payment, consideration, gratuity or benefit, directly or indirectly charged, demanded, received or collected by any person for the use of an aircraft.

INTERPRETATION

The corollary of the above discussion is that an operator who does not hold an AOC cannot demand, accept, receive or collect directly or indirectly any payment, consideration, gratuity or benefit, for the use of an aircraft.

ACTION

POC holders are to ensure that procedures are in place to ensure all operations are conducted within the limitations of their operating certificate.

FUTURE DISPOSITION

This CBAAC will remain in effect until further notice.

Michel Gaudreau
Director
Commercial & Business Aviation

¹“air operator certificate” - means a certificate issued under Part VII that authorizes the holder of the certificate to operate a commercial air service [Canadian Aviation Regulations (CAR) 101.01 Interpretation]

² “air transport service” - means a commercial air service that is operated for the purpose of transporting persons, personal belongings, baggage, goods or cargo in an aircraft between two points [Canadian Aviation Regulations (CAR) 101.01, Interpretation

³ “commercial air service” means any use of aircraft for ‘hire or reward’
[Aeronautics Act (AA) 3. (1)]

⁴ “hire or reward” means any payment, consideration, gratuity or benefit, directly or indirectly charged, demanded, received or collected by any person for the use of an aircraft. [(AA) 3. (1)]