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Air Transportation Regulations Parts I and II. Consultation Document.

June 2010

Amending the Air Transportation Regulations: Outline

  • Introduction to the Air Transportation Regulations
  • Regulations: Why Update Them?
  • Objectives of Stakeholder Consultations
  • Projected Timeline for Updating the ATR
  • Updating the ATR: Phase 1
  • Proposals for Changes to the ATR, Why
  • Other Sections of Interest?
  • Comments
  • Next Steps

Introduction to the Air Transportation Regulations

  • The Air Transportation Regulations (ATR) refine the application of the Canada Transportation Act (1996) (the Act)
  • The intent of the Act was to reform and modernize transportation regulation formerly established by the National Transportation Act, 1987 and the Railway Act, and to remove unnecessary or duplicative regulatory provisions and processes
  • Existing ATR were published in 1988, pursuant to the National Transportation Act, 1987
  • Selective amendments to the ATR have been made, but a full legislative updating of the ATR has not been undertaken

Regulations: Why Update Them?

  • To implement the Cabinet Directive on Streamlining Regulation
  • To increase efficiency and effectiveness of regulation
  • To reduce the regulatory burden on industry
  • To reduce the need to apply for exemptions
  • To respond to aviation marketplace dynamics
  • To increase transparency to licensees, the public
  • To harmonize with international agreements
  • To update regulatory language

Objectives of Stakeholder Consultation

  • The CTA has conducted an internal review of the Air Transportation Regulations
  • Based on this preliminary review, a number of proposals for changes in the regulations have emerged
  • The Agency is interested in your reactions to the proposals and is soliciting your  comments and feedback
  • Your comments will be reviewed and evaluated in  consideration with all other comments received as the Agency moves forward in the regulatory process

Projected Timeline for Updating the ATR

  • A Phased Approach
  • 3 Phases:
    • Phase 1: Parts I and II (Licensing and Insurance*) to be completed by Fall 2010
    • Phase 2: Parts III and IV (International Charters and Transborder Charters) to be completed by late Summer 2011
    • Phase 3: Parts V and VI (Tariffs and Service Schedules) to be completed by Summer 2012
    • * 2 sections to be omitted from this initial phase

Updating the ATR: Phase 1

  • Parts I and II, which includes sections 1-21
  • Sections 3 and 7 to be omitted from this initial phase
    • Section 3 – Air Services Excluded from the Application of Part II of the Act (licence exemptions)
    • Section 7 – Liability Insurance
  • Sections 3 and 7 will be the focus of a separate consultation process to begin in the Fall of 2010
  • Section 2 (definitions) will be amended as required in each of the 3 phases of the ATR project

Proposal: add new term - Passenger Resaleable Charter (PRC)

  • New term would eventually replace ABC, CPC, ITC, ABC/ITC and TPC
  • Why? To have one common term for international charter flights, whether for a package tour or flight only

Proposal: display names and related advertising on fuselage of each aircraft

  • Under the terms and conditions of international licences, require the licensee that is providing the aircraft to clearly and prominently display its name on the fuselage
  • Additional licensee and/or charter advertising on the fuselage would be permitted if the licensee's name that is providing the aircraft is more prominently displayed
  • Why? To communicate to the public the name of the licensee who is operating the air service

Proposal: change restrictions on advertising of passenger resaleable charters

  • A licensee with a non-scheduled international service licence could be permitted to advertise PRC without having to obtain the Agency's approval
  • Paragraph 18(c) and section 67 of the current ATR
  • Why? This would eliminate the need for licensees to apply for exemptions in order to advertise

Proposal: remove repetitive sections of the Regulations with regard to the Act

  • Remove the text of three sections of the ATR
    • 10.(1) domestic licences
    • 15.(1) scheduled international licences, and
    • 15.(2) non-scheduled international licences
  • Why? To remove repetitive sections of the Regulations that do not refine or enhance the application of existing law (Canada Transportation Act)

Proposal: change requirement for licensees to file annual declaration

  • Explore the possibility of changing the requirement that domestic, scheduled international, and non-scheduled international licence holders file a declaration with the Agency on an annual basis, as set out in Schedule II
  • Subsections 10(2) and 15(3) of current ATR
  • Why?  Existing practice may be unnecessarily burdensome.

Proposal: remove financial requirement for medium aircraft if met for large aircraft

  • Remove the financial requirement for a person who holds a valid domestic licence for large aircraft to meet the financial test when applying for a domestic licence for medium aircraft
  • Why? Evolution of Agency and industry practices no longer necessitate this practice.  If the financial requirements are met for large aircraft, it will no longer be necessary to meet them for medium aircraft

Proposal: reduce the number of days to apply for provision of an aircraft with flight crew

  • Reduce the number of days in advance by which a licensee must apply to the Agency for approval of provision or use of an aircraft with flight crew
  • Present requirement is 45 days
  • Subsection 8.2(2) of the current ATR
  • Why? To provide more flexibility to air carriers

Proposal: Modify the requirements in section 8.5

  • Applies to temporary or unforeseen circumstances necessitating the provision of an aircraft with flight crew within 72 hours before planned flight departure time
  • Maintain the requirement to communicate the identification of the carrier/person providing the service and aircraft type to each traveller no later than at check-in at the airport
  • Propose to eliminate the requirement of a licensee to include in the publishing in any notice in such a situation the phrase, "subject to the consent of the Agency"
  • Subsection 8.5 of the current ATR
  • Why? To reduce the regulatory burden on carriers, while acknowledging marketplace realities while maintaining the necessity to communicate effectively to passengers

Proposal:  apply same approval process for aircraft with flight crew to transborder licensees

  • Expand the exclusion from the requirement for approval of provision of aircraft with flight crew to American transborder licensees
  • Section 8.4 of the current ATR
  • Why? To establish fair and equitable treatment of Canadian and U.S. licensees in accordance with the CAN-U.S. Air Transport Agreement

Proposal: detail all documents required for aircraft with flight crew applications

  • Make explicit the documentation that licensees are required to file, so as to facilitate prompt processing of applications for the provision of aircraft with flight crew
  • Why? To make clear the requirements of the application process and expedite the processing of applications

ATR Updates: Other Sections of Interest?

  • Are there other sections of Parts I and II of the ATR that are of interest?
  • Other concerns/issues?
  • Suggestions for improved communication?

Comments

  • Written comments to be received by July 26, 2010.
  • Written comments can be sent to the Agency's office or by e-mail and will be posted on the Web site.
  • Questions or more information?

Next Steps for Parts I and II of the ATR

  • All comments will be reviewed and evaluated as the Agency moves forward in the regulatory development process
  • Interdepartmental co-ordination of proposed regulations
  • Pre-publishing in Canada Gazette will provide all interested parties with an opportunity to comment on the draft wording
  • Potential enactment in late 2010

Team Introduction

Industry Regulation and Determinations Branch

Allan Kagedan, Director, International Agreements and Tariffs Directorate

Greg Eamon, Manager, Regulatory Projects

Jill Abramczyk, Analyst, Regulatory Projects

Cassandra Della Zazzera, Manager, Air Licensing and Charters

Melanie Nera, Manager, Insurance and Marine Determinations Division

John Touliopoulos, Manager, Financial Evaluation

Legal Services Branch

Inge Green, Senior Counsel

Carolina Mingarelli, Counsel

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