Order No. 1990-A-261
June 8, 1990
IN THE MATTER OF the operation of a Charter non-scheduled international service by US Air, Inc. doing business as USAir - Licence No. 881730.
File No. M4895-U11-4
WHEREAS under Licence No. 881730, US Air, Inc. doing business as USAir (hereinafter the Licensee) is authorized to operate a Class 9-4 Charter non-scheduled international service to transport traffic between points in Canada and points in the United States of America using aircraft in excess of 35,000 pounds maximum certificated take-off weight;
AND WHEREAS by letter dated May 8, 1990, the Licensee was advised that the Agency intends to amend theAir Transportation Regulations, SOR/88-58, with Governor in Council approval, such that scheduled airlines operating international passenger charter flights will no longer be exempt from the requirement to provide advance payment protection for these charter flights;
AND WHEREAS the Licensee was also advised that until the proposed regulatory change becomes law, the Agency deems it in the public interest, pursuant to subsection 96(1) of the National Transportation Act, 1987, R.S.C., 1985, c. 28 (3rd Supp.) to add a condition to Licence No. 881730 requiring the Licensee to have advance payment protection for all types of international charter flights that it may operate. The Agency also allowed the Licensee fifteen (15) days from the date of the letter to comment on the proposed amendment of licence;
AND WHEREAS the Licensee has not responded to the Agency's letter;
AND WHEREAS the Agency has considered the matter and deems it appropriate in the public interest to amend Licence No. 881730.
NOW THEREFORE, IT IS ORDERED THAT:
Licence No. 881730 is hereby amended pursuant to subsection 96(1) of the National Transportation Act, 1987 by adding the following condition:
- The Licensee shall not operate a charter flight, other than an entity charter flight, unless it has filed documentary evidence with the Agency showing that all advance payments received from any charterer under charter contract are fully protected, for the benefit of and in the name of each charterer participating in that charter, by one of the following arrangements for securing those advance payments:
- an agreement of guarantee between the air carrier responsible for the outgoing portion of the charter and a Canadian banking, trust or financial institution whereby the full refund of all or part of the advances made to the air carrier, to which the charterer may be entitled under the contract for unperformed charter transportation, is guaranteed to be paid promptly to the charterer by that institution;
- a performance bond provided to the air carrier responsible for the outgoing portion of the charter by a Canadian bonding or insurance company under which the company agrees to refund promptly to the charterer, if that air carrier fails to do so, all or part of the advances made to that carrier to which the charterer may be entitled under the contract for unperformed charter transportation; or
- performance insurance covering the charter price, whereby, if the air carrier responsible for the outgoing portion of the charter fails to perform the charter or any part thereof, the charterer shall be reimbursed to the extent of the entitlement of that charterer under the contract for the unperformed charter transportation.
A new document of licence, bearing Licence No. 881730, will be issued.
This Order takes effect as of July 1, 1990.
- Date modified: