Policy Letters 117


The Best Use of Public Resources

File Number

AARX 5260-1 (AARXC)



Policy Statements

The Canadian Transportation Agency will determine whether those applicants needing to meet financial requirements fulfil the financial requirements and are Canadian, as prescribed by the Canada Transportation Act and the Air Transportation Regulations made thereunder. In the interests of making the best use of public resources and in support of the above policy initiative, the Agency will make this determination as soon as possible after it receives a licence application and before Transport Canada processes an air operator certificate or amendment.

1.(a) Canadian new entrants and existing air operators applying for a licence to operate an air service using medium aircraft (more than 39 but not more than 89 passengers) or large aircraft (more than 89 passengers), and applicants for the reinstatement of a licence to operate such aircraft where the licence has been suspended for 60 days or longer, must normally meet the financial requirements contained in the Regulations and the Canadian-ownership requirements set out in the Act. The financial requirements do not normally apply to those applying for the issuance or reinstatement of a licence to operate an air service (i) using medium aircraft if they already operate an air service using medium or large aircraft, or (ii) using large aircraft if they already operate an air service using large aircraft. All-cargo operators are exempt from the financial requirements, but must be Canadian.

(b) In addition, Transport Canada must receive the required fee before the air operator certification process may start.


1.(a) The Agency is the administrative body that ensures that such applicants meet the financial requirements and are Canadian, and it should be consulted if there is any doubt about the applicability of the requirements. An Agency financial officer can be contacted at (819) 953-8959 to discuss these matters.

(b) All such applicants should be advised that Transport Canada will not process an air operator certificate or amendment until the applicable fee has been received and proof has been provided that the Agency has found compliance with the applicable requirements. All such applicants for a new air operator certificate or an amendment to an existing document that have not yet complied with the requirements and have questions about the Agency's licence application form should be referred to Agency licensing officers at the telephone numbers contained in Annex A. Those with questions about the requirements to be met should be referred to an Agency financial officer at (819) 953-8959.

(c) The Certification Standards Division in Ottawa will be advised of the referral by the region, and, along with the region, will receive a copy of the Agency's determination.


In the above cases, when the Agency has made a favourable compliance finding and the fee or cost-recovery charge has been paid, the region will begin the process of certifying the air operator. In the event of an unfavourable finding, the cost-recovery charge will not be refunded. The reimbursement of the air operator fee is subject to existing policy.

Future Disposition

This policy will be incorporated into the various certification manuals.

Reference Number

This Policy Letter is designated AARX No. 117.

A.J. LaFlamme
Commercial & Business Aviation

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