CHARTER PERMIT APPLICATION GUIDE

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CHARTER PERMIT APPLICATION GUIDE (International flights other than Canada/USA) for Canadian originating ENTITY Passengers Cargo Livestock Application filed pursuant to the Air Transportation Regulations (ATR) IMPORTANT INFORMATION October 2003 available in multiple formats

The Agency is in the process of amending the Air Transportation Regulations (ATR) to ensure that they conform with both the new International Cargo Charter Policy and the new International Passenger Charter Policy. In order to implement the new policies, the Minister of Transport has asked the Agency to use its exemption powers. Consequently, a request for exemption from those provisions of the ATR is required. A number of carriers have applied for and been granted a general exemption from those provisions of the ATR that conflict with the All-Cargo and Passenger Policies. THE FOLLOWING IS IN RESPECT OF CANADIAN ORIGINATING CARGO CHARTERS On May 29, 1998, the Minister of Transport announced an International All-Cargo Charter Air Services Policy. The main points of interest in this policy are: several charterers can now contract the entire capacity of an all-cargo aircraft (split charters) freight forwarders/consolidators that obtain payment for traffic carried at a toll per unit can now act as a charterer requirement that tariffs filed with the Agency include rates to be charged for the charter of the aircraft is no longer applicable When a charter flight is operated on behalf of more than one charterer or on behalf of a freight forwarder/consolidator, and until such time as the ATR are amended and in order to facilitate the above, the Agency, upon request, will grant exemptions from paragraph 20(a) of the ATR. Paragraph 20(a) states: "Every non-scheduled international licence is subject to the following conditions: (a) the licensee shall not charter an aircraft to a person who obtains payment for traffic carried at a toll per unit, unless the licensee is providing a service pursuant to Part III, except Division III thereof, or section 99; THE FOLLOWING IS IN RESPECT OF CANADIAN ORIGINATING PASSENGER CHARTERS On April 4, 2000, the Minister of Transport announced a new Policy for International Passenger Charter Air Services. The main points of interest in this policy are: up to three charterers can now contract the entire capacity of an aircraft requirement that tariffs filed with the Agency include rates to be charged for the charter of the aircraft is no longer applicable Also, for your information 1. carriers are still prohibited from selling directly 2. full capacity of the aircraft must still be chartered

1) LEGISLATIVE REFERENCES Part III, Division III, Sections 33.1 to 36.1 of the Air Transportation Regulations (ATR) Part V, Division II, Sections 108 to 135 of the ATR 2) DEFINITION: "Entity charter" means a flight operated according to the conditions of a charter contract under which: a) the cost of transportation of passengers (or goods) is paid by one person, corporation or organization without any contribution, direct or indirect, from any other person; and b) no charge or other financial obligation is imposed on a passenger as a condition of carriage or otherwise in connection with the transportation. 3) CARRIER MUST HOLD: Non-Scheduled valid for charter operations International licence: between Canada and the point of destination Insurance certificate: adequate insurance coverage pursuant to section 7 of the ATR Operating certificate: must reflect aircraft type to be used for the operation (this document is issued by Transport Canada) NOTE: Entity charter permits are required for aircraft having a maximum certificated take-off weight (MCTOW) greater than 35,000 lbs. 4) FILING TIME An entity charter application must be filed with the Agency not more than six months prior to the date of a proposed flight or the first of any proposed series of flights in respect of which the application is made and; not less than 2 working days prior to departure: For Canadian originating flights where the air carrier proposes to operate a third or fourth freedom charter pursuant to its valid non-scheduled international licence. not less than 30 days prior to departure: For Canadian originating flights not described above. or

5) CARRIER/CHARTERER MUST SUBMIT: A charter contract dated and signed by the carrier and the charterer in accordance with its tariff on file and in effect on the date the contract is signed as well as the details of the proposed operation including: 1) date and time of operation 2) points of origin and destination 3) routing of the proposed flight 4) type and configuration of the aircraft 5) number of seats or capacity contracted 6) the calculation of the charter price Pursuant to Section 35 of the ATR, livestock charters include the following categories; cattle equine (horses) swine sheep goats poultry 6) GENERAL INFORMATION The charterer can be represented by an agent. However, the Agency will not accept an affidavit signed by an agent on behalf of the charterer. Only a duly authorized officer of the charterer is authorized to sign said document. NOTE: An agent CAN SIGN the contract for the charterer if the latter has submitted a letter to the Agency stating that this agent has the power to sign on its behalf. Charter division contact numbers: The facsimile number for the charter division of the Canadian Transportation Agency is 819-953-5572. For further information on this guide, you can contact one of the Team Leaders. 1 The charter division also has an after hours service which can be used for emergency situations occurring at night or during weekends and Holidays. The telephone number is 613-769-6274. The licensee must contact: 1 http://sage geds.tpsgc pwgsc.gc.ca/cgi bin/direct500/eng/seou%3dracd DARC%2cou%3dIRDB DGRDI%2cou%3dCTA OTC%2co%3dGC%2cc%3dCA?SV=Team+Leader&SF=Title&ST=begins+with&x=1&y=1

Transport Canada, for compliance with security requirements (General Inquiries 613-990- 2309); The local airport authority for permission to operate at specific times or for the use of any airport facility; Canada Border Services Agency regarding the availability of clearance services and hours of operation of the port of entry (General Inquiries in English 204-983-3500 or 506-636-5064). SHOULD THERE BE ANY DISCREPANCY BETWEEN WHAT IS CONTAINED IN THIS DOCUMENT AND WHAT IS CONTAINED IN THE CANADA TRANSPORTATION ACT AND THE AIR TRANSPORTATION REGULATIONS, THE CANADA TRANSPORTATION ACT AND THE AIR TRANSPORTATION REGULATIONS SHALL PREVAIL.

CHARTER TRANSPORTATION AGREEMENT TYPE OF CHARTER : ENTITY AIRCRAFT: CONTRACT NO.: SEATING CAPACITY: This Agreement made this day of, BETWEEN (hereinafter called "Carrier") AND (hereinafter called "Charterer") (Address of Charterer) WHEREAS the Carrier shall provide aircraft with crew on a charter basis and the Charterer shall charter same, as hereinafter described, in accordance with and subject to the terms and conditions of this Agreement, and any appendices hereto, all of which shall be governed by the applicable tariffs of the Carrier filed pursuant to law with the Canadian Transportation Agency, the Aeronautics Act, the Canada Transportation Act and other regulations pertinent thereto. NOW THEREFORE in consideration of the mutual covenants hereinafter set forth, the parties hereto agree: DATES ORIGIN DESTINATION TRAFFIC STOPS LIVE/FERRY CONTRACTED SEATS (Provide details of flight schedule) BAGGAGE ALLOWANCE: TARIFF REFERENCE: SPECIAL ARRANGEMENTS/REMARKS: LIVE SECTOR CHARGE: FERRY SECTOR CHARGE: OTHER CHARGES: TAXES: TOTAL: PAYMENT DUE DATE AMOUNT DEPOSIT: FIRST: SECOND: BALANCE: TOTAL CHARTER PRICE: This Agreement shall be interpreted in accordance with the laws of (province, state or country)

ON BEHALF OF THE CARRIER SIGNATURE PER TITLE WITNESS ON BEHALF OF THE CHARTERER SIGNATURE PER TITLE WITNESS

TARIFF JUSTIFICATION CHARTERER: ROUTING: STATUTE MILEAGE: SOURCE: IATA/IAL Air Distances Manual IATA Mileage Manual International Aeradio Ltd. Other, please Identify TARIFF REFERENCE: CTA(A) No. page(s) ------------------------------------------------------------ LIVE/LIVE FERRY/LIVE X X $ $ S.M.* Legs R/S/M** S.M S.M X X $ $ Legs R/S/M X X $ $ Legs R/S/M $ $ Ground Handling: $ $ Other: $ $ TOTAL CHARTER PRICE: CA $ $ * S.M. - Statute Mile ** R.S.M. - Rate per statute mile