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These Regulations make provision for implementing the Community obligations of the United Kingdom provided for in Council Regulation 2407/92 on licensing of air carriers and matters arising out of or related thereto.
Subject to the terms of these Regulations and save for those instances where the Secretary of State is specified as the competent authority for the purposes of the Council Regulation the Civil Aviation Authority (the CAA) is given the task of performing the various functions relating to the grant and maintenance of air carrier operating licences that are required to be performed by the Council Regulation (regulation 3). Those terms require the CAA, in the case of small air carriers, to afford those carriers the option of providing the financial information relevant to article 5.5 of the Council Regulation rather than information as to net capital worth; disapply paragraphs 1 to 4 and 6 of article 5 of the Council Regulation in the case of small air carriers and require UK licensed air carriers to use aircraft registered according to an option determined by the Secretary of State save for the exceptions provided for in the Council Regulation (regulations 16 to 18). Provision is made for appeals to the Secretary of State consequent upon a refusal, suspension or withdrawal of an operating licence (regulation 19 and Schedule 1).
The CAA is required to give the Secretary of State notice of cases where the CAA believes an air carrier seeking or holding an operating licence is not majority owned or effectively controlled by EC member States or their nationals and the CAA is obliged to act according to the determination of the Secretary of State (regulation 4).
The CAA is empowered to prevent aircraft flying where it believes the operator does not possess the necessary operating licence (regulation 5).
A number of offences are created namely, failing to comply with a CAA direction not to fly (regulation 5), operating without the required operating licence (regulation 6) failure to obtain prior approval for making use of or providing aircraft to another undertaking or to comply with the terms of any such approval (regulation 9) and failing to give, or giving false, information (regulations 8 and 10).
Carriers holding a valid operating licence from the CAA are required to ensure when taking passengers who have arranged their travel through a person who is required to possess an Air Travel Organiser’s Licence (ATOL) that such a licence is held, to extend their potential liability under article 17 of the Warsaw Convention 1929 as amended atThe Hague in 1955 to 100,000 Special Drawing Rights and to ensure that passengers onflights arranged for their attendance at association football matches all carry tickets forthe match. Failure to so ensure is created a criminal offence (regulation 11).
The CAA is enabled to apply moral fitness criteria to the grant and maintenance of operating licences.
Provision is made applying sections 64 to 69 of the Civil Aviation Act 1982 with modifications so as to create, in place of the present air transport licence regime created for flights by those sections, a new regime for route licences. An air carrier requiring an operating licence under Council Regulation 2407/92 will require a route licence in order to undertake carriage for reward on a route for which traffic rights are not available under Council Regulation 2408/92 on access for Community air carriers to intra-Community air routes (regulations 20 and 21).
Air transport licences which remain valid by virtue of article 16 of Council Regulation 2407/92 are converted, in relation to certain routes, into route licences for those routes on the day the carrier concerned is granted its operating licence (regulation 22).
Finally a number of consequential amendments are made to the Airports Act 1986, the Civil Aviation Act 1982, the Air Navigation Order 1989 and the Civil Aviation Authority Regulations 1991 (regulation 23 and Schedule 2).
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