The Air Navigation (Overseas Territories) Order 2013

Commercial air transport – general rules

195.—(1) For the purposes of this Order, an aircraft in flight is deemed to fly for the purposes of commercial air transport—

(a) if valuable consideration is given or promised for the carriage of passengers or cargo in the aircraft on that flight;

(b) if any passengers or cargo are carried gratuitously in the aircraft on that flight by an air transport undertaking, not being persons in the employment of the undertaking (including, in the case of a body corporate, its directors) and persons with the authority of the Governor who are either making any inspection or witnessing any training, practice or test for the purposes of this Order, or cargo intended to be used by any such passengers as aforesaid, or by the undertaking; or

(c) for the purposes of Part 3 (other than for articles 35(2) and 36(2)), if valuable consideration is given or promised for the primary purpose of conferring on a particular person the right to fly the aircraft on that flight (not being a single-seat aircraft of which the maximum total weight authorised does not exceed 910kg) otherwise than under a hire-purchase or conditional sale agreement.

(2) Notwithstanding that an aircraft may be flying for the purpose of commercial air transport by reason only of paragraph (1)(c), it is not deemed to be flying for the purpose of the commercial air transport of passengers unless valuable consideration is given for the carriage of those passengers.

(3) A glider is not deemed to fly for the purpose of commercial air transport for the purposes of Part 3 by virtue of paragraph (1)(c) if the valuable consideration given or promised for the primary purpose of conferring on a particular person the right to fly the glider on that flight is given or promised by a member of a flying club and the glider is owned or operated by that flying club.

(4) Notwithstanding the giving or promising of valuable consideration specified in sub-paragraph (1)(c) in respect of the flight or the purpose of the flight it shall—

(a) subject to sub-paragraph (b), for all purposes other than Part 3; and

(b) for the purposes of articles 35(2) and 36(2);

be deemed to be a private flight.

(5) Where a person is carried in or is given the right to fly an aircraft under a transaction effected by or on behalf of a member of an association of persons on the one hand and the association of persons or any member thereof on the other hand, in such circumstances that valuable consideration would be given or promised if the transaction were effected differently, valuable consideration is, for the purposes of this Part, deemed to have been given or promised, notwithstanding any rule of law as to such transactions.

(6) For the purposes of paragraph (1)(a), there shall be disregarded any valuable consideration given or promised in respect of a flight or the purpose of a flight by one company to another company which is—

(a) its holding company;

(b) its subsidiary; or

(c) another subsidiary of the same holding company.

(7) For the purposes of this article a company is a “subsidiary” of another company, its “holding company”, if that other company—

(a) holds a majority of the voting rights in it; or

(b) is a member of it and has the right to appoint or remove a majority of its board of directors; or

(c) is a member of it and controls alone, pursuant to an agreement with other members, a majority of the voting rights in it, or

(d) if it is a subsidiary of a company that is itself a subsidiary of that other company.