Regulations Amending the Canadian Aviation Regulations (ICAO-related Amendments): SOR/2025-226

Canada Gazette, Part II, Volume 159, Number 24

Registration
SOR/2025-226 November 6, 2025

AERONAUTICS ACT

P.C. 2025-785 November 6, 2025

Her Excellency the Governor General in Council, on the recommendation of the Minister of Transport, makes the annexed Regulations Amending the Canadian Aviation Regulations (ICAO-related Amendments) under section 4.9footnote a of the Aeronautics Act footnote b.

Regulations Amending the Canadian Aviation Regulations (ICAO-related Amendments)

Amendments

1 Subpart 5 of Part VI of Schedule II to Subpart 3 of Part I of the Canadian Aviation Regulations footnote 1 is amended by adding the following after the reference “Subsection 605.03(1)”:

Column I

Designated Provision

Column II

Maximum Amount of Penalty ($)
Individual Corporation
Section 605.03.1 1,000 5,000

2 Section 404.16 of the Regulations is amended by adding “or” at the end of paragraph (a), by striking out “or” at the end of paragraph (b) and by repealing paragraph (c).

3 Section 600.01 of the Regulations is amended by adding the following in alphabetical order:

ATIS
means Automatic Terminal Information Service, which is an automated service by which an ATS unit provides current information to aircraft arriving at and departing from an aerodrome; (ATIS)

4 The Regulations are amended by adding the following after section 602.01.1:

Responsibility of Pilot-in-command

602.01.2 (1) The pilot-in-command of an aircraft is responsible for its operation.

(2) A person must not interfere with, or attempt to interfere with, the carrying out of the pilot-in-command’s responsibilities.

Operation of Aircraft — Requirements

602.01.3 (1) Subject to subsection (2), the pilot-in-command of an aircraft must operate the aircraft in accordance with the requirements of Subparts 1 to 3 of this Part.

(2) In the event of an emergency that threatens the safety of the aircraft, persons or property, the pilot-in-command may deviate from the requirements of Subparts 1 to 3 of this Part to the extent necessary to respond to the emergency.

5 (1) The portion of subsection 602.31(1) of the Regulations before subparagraph (b)(i) is replaced by the following:

602.31 (1) The pilot-in-command of an aircraft shall

(2) Subsection 602.31(1) of the Regulations is amended by adding the following after paragraph (b):

(3) Section 602.31 of the Regulations is amended by adding the following after subsection (2):

(2.1) The pilot-in-command of an aircraft is not required to read back an instruction or information referred to in paragraph (1)(c) that is not provided orally if they acknowledge it by electronic means.

6 Paragraph 604.37(2)(b) of the Regulations is replaced by the following:

7 The Regulations are amended by adding the following after section 605.03:

Radio Licence

605.03.1 A person must not operate an aircraft in respect of which a radio licence has been issued under subparagraph 5(1)(a)(i) of the Radiocommunication Act for a radio apparatus that is operated on board the aircraft, unless the radio licence or a copy of it is carried on board.

8 Section 700.01 of the Regulations is amended by adding the following in alphabetical order:

TP 6327
means the document entitled Safety Criteria for Approval of Extended Range Twin-Engine Operations (ETOPS), published by the Department of Transport, or any document that replaces it; (TP 6327)

9 The heading before section 701.16 of the Regulations is replaced by the following:

Extended Diversion Time Operations

10 (1) Subsection 701.16(1) of the Regulations is replaced by the following:

701.16 (1) Subject to subsection (2), unless the flight is conducted wholly within Canadian Domestic Airspace, a foreign air operator must not operate in Canada a multi-engined aeroplane certified for more than 20 passenger seats that is intended to be operated on a route containing a point that is farther from an adequate aerodrome than the distance that can be flown

(2) Paragraph 701.16(2)(b) of the Regulations is replaced by the following:

11 Section 702.84 of the Regulations is amended by adding the following after subsection (2):

(3) If an air operator has established an aircraft operating manual, the standard operating procedures for the aircraft shall form part of that manual.

12 The reference “[702.85 to 702.90 reserved]” after section 702.84 of the Regulations is replaced by the following:

Aircraft Operating Manual

702.85 (1) An air operator may establish and maintain an aircraft operating manual for the use and guidance of crew members in the operation of its aircraft.

(2) An aircraft operating manual must contain

(3) An air operator that has established an aircraft operating manual must ensure that a copy of the manual is carried on board each aircraft to which it relates.

[702.86 to 702.90 reserved]

13 Paragraph 703.98(3)(b) of the Regulations is replaced by the following:

14 Section 703.107 of the Regulations is amended by adding the following after subsection (2):

(3) If an air operator has established an aircraft operating manual, the standard operating procedures for the aircraft shall form part of that manual.

15 The reference “[703.108 and 703.109 reserved]” after section 703.107 of the Regulations is replaced by the following:

Aircraft Operating Manual

703.108 (1) An air operator may establish and maintain an aircraft operating manual for the use and guidance of crew members in the operation of its aircraft.

(2) An aircraft operating manual must contain

(3) An air operator that has established an aircraft operating manual must ensure that a copy of the manual is carried on board each aircraft to which it relates.

[703.109 reserved]

16 Paragraphs 704.123(2)(a) and (b) of the Regulations are replaced by the following:

17 The portion of paragraph 705.25(1)(c) of the Regulations before subparagraph (i) is replaced by the following:

18 The heading before section 705.26 of the Regulations is replaced by the following:

Extended Diversion Time Operations

19 (1) Subsection 705.26(1) of the Regulations is replaced by the following:

705.26 (1) Subject to subsection (2), unless the flight is conducted wholly within Canadian Domestic Airspace, an air operator must not operate a multi-engined aeroplane on a route containing a point that is farther from an adequate aerodrome than the distance that can be flown

(2) Paragraph 705.26(2)(c) of the Regulations is replaced by the following:

20 Paragraph 705.34(1)(b) of the Regulations is replaced by the following:

21 Paragraphs 705.137(2)(a) and (b) of the Regulations are replaced by the following:

22 (1) Paragraph 705.175(c) of the Regulations is amended by striking out “and” at the end of subparagraph (v) and by adding the following after subparagraph (vi):

(2) Subparagraph 705.175(d)(iii) of the Regulations is repealed.

23 Section 801.22 of the Regulations is renumbered as subsection 801.22(1) and is amended by adding the following:

(2) A holder of an ATS operations certificate may provide air traffic services only if they do all of the following in accordance with Standard 821 — Air Traffic Flow Management, published by the Department of Transport:

24 Section 900.07 of the Regulations is replaced by the following:

900.07 A person who operates a remotely piloted aircraft shall ensure that the appropriate ATS unit or user agency is notified immediately any time the aircraft is no longer under the person’s control and inadvertently enters or is likely to enter into Class F Special Use Restricted airspace, as specified in the Designated Airspace Handbook.

25 Section 901.15 of the Regulations is replaced by the following:

901.15 A pilot of a remotely piloted aircraft shall ensure that the appropriate ATS unit or user agency is notified immediately any time the aircraft is no longer under the pilot’s control and inadvertently enters or is likely to enter into controlled airspace.

Coming into Force

26 (1) Subject to subsection (2), these Regulations come into force on the day on which they are published in the Canada Gazette, Part II.

(2) Sections 5, 6, 9 to 12, 14 to 16 and 18, subsection 19(1) and sections 20 to 22 come into force on the first anniversary of the day on which these Regulations are published in the Canada Gazette, Part II.

REGULATORY IMPACT ANALYSIS STATEMENT

(This statement is not part of the Regulations.)

Executive summary

Issues: Misalignments were identified between the Canadian Aviation Regulations (CARs) and the international civil aviation framework maintained primarily by the International Civil Aviation Organization (ICAO). The issues broadly include

  • the absence of oversight on foreign medical examiners;
  • absence of requirements to carry certain documents on board the aircraft;
  • absence of requirements for Subpart 703 (Air Taxi Operations) operators to have facilities for ground and flight training programs;
  • misalignments between Canadian and international terminology;
  • misalignment between Canadian and international crew member interference levels;
  • absence of requirements for pilots to read back certain safety information to the appropriate air traffic service (ATS) unit;
  • absence of requirements for the air traffic service provider to have a system in place for air traffic flow management (ATFM); and
  • the absence of explicit authority for pilot-in-command (PIC) to deviate from rules in the interest of safety.

Description: The Regulations Amending the Canadian Aviation Regulations (ICAO-related Amendments) [the Regulations] will

  • amend the medical examination framework to ensure foreign medical examiners have appropriate credentials and oversight;
  • introduce requirements for certain documents to be carried on board the aircraft (i.e. radio station licence and noise certification data);
  • introduce a requirement in the CARs for Subpart 703 (Air Taxi Operations) operators to have facilities for ground and flight training programs;
  • align regulatory terminology with that used by ICAO (e.g. Extended Twin-Engine Operations vs. Extended Diversion Time Operations);
  • align the crew member interference levels with international partners;
  • introduce requirements for pilots to read back certain safety information and to inform which Automatic Terminal Information Service (ATIS) message they received to air traffic services;
  • introduce requirements for ATS providers to ensure they can manage air traffic flow; and
  • clarify PIC authority and responsibility with respect to aircraft operations.
  • correct editorial errors introduced as a result of previous amendments to the CARs.

Rationale: In 2023, Transport Canada (TC) was audited by ICAO as part of the Universal Safety Oversight Audit Programme (USOAP). The audit evaluated the effectiveness of Canada’s regulatory system and its alignment with international norms. While this audit was not a direct measure of safety indicators or an assessment of unsafe operations within the Canadian aviation industry, it highlighted several areas where regulatory amendments were necessary to align with international requirements. As a result, Canada received an audit score of 65.1%, a significant decline from the last audit performed in 2005 when Canada received a score of 95.3% and was among the top 10 performing countries. Failure to correct the misalignments could result in risk mitigating actions taken by other countries, to the detriment of Canadians and Canadian businesses.

The Regulations will result in costs and benefits to various stakeholders, including air operators, NAV CANADA, and TC. The total present value monetized costs will be roughly $0.29 million over a 10-year analytical timeframe from 2025 to 2034. Small businesses will incur minor monetized costs associated with the carriage of radio station licences ($1,477 across 231 small businesses). The total annualized cost per small business is estimated to be $0.85. Additionally, there will be a minor increase in the administrative burden on business under the one-for-one rule, with an incremental annualized cost of $998.

Issues

The following issues have been identified as areas where the CARs do not align with the international civil aviation framework maintained by ICAO. Failure to correct these issues could prompt ICAO or other member states to take risk mitigation actions to the detriment of Canada, including increased oversight, advisories and restrictions, all of which could negatively affect Canadians and Canadian businesses.

Foreign designated medical examiners

ICAO requires that all State Designated Medical Examiners (DMEs) that submit medical examination reports (MERs) to the State’s medical assessor receive periodic training and evaluations. Currently, TC has a system established for the training and surveillance of Canadian credentialed Civil Aviation Medical Examiners (CAMEs), but does not have a system in place for foreign DMEs. Without an oversight mechanism for foreign DMEs, Canada has no way of ensuring their competence, failing to align with ICAO’s requirements.

Carriage of aircraft radio station licence

Article 29(e) of the Convention on International Civil Aviation (Chicago Convention) mandates that all aircraft engaged in international navigation and equipped with radio apparatus must carry a copy of the aircraft radio station licence. In alignment with Article 30, this licence is issued by Innovation, Science and Economic Development Canada (ISED) and regulated under the Radiocommunication Act and the Radiocommunication Regulations. All Canadian aircraft that fly internationally to other sovereign states require an issued licence. While it is expected that most Canadian aircraft engaged in international navigation already carry a copy of the licence, the requirement to do so is never specified in the Canadian regulatory framework, and thus fails to satisfy the Convention.

Aircraft operating manual

ICAO Standards and Recommended Practices (SARPs) require that approved documents attesting to the noise certification of an aircraft be carried on the aircraft. Canadian operators carrying the aircraft flight manual (AFM), which is developed by the aircraft manufacturer, follow that requirement. However, Canadian operators may use an aircraft operating manual (AOM) instead of an AFM. An AOM differs from an AFM, as it is developed by the aircraft operator and contains tailored information specific to the operator, but does not include the noise certification documents. As a result, operators using an AOM are not aligned with ICAO SARPs.

Furthermore, the CARs do not specify the requirements on the use of the AOM for subparts 702 (Aerial Work) and 703 (Air Taxi Operations) at all. Without clear specifications for these optional manuals, such as the inclusion of certified noise levels, this leads to further non-compliance with ICAO requirements.

Ground and flight training facilities

ICAO requires that the ground and flight training program established by an air operator include facilities. This requirement is already in place for Subparts 704 (Commuter Operations) and 705 (Airline Operations) operators, but there is no such requirement for Subpart 703 (Air Taxi Operations) operators. While it is expected that these training programs already have adequate facilities, ICAO requires states to ensure these facilities are in place by means of regulation.

Extended diversion time operations

When an aeroplane with two turbine engines operating under Subpart 705 (Airline Operations) is on a route that is not wholly within Canadian Domestic Airspace, it must always be within a certain radius of an aerodrome. This ensures that it can land safely in case of an engine failure. However, in accordance with subsection 705.26(2), the aircraft operator may be authorized to fly extended range twin-engine operations (ETOPS). This authorization allows them to fly beyond the normal allowable distance from an aerodrome, permitting for a more direct flight path, increasing efficiency while maintaining safety.

In 2012, ICAO introduced the extended diversion time operations (EDTO) regime, which replaced ETOPS. The key difference is that ETOPS applies only to twin-engined turbine aircraft, while EDTO is more comprehensive and covers aircraft with two or more turbine engines. Currently, there are no Subpart 705 (Airline Operations) operators operating aeroplanes with more than two turbine engines expected to operate on routes where EDTO would be operationally feasible. However, implementing EDTO terminology into the CARs and including aeroplanes with more than two turbine engines will help future proof the CARs should Subpart 705 (Airline Operations) operators opt to introduce aeroplanes with more than two turbine engines into their fleet. It is also necessary to align with international standards.

The title of the manual that specifies the requirements for ETOPS approval and that is incorporated by reference in the CARs is Safety Criteria for Approval of Extended Range Twin-Engine Operations (ETOPS). Given that the manual will only be updated over the next 12 months (including the title), there is a need to include a definition in the CARs to account for future name change of the manual in order to eliminate any potential confusion during the transition period.

Crew member interference levels

The Canadian classifications of “Levels of Interference with a Crew Member” do not align with international standards. In accordance with section 705.175 of the CARs, “the display or use of a weapon” (which can include any object that is used or intended to be used to inflict harm) is a level 4 incident, which is the most severe. However, ICAO guidance defines a level 4 incident as an attempted or actual breach of the flight crew compartment (i.e. attempted hijacking). Furthermore, ICAO defines a level 3 incident as a life-threatening situation, which aligns more closely with “the display or use of a weapon.” While ICAO does not specify whether the “display or use of a weapon” should be classified as a level 3 or 4 incident, other international partners do. For example, the United States and the International Air Transport Association (IATA) classify “the display or use of a weapon” as a level 3 incident.

This misalignment was identified as an issue by the North American Aerospace Defense Command (NORAD). As the levels are currently established, “the display or use of a weapon” is over classified in Canada and, consequently, could prompt a disproportionate response. The responding authority would need to consume valuable response time to verify that the Canadian aircraft declaring a level 4 incident is as severe as an attempted hijacking or if it’s a more benign situation, such as a passenger acting threateningly with a pen, which can be considered a weapon. Therefore, this misalignment may result in the unnecessary launch of military aircraft by international partners to intercept Canadian aircraft.

Read back of safety information and instructions

ICAO SARPs require the flight crew to read back to the air traffic controller clearances and associated safety-related information transmitted by voice. Currently, the CARs specify that the pilot-in-command (PIC) has a responsibility to read back air traffic control (ATC) clearances. While safety information is commonly read back as a good airmanship practice, nothing in the CARs makes it mandatory. Specifically, there is no requirement to read back runway hold-short instructions, runway-in-use information, altimeter settings and transponder codes. A misunderstanding relating to any of these four pieces of information could lead to serious safety concerns. For example, a misunderstanding of the runway-in-use information could result in an incorrect runway being used, leading to potential collisions. A misunderstanding relating to the transponder code could result in the wrong aircraft being tracked by ATC, leading to confusion and potential loss of situational awareness. Read back helps prevent these situations by verifying that messages were accurately received.

Runway-in-use information and altimeter settings are often transmitted via ATIS, a system that automatically sends pre-recorded messages to the aircraft. Since ATIS messages repeat continuously until the information becomes outdated, the chance of misunderstanding is reduced. Additionally, as ATIS messages are not transmitted by voice, the information they provide is not subject to ICAO’s read back requirements. However, currently there is no mandate for pilots to advise which ATIS message they last received upon initial contact with the ATS unit serving the aerodrome of intended landing or departure. This could result in the unnecessary transmittal and read back of information that would otherwise be found in the ATIS message.

Furthermore, ATIS is not currently defined in the CARs. Introducing an exception to the read back for information transmitted through ATIS could create confusion if the definition of ATIS is not included in the CARs.

Air traffic flow management

ICAO SARPs require that air traffic flow management (ATFM) be implemented when air traffic demand exceeds or is expected to exceed the capacity of air traffic control services. ATFM is a system used by ATC agencies to ensure the safe and efficient movement of air traffic. Its primary goal is to manage the flow of aircraft within controlled airspace, preventing congestion and delays while ensuring safety. While NAV CANADA already implements ATFM when needed, there is no requirement in the CARs for them to do so, which results in a misalignment with ICAO SARPs.

Similarly, the 2023 USOAP audit highlighted the absence of regulatory requirements to mandate the ATS provider to assess the capacity of the ATS system, including the required staff, to ensure they have the necessary resources to support safe aircraft operations. While NAV CANADA frequently assesses its capacity, the absence of a regulatory requirement results in a misalignment with ICAO SARPs.

Pilot-in-command authority and responsibility

ICAO SARPs state that the PIC of an aircraft is responsible for the operation of the aircraft in accordance with the rules of the air unless departure from those rules is absolutely necessary in the interest of safety. While, in practice, the PIC is expected to take any necessary measures in the interest of safety, the CARs do not explicitly outline their authority to deviate from the rules of the air when needed to do so for emergency safety reasons. The absence of explicit authority could lead to confusion, which could limit the PIC’s ability to make critical decisions in an emergency.

ICAO SARPs also state that the PIC is the final authority as to the operation of the aircraft while in command of the aircraft. The CARs, on the other hand, state that the PIC shall comply with and acknowledge all ATC instructions and only permit a deviation to the extent necessary to carry out a collision avoidance manoeuvre. Without amendments to the CARs clarifying that the PIC is the final authority on the operation of the aircraft, the CARs may be misconstrued to assert that ATC is the final authority.

Technical corrections

Editorial errors to section 900.07 and section 901.15 of the CARs resulted from the incorrect sequencing of the coming into force of amendments in SOR/2025-70, Regulations Amending the Canadian Aviation Regulations (RPAS – Beyond Visual Line-of-Sight and Other Operations) on April 1, 2025, and SOR/2025-98, Regulations Amending the Canadian Aviation Regulations (Parts I, III, IV and VI to VIII – Air Navigation Services) on March 26, 2025. As a result, the approved amendments made in SOR/2025-98 to those provisions could not be realized.

Background

On December 7, 1944, Canada and 51 other countries signed the Chicago Convention to foster cooperation in international civil aviation. This led to the establishment of ICAO, a United Nations agency, dedicated to promoting safe and efficient international aviation and overseeing the Chicago Convention. By 2024, the Convention had been signed by 193 State parties, all of which are part of ICAO.

As outlined in Article 37 of the Chicago Convention, Canada is required to promulgate and update its national legislation and guidelines in alignment with the SARPs adopted by ICAO, and to implement them in a consistent, timely and organized manner.

Introduced in 1996, the CARs outline the requirements that govern civil aviation in Canada. The CARs touch on all aspects of aviation, including aircraft identification and registration, airport operations, private and commercial operations, pilot training and licensing, as well as air navigation services. The CARs are designed to align with the SARPs established by ICAO.

In January 1999, ICAO launched the USOAP to address concerns about the adequacy of aviation safety oversight around the world. Through the USOAP, ICAO conducts regular and mandatory audits of ICAO member state safety oversight systems. The audit evaluates eight critical elements (CEs) that make up a state’s safety oversight system and assigns an Effective Implementation (EI) score based on the State’s adherence to the Chicago Convention and associated SARPs, with respect to the CEs. The EI score is a globally recognized measure of a country’s adherence to international aviation safety standards and practices, and a high score can improve a country’s reputation in the global aviation community.

In May 2023, ICAO conducted an audit in Canada, evaluating the existing CARs and associated standards. Through the 2023 USOAP audit, several areas were identified in the Canadian regulatory framework that do not align with the Chicago Convention and the associated SARPs. Due to these shortfalls, Canada’s EI score dropped significantly from 95.3% in 2005 to 64.3%. Failure to correct those misalignments could result in risk mitigating actions taken by other countries to the detriment of Canadians and Canadian businesses.

Standards and recommended practices

SARPs refer to the standards and recommended practices that make up the 19 annexes to the Chicago Convention. SARPs are specifications for physical characteristics, configurations, materials, performance, personnel or procedures where uniform application is beneficial for safety and regularity of international navigation. States are required to comply with ICAO standards in accordance with Article 37 of the Chicago Convention, and any differences from the standards must be notified to ICAO. Recommended practices are non-mandatory and are intended to provide the means of compliance with the standards. Member states are encouraged to follow these recommended practices, as they promote safety and efficiency, but they have the flexibility to adapt or implement them according to their specific circumstances or capabilities.

Civil aviation medical examiners

To ensure that an individual is fit to conduct aviation-related activities, a medical examination is performed by State DMEs. Results from medical examinations are then sent to a centralized state medical assessor who can issue or renew medical certificates, proving that an individual is fit to exercise the privileges of an aviation licence.

Canadian DMEs are known as civil aviation medical examiners (CAMEs). To become a CAME, a qualified physician must submit an application and conduct an interview with a TC Civil Aviation medicine regional office. CAMEs are appointed on a need basis. If a physician is approved for the role, they receive an official letter of appointment along with full CAME authority.

To facilitate CAME duties, TC introduced the electronic medical examination report (eMER) system, which streamlined the process of submitting and reviewing MERs. The system, which is entirely electronic, greatly improved efficiency and largely eliminated the use of paper MERs. The system originally only applied to Canadian-based CAMEs but in September 2024 it was expanded to include CAMEs outside Canada.

Prior to the expansion, it was estimated that less than one percent of all MERs received by TC were from foreign-based CAMEs and foreign DMEs. Over the last year, TC has been appointing additional foreign physicians, as CAMEs in countries that are sending the most MERs to TC, enabling greater access to the more efficient eMER system. The onboarding process for these new CAMEs is not onerous and follows existing practices at no cost to the physician, involving a self-guided virtual course and a short virtual onboarding session.

NAV CANADA

NAV CANADA is a privately run, non-profit corporation that owns and operates Canada’s civil air navigation system. Its mandate encompasses several key responsibilities, such as air traffic management, air navigation services, aeronautical information publications and airport services.

Automatic terminal information service

An automatic terminal information service (ATIS) is a service at many airports that consists of a repetitive and continuous broadcast of location-specific aeronautical information via a pre-recorded or artificial voice. The ATIS helps reduce radio congestion by allowing pilots to receive updates without needing to communicate with an ATS unit for routine details. The information contained in an ATIS message often includes the name of the airport, the runway-in-use, altimeter settings, weather information and other important notices, such as temporary restrictions. An ATIS message will also contain a message-specific letter indicator, used to identify the message. Throughout the day, the message is changed so that it does not contain outdated information. When the message changes, so does the letter indicator.

Air traffic flow management

Air traffic flow management (ATFM) is a system used by air traffic control agencies such as NAV CANADA to ensure the safe and efficient movement of air traffic. Its primary goal is to manage the flow of aircraft within controlled airspace, preventing congestion and delays while ensuring safety.

ATFM involves several key components:

  1. Traffic management initiatives (TMIs): These are strategies or measures that are temporarily applied without changing the level of service of an ATC unit taken to balance demand with available airspace or airport capacity. Examples include rerouting aircraft, adjusting flight speeds, or delaying departures. A TMI can be a short-term measure that is applied when circumstances limit capacity for a few hours, or it can be medium-term when capacity is limited for a few weeks. In both cases, it is possible to predict when capacity will return to normal without changing the level of service.
  2. Capacity and demand balancing: ATFM ensures that air traffic demand doesn’t exceed the capacity of air traffic control sectors, airports or airspace. This is done by predicting traffic flows and adjusting operations accordingly.
  3. Delay management: When delays occur due to weather, traffic volume or technical issues, ATFM helps manage those delays by adjusting flight schedules, rerouting aircraft, or spacing flights more effectively.
  4. Collaborative decision-making: ATFM often works in coordination with airlines, airport authorities, and other stakeholders to make decisions that benefit all parties, minimizing the impact of delays and congestion on passengers and flights.

Various events or situations, such as bad weather or equipment failures, could lead to the implementation of a TMI. These events are currently recorded locally, but there is no standard format across the country for how this information is recorded or shared, except at the four major airports (Toronto, Vancouver, Montréal and Calgary international airports). NAV CANADA has been working on a process to standardize the records across the country and make the information publicly available to its stakeholders upon request. The process is expected to be functional by the end of 2027.

Extended diversion time operations

The extended diversion time operations (EDTO) regime allows aircraft with two or more turbine engines, if authorized, to fly beyond the normal threshold distance from an aerodrome. For aircraft with two turbine engines, the threshold distance is the distance that can be flown in 60 minutes at the one-engine-inoperative cruise speed. For aircraft with three or more engines, it is the distance that can be flown in 180 minutes at the all-engine cruise speed. These threshold distances ensure that if the aircraft experiences an engine failure, it can still safely land at an aerodrome. To receive EDTO (or formerly ETOPS) authorization, the aircraft must have an appropriate maintenance program, and its crew must have appropriate training and operational procedures.

Currently, the Safety Criteria for Approval of Extended Range Twin-Engine Operations (ETOPS) manual contains the criteria that an operator must comply with to fly ETOPS. This document is incorporated by reference into the CARs and will be amended with EDTO terminology and considerations for aircraft with three or more engines.

Incorporation by reference

Incorporation by reference is a drafting technique that introduces the content of an internal (TC) or external (non-TC) document (such as a policy, directive, list or standard) into a regulation without having to reproduce the document’s text in the regulation. If a document is incorporated by reference into regulations, the incorporated wording has the same effect as if it appeared in the regulations.

Administrative monetary penalties

Administrative monetary penalties (AMPs) are an enforcement tool for addressing violations of a regulatory nature. AMPs allow TC to take a measured and efficient approach, which tailors the enforcement response to the seriousness of the violation, through the issuance of monetary penalties, as an alternative to recommending prosecution, to anyone found to have violated requirements. AMPs allow the violator to choose to pay the penalty without having to appear in court. They are designed to bring regulated entities into compliance without the legal ramifications of a criminal record or imprisonment. AMPs help to promote compliance while minimizing the regulatory burden on Canadians and industry. The use of AMPs to enforce the CARs is consistent with the enforcement approach used by TC in other modes of transportation.

Objective

The objective of the Regulations is to improve the alignment of the Canadian civil aviation regulatory framework with the international framework maintained by ICAO. The Regulations will help the Government of Canada meet its international obligations as a signing party to the Chicago Convention and address some of the findings of the 2023 USOAP audit.

Description

The Regulations contain amendments to various parts of the CARs, the majority of which are deemed non-discretionary and non-controversial with little or no impact on industry operations. The amendments constitute part of the corrective actions that will address issues identified as a result of the audit. All the amendments are designed to improve alignment with the Chicago Convention and the associated SARPs.

Foreign designated medical examiners

The Regulations will repeal paragraph 404.16(c) of the CARs, which currently allows foreign DMEs to submit MERs to TC. Foreign DMEs will be able to submit MERs to TC only after applying for and obtaining Canadian CAME designation. This will ensure that all medical examiners that submit MERs to TC will have appropriate credentialling and oversight.

Carriage of aircraft radio station licence

The Regulations will introduce a new provision to the CARs under Subpart 605 (Aircraft Requirements) that will require the carriage of a physical or electronic copy of the aircraft radio station licence on-board the aircraft if the licence has been issued for that aircraft. This new provision will have no impact on the issuance of the licence.

Aircraft operating manual

The Regulations will amend subsections 604.37(2), 704.123(2), and 705.137(2) of the CARs to require that the aircraft operating manual (AOM), if carried on board instead of the aircraft flight manual (AFM), must include documentation on the certified noise levels. Additionally, the Regulations will establish new sections 702.85 and 703.108 with the requirements for the use of an AOM instead of an AFM for Subparts 702 (Aerial Work) and 703 (Air Taxi Operations), including the noise documentation requirement.

Ground and flight training facilities

The Regulations will amend paragraph 703.98(3)(b) of the CARs to include the requirement for Subpart 703 (Air Taxi Operations) operators to ensure that adequate facilities are provided for their ground and flight training programs. Wording will be in alignment with similar provisions, paragraphs 704.115(3)(b) and 705.124(3)(b). The requirements for the facility are elaborated on in the Commercial Air Service Standards, which are incorporated by reference, stipulating that the facility must be adequate to ensure that training objectives can be achieved, quiet, properly lit and equipped with suitable seating, desks and training aids.

Extended diversion time operations

The Regulations will amend sections 701.16, 705.26 and 705.34 of the CARs to incorporate EDTO terminology into the existing requirements relating to ETOPS. Additionally, the amendments to sections 701.16 and 705.26 of the CARs will include aeroplanes with more than two engines and the associated method of determining threshold distance.

The Regulations will amend section 700.01 of the CARs with a new definition for TP 6327 to account for any name changes to the Safety Criteria for Approval of Extended Range Twin-Engine Operations (ETOPS) manual, as follows:

TP 6327
means the document entitled Safety Criteria for Approval of Extended Range Twin-Engine Operations (ETOPS), published by the Department of Transport, or any document that replaces it; (TP 6327).

References to the Safety Criteria for Approval of Extended Range Twin-Engine Operations (ETOPS) manual will be replaced with references to TP 6327. This will ensure that the manual is properly referenced in the CARs if the title of the manual is changed in the future.

Crew member interference levels

The Regulations will amend section 705.175 of the CARs to reclassify “the display or use of a weapon” from a level 4 incident to a level 3 incident.

Read back of safety information and instructions

The Regulations will amend section 602.31 of the CARs to include a requirement for pilots to read back runway hold-short instructions, runway-in-use or the assigned runway information, transponder codes and altimeter settings to the appropriate ATS unit. This new read back requirement will not be required for information that is not provided orally if it is acknowledged by electronic means, nor will it be required if the information was broadcast via ATIS. Additionally, the Regulations will require pilots to advise which ATIS message identifying letter they last received upon initial contact with the ATS unit serving the aerodrome of intended landing or departure.

The Regulations will add the following definition for ATIS to section 600.01 of the CARs:

ATIS
means Automatic Terminal Information Service, which is an automated service by which an ATS unit provides current information to aircraft arriving at and departing from an aerodrome; (ATIS)

Air traffic flow management

The Regulations will introduce new provisions to Subpart 801 (Air Traffic Services) of the CARs to require the holder of an air traffic service operations certificate to

The Regulations will indicate that these requirements must be performed in accordance with the incorporated by reference Standard 821 – Air Traffic Flow Management, which was developed in collaboration with NAV CANADA. The standard outlines the criteria that must be assessed, how the procedures should be developed, how ATFM must be implemented, what information must be made publicly available and what competencies and tasks are required to adequately perform air traffic management functions.

The above requirements will mirror NAV CANADA’s existing practices and will therefore result in marginal efforts for NAV CANADA. That effort will consist of providing initial information to TC regarding their ATFM procedures and occasionally providing data to TC on a by request basis. Oversight will consist of verifying location-specific records from NAV CANADA consisting of ATFM procedures, records of training and proficiency of personnel performing ATFM tasks, the records of annual assessment of staffing, instances of TMIs and access to the publicly available capacity data.

Pilot-in-command authority and responsibility

The Regulations will introduce a new provision specifying that the PIC of an aircraft is responsible for the operation of the aircraft and that no person can interfere or attempt to interfere with that responsibility.

The Regulations will specify that the PIC must follow all requirements in Subparts 601 (Airspace), 602 (Operating and Flight Rules) and 603 (Special Flight Operations) except in the event of an emergency that threatens the safety of the aircraft, persons or property, in which case the PIC may deviate from the requirements to the extent necessary to respond to the emergency.

Technical corrections

The Regulations will correct the editorial errors by reintroducing the broader terminology of “air traffic services unit” (ATS unit) in section 900.07 and section 901.15.

Administrative monetary penalties

The Regulations will designate the new section 605.03.1 of the CARs, which specifies that a copy of the aircraft radio station licence must be carried on board the aircraft (if a licence has been issued for that aircraft), as a requirement enforceable via AMPs. The maximum amount of the penalty for a violation will be $1,000 for an individual and $5,000 for a corporation. The designation of section 605.03.1 as an AMP will harmonize this provision with existing AMPs in the CARs pertaining to the carriage of other documents, such as journey logs and certificate of registration.

Regulatory development

Consultation

On May 9, 2024, TC shared a Notice of Proposed Amendment (NPA) 2024-007 with over 1 700 industry members/associations, through the Canadian Aviation Regulation Advisory Council (CARAC) distribution list, requesting feedback on the various issues outlined in this Regulatory Impact Analyst Statement. The NPA included proposed solutions, including potential regulatory amendments, as well as some changes to documents incorporated by reference similarly designed to address the USOAP audit findings. Stakeholders were given 34 days to provide feedback. The consultation closed on June 11, 2024.

At the end of the consultation, TC received 18 comments from 8 stakeholders, including an industry association, a major airline and two major aircraft manufacturers. Stakeholders expressed broad support for harmonization with ICAO standards and identified areas where further harmonization may be beneficial in the future.

While stakeholders did not raise any substantive concerns about the proposed amendments, some operators noted that, since some of the amendments would require modifications to their manuals, a compliance period would be needed before the requirements come into force. In response to these comments, the Regulations will provide a staggered coming into force that will allow for a one-year implementation period for the proposed amendments that require updates to industry manuals. While the changes to the manuals are expected to be minor and could be completed fairly quickly, the one-year implementation time will allow for those modifications to be made alongside other necessary or regular manual updates.

Stakeholders additionally recommended that the carriage of the aircraft radio station licence and other documents be allowed through electronic means. TC agreed with this recommendation. The Regulations will specify that a copy of the radio station licence can be carried. The copy carried can be electronic or physical.

One stakeholder noted that the change to foreign medical examiner requirements could impact the availability of viable medical examiners in foreign states, which could in turn raise costs for Canadian licensed pilots seeking to renew their medical certification outside Canada. The stakeholder recommended that the Regulations exempt aviation medical examiners in the United States from the new requirement. While TC acknowledges that the availability of medical examiners could be temporarily impacted, an exemption to medical examiners in the United States would not align with international standards, which require each state to establish a system to ensure medical examiners receive periodic training and evaluations. However, to mitigate the impacts of the change and ultimately speed up the renewal process for Canadian pilots outside Canada, TC has already begun proactively working with foreign physicians to initiate and complete the CAME designation process. Additionally, telemedicine with a CAME remains a way to address demand for medical certificate renewals without geographic limitation. Telemedicine relies on a medical history review of the applicant, allowing the physician to identify health concerns impacting the pilot’s ability to fly. The telemedicine certificate renewal can be provided immediately by email rather than stamped on the pilot’s Aviation Document Booklet. It should be noted that certificate holders must undergo an in-person examination to renew their certificate if their last renewal were done by telemedicine, which means that every other year pilots must see an in-person CAME.

In addition to the CARAC consultation, TC held specific consultations with NAV CANADA in the summer and fall of 2024 to gain a better understanding of the impacts related to the proposed read back requirements, and to ensure the standards associated with ATFM and ATS capacity are in line with their existing practices. Overall, NAV CANADA expressed broad support for harmonizing Canada’s regulatory framework with ICAO standards. NAV CANADA provided valuable feedback in terms of a potential administrative impact, identifying that they would need to update some documents due to the new read back requirements. NAV CANADA also provided data on the number of aerodromes possessing ATIS and other systems that allow for electronic acknowledgement. NAV CANADA also suggested that an additional rule be included, requiring pilots to inform ATS of the ATIS message they received. Given that such a rule would likely reduce the amount of information verbally transmitted and read back, TC agreed with the suggestion. Finally, NAV CANADA indicated that it is currently developing a process to standardize across the country the collection and presentation of data related to events or situations that lead to the implementation of a TMI. While this data is already being collected and presented at the four major airports in Canada (Toronto, Vancouver, MontrĂ©al and Calgary), NAV CANADA requested additional time with respect to the requirements to make these records available to stakeholders at other airports. TC agreed and added a clause in the incorporated standard that records pertaining to TMI implementation must be kept and made available to affected stakeholders as of January 1, 2028.

At the request of NAV CANADA, TC published NPA 2024-012 on October 29, 2024, to consult on the ATFM and ATS capacity standards, which will be incorporated by reference in the CARs through the Regulations. The consultation closed after 30 days on November 27, 2024. Comments were received from an airport operator, an airline association, two unions representing air traffic service workers and a union representing pilots. Stakeholders expressed broad support for harmonization with ICAO. The unions expressed support for TC’s recent actions and intent to regulate NAV CANADA’s approach to ATC staffing. They suggested including long-term planning requirements for staffing (i.e. five years) and for fatigue management considerations. These components were not added to the standard, as it is not TC’s intention to dictate long-term staffing requirements, but rather what to do if air traffic flow exceeds the capacity for service and how to assess that capacity. As part of the capacity assessment, the standard will specify that traffic demand and staffing requirements must be reassessed at least yearly. The fatigue component is currently undergoing policy assessments and will be brought forward in a separate regulatory proposal when the work has been completed.

An airline association required further clarity with respect to data collection required to support capacity assessments, highlighting the need to minimize any administrative and technological burdens on air carriers to provide this data. Given that the requirements mirror NAV CANADA’s existing process, no new administrative or technological burdens will be imposed on air operators for data collection.

Prepublication in the Canada Gazette, Part I

Prepublication is intended to provide a final opportunity for comments on proposed regulations, determine whether any stakeholders were missed in the consultative process and examine the extent to which the proposal is in keeping with the original consultations. The Regulations were exempted from prepublication in the Canada Gazette, Part I, on the following basis:

Indigenous engagement, consultation and modern treaty obligations

In accordance with the Cabinet Directive on the Federal Approach to Modern Treaty Implementation, analysis was undertaken to determine whether the Regulations are likely to give rise to modern treaty obligations. The assessment examined the geographic scope and subject matter of the Regulations in relation to modern treaties in effect and no implications or impacts on modern treaties were identified.

A United Nations Declaration on the Rights of Indigenous Peoples Act (UNDA) assessment was conducted to identify any potential impacts of the Regulations on the rights and interests of Indigenous peoples. No direct, indirect, hidden or unintended effects were found. The Regulations do not intersect with the rights and interests of First Nations, Inuit and MĂ©tis Peoples as set out in the UN Declaration.

Instrument choice

In accordance with Article 37 of the Chicago Convention, as a contracting state, Canada is required to promulgate and update its legislation, regulations, standards and guidelines to be in alignment (to the highest extent practicable) with the SARPs adopted by ICAO, and to implement them in a consistent, timely and organized manner.

The 2023 USOAP audit identified a number of regulatory gaps and misalignments in the Canadian regulatory framework relative to ICAO SARPs that can only be addressed through regulatory amendments. Therefore, regulatory intervention is the only appropriate option for those issues.

The new standard on air traffic flow management was incorporated by reference, rather than inserted as new requirements directly into the Regulations. The incorporation by reference ensures that any advances in ATFM best practices can quickly and efficiently be incorporated into the standard as required.

The requirements pertaining to Air Taxi ground and flight training facilities were incorporated by reference to align with the requirements found in other sections of the CARs.

Regulatory analysis

Benefits and costs

The Regulations will result in costs and benefits to various stakeholders, including air operators, NAV CANADA, and TC. The total present value monetized costs will be roughly $0.29 million over a 10-year period from 2025 to 2034. The estimated impacts of each provision are detailed throughout this section.

Analytical framework

The costs and benefits of the Regulations have been assessed in accordance with the Policy on Cost-Benefit Analysis of the Treasury Board of Canada Secretariat (TBS) by comparing the baseline against the regulatory scenario. The baseline scenario depicts what is likely to happen in the future if the Government of Canada does not implement the Regulations. The regulatory scenario provides information on the expected outcomes of the Regulations.

The analysis estimates the impact of the Regulations over a 10-year period from 2025 to 2034. A year in this analysis constitutes a 12-month period starting from the registration date of the Regulations indicated in the Canada Gazette, Part II, to the same date in the following year. Unless otherwise stated, all values are expressed in present values in 2023 Canadian dollars and are discounted to the base year of 2025 at a 7% discount rate for the 10-year period between 2025 and 2034. Note that some values presented in text and tables may not add up exactly due to rounding. Costs and benefits are considered for domestic stakeholders only; any costs or benefits to foreign stakeholders are considered out of the scope of the analysis. The formula used to calculate annualized values under the Cost-benefit statement and the small business lens follows the methodology prescribed in TBS’s Canada’s Cost-Benefit Analysis Guide for Regulatory Proposals (PDF) where impacts occurred in the first period are undiscounted.

Baseline scenario and regulatory scenario

Foreign designated medical examiners

Historically, TC has received an average of 30 paper-based MERs from foreign DMEs per month, with roughly 40% of them either being incomplete or illegible that have resulted in resubmissions and increased work for TC in the form of processing time. This work has included notifying impacted applicants and returning MERs with accompanying letters to explain their deficiencies.

Over the last year, TC has been appointing additional CAMEs in countries that are sending the most MERs from medical examiners who are not credentialled in Canada. Therefore, it is assumed in the baseline that only a small number of MERs from foreign DMEs would be received over the analytical timeframe. Further, TC’s eMER system became available to foreign-based CAMEs in September 2024, which has reduced the amount of paper forms that TC receives and the time spent reviewing MERs, as information is received electronically and all fields must be completed before the file can be submitted to TC. With this system in place, it is to the applicant’s advantage to use a CAME instead of a non-credentialled foreign DME, as the process would be faster. However, in the baseline scenario, Canada would remain in misalignment with ICAO standards by allowing foreign physicians without Canadian oversight to continue submitting MERs to TC.

The Regulations will not allow any MERs from foreign DMEs, only those from CAMEs, which are expected to come only via the eMER system. These changes will act as the final step to moving the MER process entirely to an electronic CAME-based model. This will provide certainty to TC that paper forms will no longer be received. As a result of the past efforts to appoint additional CAMEs, TC is not anticipating an increase in CAME applications once the Regulations come into force. The applicants are charged directly by CAMEs and Foreign DMEs for the costs of their services, and the fees charged are comparable within the same local area/region. Given that the small number of MERs from foreign DMEs under the baseline scenario would be completed by CAMEs under the regulatory scenario, those applicants may incur different costs/fees depending on how/where they access services (e.g. local region, telemedicine). However, any such impact is expected to be minimal given (i) the small number of affected applicants; (ii) TC’s appointing of additional foreign physicians as CAMEs in countries that are sending the most MERs; and (iii) telemedicine option.

Carriage of aircraft radio station licence

Based on data from ISED,footnote 2 the Regulations would apply to roughly 875 unique aircraft radio station licences. These licences are split across industry (770), crown corporations (16), as well as both provincial and federal government agencies (89). In the baseline scenario, it is assumed that operators have the licence but may not carry it, which would be inconsistent with ICAO requirements. Whereas in the regulatory scenario, the licence will need to be downloaded and stored electronically in an easily accessible location for presentation. This will represent a minor incremental effort that has been outlined in the “Costs” section below.

TC officials will need to be made aware of the AMPs being implemented for this requirement. However, this minor effort is expected to take place prior to the registration of the Regulations and is therefore not included in the analysis. This new requirement will result in a minor effort by TC inspectors to check the air operators’ compliance. This effort is expected to be negligible.

Aircraft operating manual

In the baseline scenario, CARs Subparts 704 (Commuter Operations) and 705 (Airline Operations) operators who use AOMs would continue to do so without the inclusion of approved noise certification data, which would be inconsistent with ICAO requirements. Based on TC subject matter expertise, while all 36 Subpart 705 operators are estimated to use AOMs, it is assumed that just half of the 78 Subpart 704 operators (39) use themfootnote 3. In the regulatory scenario, one year after the publication of the Regulations in the Canada Gazette, Part II, those air operators will need to have updated their AOMs to include this information. This represents an incremental effort, which is monetized in the “Costs” section.

No incremental impacts are estimated over the analytical timeframe for CARs Subparts 702 and 703 operators, as there is no expected usage of AOMs in those subparts.

TC will also incur minor costs associated with approving the revisions to the AOMs, described in further detail in the “Costs” section.

Ground and flight training facilities

The provisions in the Regulations related to ground and flight training facilities represent an alignment in language with similar sections for Subparts 704 (Commuter Operations) and 705 (Airline Operations) operators. Based on TC subject matter expertise and experience, and given the requirements are purposefully designed to be simple and flexible, it is expected that the facilities for the roughly 471 Subpart 703 operators in Canada will be deemed adequate. Given this, while the regulatory scenario would align the CARs with ICAO standards, there are no practical differences between the baseline and regulatory scenarios, and therefore no incremental costs or benefits expected.

Extended diversion time operations

There are currently no civil Canadian air operators with aircraft with more than two turbine engines expected to operate on routes where EDTO would be operationally feasible. This is not expected to change over the analytical timeframe. Given this, while the regulatory scenario would align the CARs with ICAO standards, no incremental change is expected for Canadian air operators in the regulatory scenario.

There are currently 149 foreign air operator certificates (FAOCs) for foreign carriers that hold this authorization. When these FAOCs are up for renewal, they will need to be adjusted slightly to adhere to the new requirements. This may result in minor costs to foreign carriers. However, in accordance with TBS’s Canada’s Cost-Benefit Analysis Guide for Regulatory Proposals (PDF), foreign stakeholders are not considered to have standing in Canada and, therefore, costs to foreign stakeholders are not included in the cost-benefit analysis.

There will be incremental effort for TC to update guidance materials related to EDTO. These tasks are described in further detail in the “Costs” section.

Crew member interference levels

In the baseline scenario, the Canadian manuals would continue to reflect the misaligned classification, which could result in confusion between the aircraft crew and the responding authority when flying in foreign airspace, potentially leading to the unnecessary launch of military aircraft.

In the regulatory scenario, roughly 36 air operatorsfootnote 3 will be required to update their COMs and FAMs within one year following the publication of the Regulations in the Canada Gazette, Part II. TC will need to approve these revisions. These updates will correct the classification misalignment and ensure no confusion for foreign states. These incremental changes will lead to both costs and benefits, described in the appropriate sections below.

Read back of safety information and instructions

In the baseline scenario, it is expected that air operators read back most of the safety-critical information they receive, but would not be required to by means of regulations, which is inconsistent with ICAO requirements.

According to NAV CANADA’s own practices, a read back of hold-short instructions is already required of departing aircraft and is requested by the ATC should it not be read back initially. This has led to nearly full compliance in the baseline.

Based on aircraft movement data and information provided by NAV CANADA, roughly 80% of all air traffic in-scope of the Regulations is flying into or out of airports with ATIS, which broadcasts pre-recorded information on a loop to aircraft that can include, among other things, runways-in-use and altimeter settings. That said, the ATC may still provide this information and require it to be read back. To ensure impacts are not underestimated, it is assumed in the baseline that the ATC provides this information and requires read back. Further, roughly 62% of air traffic is out of airports equipped with pre-departure clearance (PDC). The PDC electronically provides other pieces of information to the aircraft, including the transponder code. In these airports, the transponder code does not need to be read back if provided via PDC.

Additionally, NAV CANADA has indicated that the other three pieces of information listed in the Regulations (transponder codes, altimeter settings and runways-in-use) are commonly read back, albeit not requested. The baseline levels of read back are provided below in Table 1. As no official data on read backs exist, these baseline estimates were developed in collaboration with NAV CANADA.

Table 1: Baseline percentages of read backs of safety-critical information
Information/Flight Rules Instrument Flight Rules (IFR) Visual Flight Rules (VFR) Runway 88 table 2 note a
Hold-short instructions 100% 98% N/A
ATIS Identifier table 2 note b 90% 75% N/A
Transponder codes 99% 90% 90%
Altimeter settings 90% 40% 40%
Runways-in-use 99% 70% N/A

Table 2 note(s)

Table 2 note a

Runway 88 refers to flights that communicate with the tower while transiting the tower control zone to another destination without landing at the reporting airport. It is assumed that 90% of runway 88 movements receive altimeter settings and 40% receive a transponder code. It is not assumed that they receive any of the other safety-critical information.

Return to table 2 note a referrer

Table 2 note b

The ATIS is not technically a read back, but rather a requirement for the pilot to inform ATS which identifier they have on initial contact.

Return to table 2 note b referrer

The Regulations will require pilots to provide the current ATIS identifier and, in alignment with ICAO standards, read back safety information and instructions, including runway hold-short instructions, runways-in-use information, transponder codes and altimeter settings if the voice message originated from an ATC unit. For movements taking place at airports equipped with PDC, it is therefore assumed in the analysis that no incremental time will be taken related to the read back of transponder codes, as they would not be received via voice message from the ATC unit. There could also be minor benefits to NAV CANADA associated with reducing their need to request read backs for hold-short instructions. These requirements will come into force one year after the publication of the Regulations in the Canada Gazette, Part II. The estimated incremental time required for air operators has been described below in the “Costs” section.

Air traffic flow management

While the requirements associated with ATFM would align the CARs with ICAO standards, they are based on NAV CANADA’s existing ATFM practices and, therefore, are not expected to necessitate any operational changes for NAV CANADA. NAV CANADA will, however, be required to provide additional information to TC upon request. While NAV CANADA already makes ATFM information for the four major airports in Canada (Toronto, Vancouver, MontrĂ©al and Calgary) available to stakeholders daily, the Regulations will expand the scope of the requirements to require all NAV CANADA units to record and collect information starting on January 1, 2028. This expansion will align with the implementation of the process that NAV CANADA has been developing to standardize the collection and presentation of data related to events or situations that lead to the implementation of TMIs across the country and, therefore, no incremental effort is anticipated beyond that baseline effort.

Additionally, NAV CANADA will need to provide initial information to TC regarding their ATFM procedures. These administrative tasks will constitute incremental costs that have been analyzed and provided in the “Costs” section.

TC will also incur some minor incremental costs, detailed in the “Costs” section, associated with reviewing both the initial information and the periodic requested information.

Pilot-in-command authority and responsibility

The requirement associated with PIC authority and responsibility is administrative in nature, formalizing existing processes followed by PIC, aligning the CARs with ICAO standards. There will be no change in actions taken by PIC and, therefore, no incremental impacts are anticipated for pilots or TC.

Technical corrections

The technical corrections are editorial in nature and are not expected to result in any incremental impacts.

Costs

The total estimated monetized cost of these Regulations is $0.29 million, which will be incurred by air operators, NAV CANADA and TC.

Carriage of aircraft radio station licence

There will be a small incremental effort for in-scope air operators upon publication of the Regulations to download their licence and ensure it is easily accessible. As aircraft radio station licences are issued electronically by ISED and the Regulations will allow the licence to be carried electronically, this effort is expected to be minimal. It is assumed that operators will require 5 minutes in the first year of the analytical timeframe. At an estimated hourly wage of $76.71 (including 25% overhead), it is estimated that this requirement will result in costs of $5,594 across all industry air operators.

Aircraft operating manuals

It is expected that there will be costs for CARs Subparts 704 (Commuter Operations) and 705 (Airline Operations) operators who use AOMs in place of AFMs in the baseline scenario associated with the inclusion of approved noise certification data. Given this requirement will come into force on the first anniversary of the day on which the Regulations are published in the Canada Gazette, Part II, these costs are estimated to take place in the second year of the analysis.

For each air operator, it is assumed that one AOM will need to be updated for each unique aircraft model in the fleet. Drawing from the Canadian Civil Aircraft Register and applying the assumptions provided above and those in the “Baseline and regulatory scenarios” section, there will need to be updates to 245 unique AOMs, covering 1 453 total aircraft,footnote 4 across the roughly 75 air operators impacted by these provisions. It is assumed that an operator will need 30 total minutes of an operations manager’s time, at an hourly wage of $76.71 (including 25% overhead). These 30 minutes will include 25 minutes to update each unique AOM and 5 minutes to submit the updated AOM to TC. This one-time update is estimated to result in costs of $8,782 in total across air operators. While some individual copies of the AOMs will likely be updated electronically, to avoid the underestimation of these costs, an additional 5 minutes of an operations manager’s time per aircraft is assumed for the updates. The updates to the individual copies across all air operators are estimated to result in an additional cost of $8,681. Therefore, the total cost to air operators associated with updating AOMs is expected to be $17,463, or an average of $233 per impacted air operator.

TC will incur minor costs associated with reviewing and approving the revisions to these AOMs. It is expected that each AOM would require 20 minutes for a civil aviation safety inspector (CAI-03) at an hourly wage of $92.27 (including 30% overhead) to review and approve. The total cost to the Government of Canada for reviewing and approving AOMs is expected to be $6,972.

Extended diversion time operations terminology
Updating guidance materials

TC will incur opportunity costs associated with updating guidance materials in the time between the publication of the Regulations in the Canada Gazette, Part II, and the coming into force of the EDTO requirements one year later. Over this timeframe, TC will need to update two manuals. The estimated level of effort for these activities is laid out in Table 2. The total cost of these activities is estimated to be $54,857 over the analytical timeframe.

Table 2: Effort to update guidance materials related to EDTOfootnote 5
Job classification Hours of work Hourly rate including 30% overhead
CAI-03 487.5 $92.27
TI-6 37.5 $65.89
PM-3 37.5 $51.70
TR-3 75 $72.89
Updating FAOCs

TC does not anticipate that this slight language change will increase its overall effort when renewing a FAOC. Given this, the impact of FAOC renewals on TC is expected to be negligible.

Crew member interference levels

As a result of the Regulations, Canadian air operators will need to update their COMs and FAMs. Based on internal regional data and TC inspectors’ knowledge, the total individual manuals requiring an update will be roughly 10 002 COMs and 17 645 FAMs. For COMs, each flight crew member is issued one and an additional copy is often available on board the aircraft. The FAM is issued to each flight attendant.

Within an air operator’s fleet and staff, the manuals are the same and only require a single update to a source version of the manual. Given this, there will need to be updates to one source COM and one source FAM for each of the 36 air operators. The updates will then need to be disseminated to all individual copies of these manuals. For operators using individual paper manuals, this minor change will likely be made initially in the form of a bulletin, likely a single page, then incorporated as part of a larger amendment later. For operators using individual digital manuals, this minor change will likely be made in the form of an electronic update pushed to the device.

It is estimated that each air operator will need three hours of specialist time (including five minutes to submit to TC), at an hourly wage of $76.71 (including 25% overhead), to make the necessary updates to each of the two source manuals, with an additional average of $5 per individual manual to update. For individual paper copies, this cost may be slightly higher, whereas for electronic copies the cost will be negligible. To reflect the one-year implementation period for these requirements, the effort is assumed to take place in 2026. The total cost of these updates to manuals will therefore be $144,677. This translates into an average cost of $4,019 per impacted air operator.

TC will incur minor costs associated with reviewing and approving the revisions to these COMs and FAMs. TC will need to review and approve the source manuals; therefore, one COM and one FAM, for each air operator. It is expected that each COM will require 20 minutes for a civil aviation safety inspector (CAI-03) at an hourly wage of $92.27 (including 30% overhead) to review and approve. The FAMs are also expected to require 20 minutes of effort and will be reviewed and approved by a civil aviation safety inspector (TI-06) at an hourly wage, including 30% overhead of $65.89. The total cost to the Government of Canada of reviewing and approving COMs and FAMs is expected to be $1,756.

Read back of safety information and instructions
Costs to air operators

The Regulations related to the read back of safety information and instructions will not increase the overall operational costs for air operators, as the very minor effort will not affect total piloting time during flights and is not expected to displace any other tasks; however, the estimated time required has been quantified for the purpose of the analysis.

The data available regarding flights in Canada is by movement, which is defined as either a departure or an arrival. On average, it is expected that each movement will see the number of read backs listed in Table 3. These read backs per movement estimates are then multiplied by the total forecasted movements over the analytical timeframe.

Table 3: Average read backs expected per movement and time per read back, on average
Information Average read backs per movement Time per read back
Hold-short instructions 0.5 2.5 seconds
ATIS identifier 1 2.5 seconds
Transponder codes 0.5 2.5 seconds
Altimeter settings 1.5 2.5 seconds
Runways-in-use 1 2.5 seconds

Using historical data originating from NAV CANADA, there will be roughly 4 million movements in the first year of the analysis that will be in scope for the new read back requirements. These movements are forecasted across the analytical timeframe with a 1% annual growth rate, which represents the average growth rate in the same historical data. Based on the same data, it is expected that 52% of those movements will operate under Instrument Flight Rules (IFR), 36% under Visual Flight Rules (VFR), and 12% under Runway 88. Applying the assumptions regarding baseline read backs provided in the “Baseline and regulatory scenarios” section, as well as the read backs per flight, time per read back and the coverage of PDC, which reduces the need for transponder code read backs,footnote 6 it is estimated that between 2 200 to 2 500 additional hours will be spent annually on read backs.

Costs to NAV CANADA

TC has consistently consulted with NAV CANADA regarding these read backs and any potential costs they may incur as a result. NAV CANADA expects to incur administrative costs of roughly $50,000 associated with amending the Manual of Air Traffic Services (MATS), issuing Aeronautical Information Circulars (AICs), and any briefings necessary.

Air traffic flow management

It is expected that NAV CANADA will need to provide initial information regarding their ATFM procedures upon the publication of the Regulations in the Canada Gazette, Part II. This is expected to require one day of effort for a traffic manager. Additionally, NAV CANADA will need to provide data to TC upon request. It is expected that there may be 1 to 2 (analysis assumes 1.5) additional requests per month, with each requiring an estimated 30 minutes of traffic manager time. It is estimated that a traffic manager has an hourly wage of $105.50 (including 25% overhead). In total, including both the initial information and the recurring requests from TC, it is expected that NAV CANADA will incur a total cost of $7,925.

TC will also incur incremental costs associated with the review and analysis of the initial information and the requested information. It is expected that TC will spend half a day (3.75 hours) reviewing the initial information, and 30 minutes reviewing the information NAV CANADA provides on request. This work will be done by a technical inspector with an hourly wage of $65.89 (including 30% overhead). In total, it is expected that TC will incur a total cost of $4,704.

Benefits

Foreign medical examiners

Prohibiting foreign medical examiners without Canadian credentialling from submitting MERs will result in minor efficiency benefits for TC. In addition to these efficiency benefits, the Regulations will provide TC with more robust quality control and quality assurance on the medical examinations for all Canadian licensed pilots.

Crew member interference levels

While the risk of a foreign government scrambling military aircraft is low in the baseline, the over classification of “the display or use of a weapon” sets up the circumstances for the scrambling to take place should the confusion not be quickly clarified between the aircraft crew and responding authority. The Regulations will ensure that this classification is aligned, resulting in potential avoided costs related to ensuring military aircraft are not scrambled for foreign stakeholders, primarily the government of the United States. While these avoided costs for foreign governments are not in the scope of this analysis, the Government of Canada will realize reputational benefits as a result of implementing the Regulations.

Read back of safety information and instructions

It is expected that the read back of safety-critical information and instructions will ensure that these important details are accurately received and operationalized. This certainty that pilots and air traffic controllers have the same safety-critical information will avoid ambiguity for both parties, contributing to the overall safety of Canada’s aviation system.

Cost-benefit statement
Table 4: Monetized costs
Impacted stakeholder Description of cost 2025 2026 2034 Total (present value) Annualized value
Air operators Carriage of aircraft radio licence $5,594 $0 $0 $5,594 $744
Updating AOMs $0 $17,463 $0 $17,463 $2,324
Updating COMs and FAMs $0 $144,677 $0 $144,677 $19,251
Total to air operators $5,594 $162,141 $0 $167,734 $22,319
NAV CANADA Administrative tasks associated with read backs $50,000 $0 $0 $50,000 $6,653
ATFM reporting $1,740 $887 $516 $7,925 $1,055
Total to NAV CANADA $51,740 $887 $516 $57,925 $7,708
Transport Canada Reviewing and approving AOM revisions $0 $6,972 $0 $6,972 $928
Updating EDTO guidance materials $54,857 $0 $0 $54,857 $7,299
Reviewing and approving COMs and FAMs $0 $1,756 $0 $1,756 $234
Reviewing NAV CANADA information $840 $554 $323 $4,704 $626
Total to Transport Canada $55,697 $9,282 $323 $68,288 $9,087
All stakeholders Total costs $113,031 $172,310 $839 $293,948 $39,114
Qualitative impacts
Qualitative benefits
Qualitative costs

Small business lens

Analysis under the small business lens concluded that small businesses will be impacted by the Regulations due to the requirement for aircraft operators to carry radio station licences. While financial information and employee counts are not available, TC estimated that 231 of the 875 stakeholders impacted by these requirements would be considered small businesses. The total monetized cost to small businesses is estimated to be $1,477, or an average of $6.39 per business. Given the minimal effort to comply with this requirement, no flexibilities were considered for affected small businesses.

While the available data does not allow for exact certainty on the share of flights that are operated by small businesses, using Statistics Canada’s itinerant movements, by type of operationfootnote 7 and civil aviation operating statisticsfootnote 8 databases, categorized by classification of air carrier levels,footnote 9 it was roughly estimated that 30% of flights that would be impacted by the read back requirements are operated by small businesses. Therefore, it is estimated that between 660 to 750 additional hours will be spent annually by small businesses on read backs. Assuming that all Subparts 702 (Aerial Work) and 703 (Air Taxi Operations) operators are small businesses, there are approximately 602 unique small businesses that will be impacted by these requirements.footnote 3 As noted in the “Costs” section, the read backs will not increase the overall operational costs for air operators, as the very minor effort will not affect piloting time during flights and is not expected to displace any other tasks. Given that these requirements (i) formalize activities already well understood and/or commonly practised by pilots; (ii) will not impose any new or additional operating or capital costs for operators; and (iii) are needed to ensure that safety critical information is communicated in a predictable and consistent manner between ATS and air operators, no flexibilities were considered for small businesses.

One-for-one rule

The one-for-one rule applies, since there will be an incremental increase in administrative burden on businesses. The Regulations are considered a burden “in” under the rule, and no regulatory titles will be repealed or introduced. In total, the Regulations will result in an annualized administrative cost of $998.

As per the Red Tape Reduction Regulations (SOR/2015-202), the assessment of administrative impacts was conducted for a period of ten years commencing from registration of the Regulations. All values listed in this section are presented in 2012 dollars, discounted to the base year of 2012 at a discount rate of 7%.

Using data and assumptions presented above, it is estimated that

Regulatory cooperation and alignment

The Regulations have been developed to comply with the Chicago Convention and the associated SARPs maintained by ICAO. All signatories are mandated to comply with the Convention and promulgate and update their national legislation and guidelines in alignment with the SARPs adopted by ICAO.

Implementing the Regulations will improve Canada’s alignment with other ICAO member states, reducing sources of confusion and unintended cross-border non-compliance. For example, an operator may be fully compliant with the Canadian requirements, but the operator might not be aware of how those requirements differ from foreign requirements, potentially resulting in unintended non-compliance while in the foreign state. However, aligning with international standards will help eliminate that awareness gap.

The Regulations will enhance international recognition of Canada’s civil aviation industry and facilitate smoother international collaborations and partnerships fostering growth in the sector.

Here are some examples of how these Regulations will improve Canada’s alignment with partner jurisdictions:

Effects on the environment

In accordance with the Cabinet Directive on Strategic Environmental and Economic Assessment (SEEA Directive), a preliminary scan concluded that a strategic environmental and economic assessment is not required.

Gender-based analysis plus

A gender-based analysis plus (GBA+) assessment was conducted to determine if the Regulations had differential impacts on the basis of identity factors such as gender, race, ethnicity, sexuality, etc. The assessment identified that this initiative primarily targets the aviation industry, which is approximately 94.87% male globally, per February 2024 data from ICAO’s Regional Personnel By Gender Analysis Tableau. Based on TC internal licensing data, approximately 87% of all new Canadian pilot licences issued in 2024 were to men. Nonetheless, based on the GBA+ assessment, the Regulations are not expected to result in different impacts based on gender, race, ethnicity or sexuality for members of the Canadian aviation industry. Members of the aviation industry, including foreign pilots and aviation students, are expected to benefit from improved harmonization with international standards, which helps reduce awareness gaps between jurisdictions and lessens other barriers caused by discrepancies in rules. The general public will also benefit from improved safety oversight.

The assessment identified a potential short-term negative impact for newcomers to Canada (primarily foreign aviation students). This is because access to viable medical examiners in foreign States may be diminished as a result of the new requirement that foreign medical examiners will need to be designated by TC as CAMEs. Currently, foreign aviation students or pilots looking to acquire their medical certification may proactively seek to complete their medical examination outside of Canada. Under the Regulations, they will no longer be able to do this with any foreign physician that is not a designated CAME. Based on TC internal licensing data for 2024, approximately 30% of pilot licences issued by TC were to non-Canadians, highlighting that newcomers make up a significant portion of the Canadian aviation industry. However, it is anticipated that only a small portion of newcomers rely on foreign physicians for their medical examinations. These impacts are further expected to be mitigated by the work TC has been conducting over the last year to provide CAME credentials to foreign physicians in high-demand areas.

Implementation, compliance and enforcement, and service standards

Implementation

The Regulations have a staggered coming into force period whereby some provisions come into force on the day on which they are published in the Canada Gazette, Part II, such as carriage of the aircraft radio station licence, while the remaining provisions will come into force, as outlined below.

The amendments requiring the read back of safety information and instructions will come into force on the first anniversary of the day on which the Regulations are published in the Canada Gazette, Part II, to ensure that NAV CANADA has sufficient time to update their material. Similarly, the amendments requiring updates to the AOM and the change to levels of interference with a crew member will have a one-year implementation period to ensure that aircraft operators have time to update their manuals.

The transition from ETOPS to EDTO will also come into force on the first anniversary of the day on which the Regulations are published in the Canada Gazette, Part II, to ensure that all supporting material can be modified to capture the new EDTO terminology and requirements.

The new ATFM requirements will come into force on the day on which the Regulations are published in the Canada Gazette, Part II. The associated ATFM standard will specify that the record-keeping requirements related to TMIs for airports other than the four major ones (Toronto, Vancouver, MontrĂ©al and Calgary international airports) will come into force on January 1, 2028. This will align with the implementation of the process NAV CANADA has been developing to standardize across the country the collection and presentation of data related to events or situations that lead to the implementation of TMIs.

Stakeholders will be notified of the Regulations and of the coming into force dates of the various provisions through the CARAC process once the Regulations are published in the Canada Gazette, Part II.

Compliance and enforcement

Verifying compliance with the new ATFM requirements will be done through regular risk-based oversight practices. Oversight would consist of verifying location-specific records from NAV CANADA consisting of ATFM procedures, records of training and proficiency of personnel performing ATFM tasks, the records of annual assessment of staffing, instances of TMIs and access to the publicly available capacity data. Oversight will not be done at set intervals; rather, the records will only need to be provided to an inspector upon request.

TC will continue to enforce compliance with the CARs through the assessment of AMPs for contravention of designated provisions under sections 7.6 to 8.2 of the Aeronautics Act, which carries a maximum fine of $5,000 for individuals and $25,000 for corporations; or through suspension or cancellation of a Canadian aviation document pursuant to sections 6.9, 7 or 7.1 of the Aeronautics Act, or as applicable, proceeding by way of summary conviction, pursuant to section 7.3 of the Aeronautics Act.

The Regulations introduce the newly designated provision (requiring the carriage of the aircraft radio station licence if it has been issued), which would carry a maximum fine of $1,000 for individuals and $5,000 for corporations.

Contact

Steve Palisek
Acting Director
Regulatory Affairs
Civil Aviation
Safety and Security Group
Transport Canada
Place de Ville, Tower C
330 Sparks Street
Ottawa, Ontario
K1A 0N5
Telephone: 613‑993‑7284
Toll-free:1‑800‑305‑2059
Email: TC.CARConsultations-RACConsultations.TC@tc.gc.ca