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International Airline Licences - Guidance Notes

See also: International Air Services Information Memorandum

Download a PDF version of the Guidance Notes [PDFPDF: 68 KB]

Introduction
The Application
Company Profile
IASC Determinations (Australian Applicants Only)
Air Operator's Certificate
Insurance
Transport Security Program
Aircraft Noise Standards (Use of Non-Chapter 3 Aircraft)
Additional Information
Timetables and Tariffs
Slot Applications
Border Agency Consultation
Regulatory Requirements for Registration as a Foreign Company
Other Agencies

INTRODUCTION

a. Who needs to apply?

Any airline proposing to operate scheduled international air services over, into or out of Australian territory requires an International Airline Licence (IAL) before it can commence services.

Airlines proposing to market seats to and from Australia under code share arrangements with another airline also require an IAL.

Applications for an IAL must be lodged by the intending operator.

b. Eligibility

Australian airlines seeking to be licensed to operate international air services are required to demonstrate that they can comply with the requirements of the air services agreements between Australia and the countries to which they wish to fly. This is particularly important when dealing with the issues of substantial ownership and effective control by Australian nationals, country of incorporation and principal place of business. In relation to ownership and control requirements, the Government requires Australian international carriers to meet a number of national interest criteria.

Ownership provisions require that:

Foreign shareholdings be limited to no more than 49 per cent of the total value of the issued share capital of the Australian airline.

Control criteria require that:

  • At least two-thirds of the Board members are Australian citizens;
  • The Chairperson of the Board is an Australian citizen;
  • The airline's head office is in Australia; and
  • The airline's operational base is in Australia.

Separate legislative provisions apply to Qantas Airways Ltd.

Foreign airlines applying for an IAL must demonstrate that they meet the requirements of the air services agreement between Australia and their country of incorporation and registration relating to ownership and control, incorporation and principal place of business.

They may also be required to demonstrate that they are qualified to fulfil the conditions prescribed under the laws and regulations normally applied to the operation of international air services by the relevant Australian aeronautical authorities.

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THE APPLICATION

a. General

Applications for International Airline Licences should be forwarded to:

General Manager
Aviation Industry Policy
Aviation & Airports Business Division
Department of Infrastructure, Transport,
Regional Development and Local Government
GPO Box 594
CANBERRA ACT 2601
AUSTRALIA

The pages of an application should be consecutively numbered and paragraphs should be titled and numbered identically with the corresponding items in this guide.

The application should include the information requested below and any further information the applicant considers may clarify aspects of the application.

b. Title

The application should be titled "An Application for an International Airline Licence - by (name of airline)".

c. Timing of Licence Application

The application should be forwarded to the Department of Infrastructure, Transport, Regional Development and Local Government at least sixty (60) days before the date of commencement of the proposed services or other such period as agreed by the Department.

d. Caption

The following caption must be included:

"The undersigned applies for permission pursuant to the Air Navigation Act 1920 and the Air Navigation Regulations to establish a scheduled international public transport service and certifies that the facts stated in the application are true and that the copies of any documents attached to the application are true copies".

e. Address of Applicant

Applicants should provide the names of the heads of the following components of the organisation, together with postal and street addresses, telephone and facsimile numbers and e-mail addresses if available:

i. Head Office
ii. Operating Headquarters
iii. Australian Offices (where applicable for foreign operators)

  • Australian Management
  • Marketing
  • Airport(s)

f. Exhibits and Documents

These should be attached to the original of the application and properly identified with the pertinent portion of the application.

g. Signature

The original of the application shall be signed:

(i) by the applicant, if an individual, who is sole owner; (ii) by each member of a partnership; or (iii) if a registered company or corporation, by an officer or officers of the company or corporation duly authorised to submit such applications on behalf of the company or corporation.

The status of the signatory must be indicated in terms of (i), (ii) or (iii) and copies of appropriate authorisations attached.

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COMPANY PROFILE

a. Evidence of the present corporate existence of the applicant (including relevant Australian and/or foreign company number), the incorporation or business name registration, and copy of any Act, Memorandum and Articles of Association, certificate of incorporation, or other instrument, from which the company or corporation derives its powers and functions, should be supplied. This documentation should be supplied both in relation to the country where the applicant is headquartered and Australia (whichever is applicable).

b. Nationality of Ownership and Control. Proof of the nationality of the interests holding substantial ownership and effective control of the applicant should be supplied.

c. Principal place of business

Evidence showing the applicant's main place of operations.

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IASC DETERMINATIONS (Australian Applicants Only)

Australian applicants for an international airline licence will need to have an allocation of capacity from the International Air Services Commission (IASC) prior to the grant of the licence. The applicant should quote the IASC Determination number. The allocation by the Commission must not be conditional (e.g., on obtaining finance, etc).

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AIR OPERATOR'S CERTIFICATE

Operators of aircraft seeking to operate scheduled international air services will be required to obtain from the Civil Aviation Safety Authority (CASA) an Air Operator's Certificate (AOC). Information regarding applications for AOCs can be obtained from the CASA website at http://www.casa.gov.au/aoc/aoc_app/index.htm, or by writing to:

Civil Aviation Safety Authority
GPO Box 2005
CANBERRA ACT 2601
AUSTRALIA
Fax: (02) 6217 1209

The Department will not be able to finalise an application for an International Airline Licence until a relevant AOC has been approved by CASA.

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INSURANCE

A concise statement shall be furnished of present and/or proposed insurance coverage and limits thereof for:

i. employees resident in Australian territory;
ii. passenger liability;
iii. cargo liability; and
iv. liability to third parties on the ground for injury, death or damage.

Passenger liability insurance

Each carrier who carries passengers for hire or reward to or from Australia, or within Australia, is required to have in place passenger liability insurance which ensures that compensation will be paid in respect of death or personal injury suffered by passengers on the carrier's aircraft.

The Civil Aviation Safety Authority (CASA) is responsible for administering and enforcing the Commonwealth and State compulsory insurance schemes under Part IVA of the Commonwealth Civil Aviation (Carriers' Liability) Act 1959; Civil Aviation (Carriers' Liability) Regulations and complementary State legislation.

Carriers are required to have appropriate insurance and a current Certificate of Compliance from CASA to be able to carry passengers on a commercial flight. The requirement also extends to any cargo carrier who transports persons who are not active flight crew members (eg. cargo handlers, security guards, animal minders, etc.) on a cargo flight. Details of the requirements are available from the:

Carriers' Liability Insurance Unit
CASA
GPO Box 2005
CANBERRA ACT 2601
AUSTRALIA
Telephone: (02) 6217 1131 (international +61-2-6217 1131))
Fax: (02) 6217 1110 (international +61-2-6217 1110)

Third parties on the ground

Under the Damage by Aircraft Act 1999 Australian law provides for strict and unlimited liability for compensating third parties on the ground suffering death, injury or damage from aircraft within the Commonwealth's jurisdiction. It is a commercial decision of the airlines to decide what insurance cover should be held. The Australian Government will assess whether the cover is appropriate for the level of the airline's operations in Australian territory.

War risk insurance

The amount of war risk insurance covering passengers, hull and third party damage on the ground is a commercial matter for the airline. The Australian Government will assess whether the cover is appropriate for the level of the airline's operations in Australian territory.

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TRANSPORT SECURITY PROGRAM

A Transport Security Program, approved by the Office of Transport Security within the Department of Infrastructure, Transport, Regional Development and Local Government in accordance with the Aviation Transport Security Act 2004 and related regulations, must be in place for the proposed services. Applicants should contact the Office of Transport Security for further information by email to AviationSecurityCompliance@infrastructure.gov.au

Information on preparing a Transport Security Program can be found at:http://www.infrastructure.gov.au/transport/security/aviation/operators.aspx

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COMPLIANCE WITH AIRCRAFT NOISE STANDARDS (USE OF NON-CHAPTER 3 AIRCRAFT)

Under the Air Navigation (Aircraft Noise) Regulations 1984, subsonic jet aircraft that do not comply with the standards provided in Chapter 3, Volume I of ICAO Annex 16 ('Chapter 3') must not engage in air navigation in Australia.

The regulations provide limited exceptions for the operation of aircraft that is to be used solely for a purpose in the public interest. In this instance, the operator must lodge an application in writing to the Secretary of the Department of Infrastructure, Transport, Regional Development and Local Government stating the public interest grounds relied on. Application forms may be downloaded: [DOCDOC: 80 KB]

Additional information regarding aircraft noise standards for air navigation in Australian airspace may be found at: http://www.infrastructure.gov.au/aviation/environmental/noise.aspx

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ADDITIONAL INFORMATION

The applicant shall supply such additional information as the Secretary to the Department of Infrastructure, Transport, Regional Development and Local Government may require.

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TARIFFS AND TIMETABLES

Before air services may commence, and in conjunction with the issue of an IAL, applicants are required to separately submit details of proposed timetables in accordance with the provisions of regulation 20 of the Air Navigation Regulations 1947.

Licensees are not required to provide details of proposed tariffs unless the Secretary directs that they be submitted for approval.

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SLOT APPLICATIONS

Applicants should contact Airport Coordination Australia for information on the process of obtaining slots at Australias main international airports. Airport Coordination Australia can be contacted through their website at: http://www.coordaus.com.au.

Slots at airports not controlled by Airport Coordination Australia may be arranged directly with the Airports concerned.

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BORDER AGENCY CONSULTATION

Applicants seeking to commence international air services to Australia should make early contact with Australia's border control agencies to discuss their plans and related Australian Government requirements. Applicants should note that not all international airports have a permanent border agency presence. Contact details for the border agencies are provided below:

Australian Customs Service

Director Passenger Clearance
Australian Customs Service
Customs House
5 Constitution Avenue
CANBERRA ACT 2600

Ph: +61 2 6275 8026
Fax: +61 2 6275 6869

Customs website: http://www.customs.gov.au

Department of Immigration and Citizenship

Ms Carolyn Hourigan
Advance Passenger Processing Director
Department of Immigration and Citizenship
PO Box 25
BELCONNEN ACT 2617

Email: Carolyn.Hourigan@immi.gov.au
Ph: +61 2 6223 8292
Fax: +61 2 6223 8240

DIAC website: http://www.immi.gov.au/

Australian Quarantine and Inspection Service

National Program Manager
Airports
Australian Quarantine & Inspection Service
GPO Box 858
CANBERRA ACT 2601

Ph: +61 2 6272 5105
Fax: +61 2 6272 3468

AQIS website: http://www.aqis.gov.au

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REGULATORY REQUIREMENTS FOR REGISTRATION AS A FOREIGN COMPANY

The Department of Infrastructure, Transport, Regional Development and Local Government does not require foreign airlines be registered as a foreign company in Australia to be issued with an International Airline Licence. However, the Corporations Act 2001, which is administered by the Australian Securities Investment Corporation (ASIC), may require such registration. Compliance with the Corporations Act is a matter for a foreign corporation and ASIC to determine. Applicants are encouraged to contact ASIC for further information, and/or obtain private legal advice in relation to their companys particular proposals. Contact details for ASIC can be found through their website at: http://www.asic.gov.au

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OTHER AGENCIES

For the requirements of other agencies, applicants should refer to Australia's Aeronautical Information Publication (AIP) (published by Airservices Australia), especially the Section dealing with Transit and Departure of Aircraft. The AIP can be accessed at: http://www.airservicesaustralia.com/

AVIATION INDUSTRY POLICY - SEPTEMBER 2008

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Disclaimer: The compatible application(s) listed above are examples only. The Department of Infrastructure, Transport, Regional Development and Local Government does not endorse any particular software developer or specific application.


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Last Updated: 13 November, 2008