Can this 'charter idea' be legal here in Canada

[LE8]

Can we here in Canada perform the same type of charter service or the laws different down south?

PHOTOGRAPHS CLOCKWISE From Top: Surf Air; JumpSeat; Linear Air; JetSuite; Arrows.
Despite vast improvements in technology and a growing global demand for flights, air travel over the last few decades only seems to have become more miserable. All too often flying today means enduring never-ending security lines, intrusive body checks or x-ray machines, cramped seats, long layovers, missed connections, delays, and cancellations. And we haven't even touched upon the dingy, outdated seat fabrics, asinine luggage policies, or measly snacks.


And yet for a small and growing percentage of people, flying is actually improving. Cushy seats, quasi-gourmet snacks, and a brief respite from the crushing masses are available on any of 39,000 private aircraft worldwide, and in the U.S., several private jet companies are now offering flights at prices that equal first- and business-class tickets on commercial airlines.

While Linear Air has been around since 2004 and JetSuite launched SuiteDeals in April 2011, there are three new companies less than six months old: JumpSeat took flight in February, Surf Air in June, and FlyArrow is planning to start flights next month.

Whether for business or pleasure, now's the time to check out your new and improved options—before everyone else catches on.

Name of company: JetSuite
Flies to: Nationwide (i.e. Sacramento to Salem or Aspen to Atlanta)
Costs: Prices range from $499 to $1,499 for one leg on a four-seat Phenom 100 or a six-seat JetSuite Editions Citation CJ3s. Per person that could be as low as $124.75 per person for a one-way flight.
How it works: Each day, JetSuite's SuiteDeals posts empty legs of private jets that anyone can book on its website, Facebook, and Twitter pages. Register, login, select your desired SuiteDeal and departure time, and if there's a match, you will be routed to the booking page. Enter your credit card info and book online. A JetSuite Guest Services representative will reach out via email with confirmation and details.
Perks: Free wi-fi, pets fly for free, guaranteed price-quote online (includes taxes, fees, etc.).
Back Story: Founder Alex Wilcox co-founded JetBlue and worked at Southwest Airlines.


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Name of company: Surf Air
Flies to: San Francisco, LA, and Santa Barbara, with more cities throughout California and the U.S. coming soon.
Costs: Unlimited flights (or "all-you-can-fly") for $1,650 a month, with a one-time initiation fee of $500.
How it works: Book your flights online or on your smartphone up to 6 weeks or as soon as three minutes in advance. But unlike a charter, you won't get to choose the schedule.
Perks: Unlimited free guest passes if you book two weeks in advance. Bring up to 35 pounds of luggage for free. Snacks on board reflect the demographic (health-conscious, unique, and gourmet) and include néktér juices, Burst Foods, popchips, and Paso Almonds.
Back Story: Founded by brothers Wade and Dave Eyerly. Wade worked as an intelligence officer with the Department of Defense, served in Iraq, and received the Secretary of Defense's medal. Jared Leto is an early investor.


• • •


Name of company: JumpSeat
Flies to: Nationwide—from Dallas to Detroit, Chicago to Palm Beach—and some international trips. Flight opportunities change constantly.
Costs: A recent flight from Bedford to Nantucket for four people cost $2,500; and from Westchester County Airport (outside New York) to John Wayne Airport (LA) for $1,995 per person on a G450 Gulfstream.
How it works: A peer-to-peer sharing service lets fliers snap up empty seats on a jet already scheduled to fly at a bargain. The owner calls it "the private jet version of Airbnb."
Perks: Refer friends and get $500 in JumpSeat credits.
Back Story: According to the owner, a Hollywood star's dog recently needed to fly from BUR to TED, but couldn't go commercially due to its size. The dog and the star's assistant flew private on a Hawker 1000 and three JumpSeaters joined the flight for $5,000, or $1,667 each—less than a commercial first-class ticket.


• • •


Name of company: Linear Air
Flies to: Hubs around Boston, New York City, Washington DC, Atlanta, Dallas Forth Worth, and Gainesville.
Costs: Prices vary. A flight for three people from New York to Boston same day, roundtrip would cost around $1,700 per person.
How it works: Use the online "Price Your Flight" tool and select departure and destination address (the nearest airport choices to and from your current location and final destination will be ranked in order) number of passengers, and type of stay (same day, one way, or round trip). An itinerary guide will indicate how trip costs vary based on different airports, length of stays, and aircraft.
Perks: Once you have a quote for a trip, book it immediately or return later to book within seven days. If you choose Eclipse 500, aka the sports car of the private-jet world, be sure to visit the men's room before takeoff—no bathrooms on board!
Back Story: After enduring exasperating delays and no direct travel options for a business trip in the summer of 2004, Louisville, KY-native William Herp decided to democratize private air travel by making it more affordable and accessible. After selling his online marketing start-up, e-Dialog, to Ebay, he founded Linear Air.


• • •


Name of company: Arrow
Flies to: Seattle and Bay Area airports
Costs: $499 each way Seattle-San Jose and $299 each way San Jose–Burbank.
How it works: Pay an individual membership fee of $200/month (individuals) or $500/month (corporate) and then per ride. Once it launches, there will be a published schedule that members can select from, and you will be able to book a charter flight or ticket via text message.
Perks: Free in-flight wi-fi. Free Anheuser-Busch products.
Back Story: Arrow's fleet consists of Piaggio P 180 Avanti II aircraft, a company owned by Ferrari. The largest operator of the Avanti is the Italian Air Force. Founded by aviation enthusiast Russell Belden and backed by Seattle entrepreneur Andy Liu, the company only plans to launch service after attracting 200 members in a Kickstarter-esque approach. Stay tuned…


• • •

[LE8]

I guess it must be illegal as no one has anything to add, oh well.

I guess the only way for a small charter company to sell tickets on their airplane is to create a subsidiary travel agency whether it's online or a physical location and they sell tickets which places then the passengers on the charter airline which I assume airlines like Air Transat own the travel agency.

Pardon my ongoing long sentence, sheesh!

LE8

[digits_]

What exactly is it that makes you doubt this is legal ? I see a lot of text but have no idea what you are talking about.

[Bede]

Looks like you cut and pasted something out of a business plan. Perhaps being more concise would get more replies.

Anyways, to answer your questions, yes it's totally legal in Canada. You will need a 703 operating certificate if you use a prop, or a 704 operating certificate if you're using a jet. Yes you can sell scheduled tickets.

[AOW]

Look at it from a customer's perspective... If you chartered an airplane to take you and some of your employees somewhere, you don't expect to have other random passengers on the flight. Imagine flying to Vegas for a business meeting, only to find you are sharing your "private" jet with some guys trying to recreate "The Hangover"!!

[oldtimer]

I am going back many years ago so things may have changed but IMHO this would be the problem. Bede mentioned 703/704 but that is the rules a commercial air carrier has to operate under which is not a factor in what is proposed. In this case, I believe it is an entirly different body of regulators that will have something to say. They used to be called the Canadian Transport Commision. They issue basically the business license and TC issues the 703,704 or 705 Operating Certificate. This is the way I see it. Charter means a person or company hires the whole airplane and pays a mileage charge for every mile the airplane flies. Airlines operate under a system of unit toll, whereby a person basically rents a seat to wherever the airplane is going and we call that an airline as opposed to air taxi. It should be able to be done, just need the proper blessing from two of our Great White Fathers who resides in two different buildings. Canadia Transport Commision then TC. I think.

[YYCAME]

It seems like an interesting idea. It seems to be piggy backing off the car share commuting ideas in the US right now. So as I understand it you get a pile of people that just input their desired route and date via a website or app and then if there is sufficient demand at the right price point the charter company picks up the flight and notifies the potential customers that their bid has been accepted and with the details of their flight. Sort of a way to get a charter flight with a bunch of random strangers going the same way as the same time.

The downside is that you need sufficient momentum or you won't have enough people going the same direction at the same time to make it worthwhile. So you could try it on a busy route like Calgary/Edmonton and probably make a go of it but then why not just operate a small scale sched at peak hours for those that prefer a different flying experience rather then complicate your operation by allowing customers to dictate the departure times.

But I can see the value if you just need to fly to some remote northern place on a particular day and want to share the cost with others who might also want to share a charter. I guess that is where the real value for this would be now that I think about it. A way to link up potential customers who wouldn't be able to afford a private charter.

[goldeneagle]

A lot of these setups are just selling seats on what would otherwise be backhaul or positioning flights. Works like this. Jet is based in point A. Rockstar calls up, and books the plane to go from point B to C on such and such day. Rockstar pays the bill, which is written up as a to b to c in mileage. Now company has the aircraft flying empty for the pickup from point a to b, then empty again from point c to home after dropping off rockstar. They list these legs on the discount flights websites, put some bums in the empty seats, and scoop up a little cash in the process.

There are two ways to make money with an airplane. First, and most reliable, is puch the holding time clock while it's parked on the ground. Second, is sell your backhauls, preferably for full tarriff rates.

[BKerns]

I would always feel you have to be careful if you want to double dip when selling a charter. Since the round trip is payed for if for some reason they change their plan and want to use the back haul flight/change departure times etc.

[AOW]

A lot of these setups are just selling seats on what would otherwise be backhaul or positioning flights. Works like this. Jet is based in point A. Rockstar calls up, and books the plane to go from point B to C on such and such day. Rockstar pays the bill, which is written up as a to b to c in mileage. Now company has the aircraft flying empty for the pickup from point a to b, then empty again from point c to home after dropping off rockstar. They list these legs on the discount flights websites, put some bums in the empty seats, and scoop up a little cash in the process.

There are two ways to make money with an airplane. First, and most reliable, is puch the holding time clock while it's parked on the ground. Second, is sell your backhauls, preferably for full tarriff rates.

That makes a lot more sense. But I still don't think that the Canadian market is large enough to make this work. Too few airplanes on too few empty legs, between too few airports.

[LE8]

A lot of these setups are just selling seats on what would otherwise be backhaul or positioning flights. Works like this. Jet is based in point A. Rockstar calls up, and books the plane to go from point B to C on such and such day. Rockstar pays the bill, which is written up as a to b to c in mileage. Now company has the aircraft flying empty for the pickup from point a to b, then empty again from point c to home after dropping off rockstar. They list these legs on the discount flights websites, put some bums in the empty seats, and scoop up a little cash in the process.

There are two ways to make money with an airplane. First, and most reliable, is puch the holding time clock while it's parked on the ground. Second, is sell your backhauls, preferably for full tarriff rates.

That makes a lot more sense. But I still don't think that the Canadian market is large enough to make this work. Too few airplanes on too few empty legs, between too few airports.

what about this scenario which I think works for companies like Air Transat and Canjet on a much larger scale of course, ABC air charter service wants to fly to an airport to operate an air taxi service using small 9 passenger aircraft as a scheduled charter but ABC air charter can't sell directly to the public tickets. Am I right on that, I think I am. The way around that is to form a sister company or subsidiary company called ALL ABOARD TRAVEL for example which is owned by ABC air charter under that umbrella. Then the public go on the site of ABC air charter and I would think somewhere in the site you have ALL ABOARD TRAVEL where they go on to sell individual tickets to the public on a scheduled charter which you guessed it would be operated by ABC air charter. Can this happen for a small air service company or am I wrong. I know this is legal down in the U.S. but I am just trying to confirm with the aviation community if this is legit.

I already posted the question to TC and still waiting for a response, so if anyone has anything to add please do. Thank you

LE8