No. S 476
Air Navigation Act
(Chapter 6)
Air Navigation (Licensing of Air Services) (Amendment) Regulations 2003
In exercise of the powers conferred by section 16 of the Air Navigation Act, the Minister for Transport hereby makes the following Regulations:
Citation and commencement
1.  These Regulations may be cited as the Air Navigation (Licensing of Air Services) (Amendment) Regulations 2003 and shall come into operation on 3rd October 2003.
Amendment of regulation 1
2.  Regulation 1 of the Air Navigation (Licensing of Air Services) Regulations (Rg 2) (referred to in these Regulations as the principal Regulations) is amended by deleting paragraph (2).
Amendment of regulation 2
3.  Regulation 2 of the principal Regulations is amended —
(a)by deleting the definition of “air service” and substituting the following definitions:
“ “air service” means any service comprising the carriage of passengers, mail or cargo for hire or reward by means of an aircraft;
“air services agreement” means an agreement or arrangement entered into between the Government and the government of another country under which the provision of air services is permitted;”;
(b)by inserting, immediately after the definition of “chief executive officer”, the following definitions:
“ “Committee” means the Air Traffic Rights Committee established under regulation 2D;
“country” includes a territory;”; and
(c)by deleting the definitions of “licence” and “licensee” and substituting the following definition:
“ “non-scheduled journey” means a journey that is not scheduled;”.
New regulation 2A and Part IA
4.  The principal Regulations are amended by inserting, immediately after regulation 2, the following regulation and Part:
No air service to be provided without licence
2A.—(1)  Subject to these Regulations, no person shall provide any air services upon any scheduled journey between 2 or more places of which at least one is in Singapore, except under and in accordance with a licence granted under Part IA or II.
(2)  Any person who contravenes paragraph (1) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $5,000 or to imprisonment for a term not exceeding 3 months or to both and, in the case of a second or subsequent offence, to a fine not exceeding $50,000 or to imprisonment for a term not exceeding 2 years, or to both.
(3)  This regulation shall not apply to —
(a)any person who provides any air services under and in accordance with any air services agreement as an airline designated, nominated or otherwise authorised by the government of another country under that air services agreement;
(b)the airline of any country which is a party to the Agreement where its aircraft merely flies across Singapore without landing, or where its aircraft lands in Singapore, in accordance with the provisions of that Agreement.
PART IA
LICENCES FOR SCHEDULED JOURNEYS UNDER AIR SERVICES AGREEMENT
Definitions of this Part
2B.—(1)  In this Part —
“air operator certificate” means an air operator certificate granted under paragraph 87 of the Air Navigation Order (O 2);
“air traffic right” means the right of an airline designated, nominated or otherwise authorised by the Government to provide air services on scheduled journeys from, to or over a country under an air services agreement, and includes the city to be served, the route on which the air services are to be provided, the type of traffic to be carried and the capacity to be provided;
“available air traffic right” means any air traffic right other than an air traffic right in respect of which a licence is in force;
“Chairman” means the Chairman of the Committee;
“licence” means a licence granted under this Part;
“licensee” means a person who holds a licence.
(2)  A reference in this Part to the suspension of a licence by the Committee includes a reference to the suspension by the Committee of the right to exercise one or more air traffic rights conferred by the licence.
(3)  A reference in this Part to the revocation of a licence by the Committee includes a reference to the revocation by the Committee of the right to exercise one or more air traffic rights conferred by the licence.
(4)  A reference in this Part to the variation of a licence by the Committee includes a reference to the variation of one or more air traffic rights that may be exercised by a licensee under the licence.
Application of this Part
2C.  This Part shall apply only to the provision of air services on scheduled journeys under and in accordance with an air services agreement.
Air Traffic Rights Committee
2D.—(1)  For the purposes of allocating air traffic rights under this Part, there shall be established a Committee comprising a Chairman and not less than 3 other members, which shall be known as the Air Traffic Rights Committee.
(2)  The Chairman and every other member of the Committee shall be appointed by the Minister for a period not exceeding 2 years and each shall be eligible for re-appointment.
(3)  The Minister may at any time revoke the appointment of the Chairman or any other member of the Committee for any reason and may appoint any person to fill any vacancy which may arise in the Committee.
(4)  The Chairman or any other member of the Committee may at any time resign from his office by notice in writing to the Minister.
(5)  Subject to the provisions of this Part, the Committee may regulate its own procedure.
(6)  The Authority shall provide administrative and secretarial support to the Committee in the performance of its functions.
Functions of Committee
2E.  The functions of the Committee are —
(a)to consider any application for the grant or renewal of a licence to provide air services which are the subject of any available air traffic rights, and to grant or renew such licence on such terms and conditions as the Committee may determine or to refuse to grant or renew such licence; and
(b)to review any such licence, and to affirm, suspend, revoke or vary such licence pursuant to the review.
Application for grant or renewal of licence
2F.—(1)  An application for the grant or renewal of a licence to provide air services which are the subject of any available air traffic rights shall be made to the Committee.
(2)  The application shall be made in such form and manner as the Committee may determine and shall, unless the Committee specifies otherwise —
(a)if the applicant is a body corporate, contain such information of the persons who hold ownership of the applicant, and of the persons who control the applicant, as the Committee may require;
(b)contain such information of the applicant’s financial resources as the Committee may require; and
(c)state —
(i)the cities to be served;
(ii)the routes on which the air services are to be provided;
(iii)the aircraft types and configurations to be used;
(iv)the frequency, capacity and time table of the air services to be provided;
(v)the types of traffic to be carried;
(vi)the tariffs to be charged and conditions of tariffs;
(vii)the expected load factors of passenger and cargo carriage;
(viii)the expected load factors of passenger and cargo carriage that must be achieved in order to avoid any financial loss in providing the air services concerned;
(ix)the proposed date on which the provision of air services is to commence;
(x)the nature of the air services to be provided, including any joint services, code-sharing and other arrangements to be entered into with one or more airlines with respect to the air services to be provided;
(xi)the benefits that would ensue to the public if a licence is granted to the applicant or is renewed;
(xii)the extent to which tourism can be promoted if a licence is granted to the applicant or is renewed;
(xiii)the extent to which international trade can be promoted if a licence is granted to the applicant or is renewed;
(xiv)the extent to which Singapore can be promoted as an air hub if a licence is granted to the applicant or is renewed; and
(xv)any other benefits that would accrue to Singapore if a licence is granted to the applicant or is renewed.
(3)  The application shall be accompanied by a copy of the air operator certificate held by the applicant.
(4)  Unless otherwise allowed by the Committee, the application shall —
(a)if it is an application for the grant of a licence, be made not less than 6 months before the date on which the applicant proposes to commence the provision of air services; and
(b)if it is an application for the renewal of a licence, be made not less than 6 months before the date of expiry of the licence.
(5)  The Committee may require an applicant to furnish such other documents and information as the Committee thinks fit and the applicant shall comply with such requirement.
(6)  The Committee may reject an application without further consideration if the applicant does not comply with paragraph (2), (3), (4) or (5).
Matters to be considered by Committee
2G.—(1)  The Committee may take into account the following matters when considering an application for the grant or renewal of a licence:
(a)the nationality of the applicant or, if the applicant is a body corporate, the place of its incorporation and the nationalities of the persons whom the Committee considers hold substantial ownership and effective control of the applicant;
(b)the financial resources of the applicant and his ability to maintain adequate, satisfactory, safe and efficient air services;
(c)whether the applicant is the holder of an air operator certificate;
(d)the applicant’s proposals for providing air services in terms of —
(i)the cities to be served;
(ii)the routes on which the air services are to be provided;
(iii)the aircraft types and configurations to be used;
(iv)the frequency, capacity and time-table of the air services to be provided;
(v)the types of traffic to be carried;
(vi)the tariffs to be charged and conditions of tariffs;
(vii)the expected load factors of passenger and cargo carriage;
(viii)the expected load factors of passenger and cargo carriage that must be achieved in order to avoid any financial loss in providing the air services concerned;
(ix)the date on which the provision of air services is to commence and the ability of the applicant to enter the air services market quickly;
(x)the nature of the air services to be provided, including any joint services, code-sharing and other arrangements to be entered into with one or more airlines with respect to the air services to be provided;
(xi)the applicant’s business strategy (including the tariffs to be charged and conditions of tariffs, the proposed range and quality of services to be provided and the applicant’s explanation as to how the applicant intends to meet the commitments contained in his proposals); and
(xii)the international civil aviation requirements relating to operational and safety standards;
(e)the provision of air services by other airlines along the routes in respect of which the application is made;
(f)the demand for air services along the routes in respect of which the application is made;
(g)the applicant’s past performance in respect of any air services provided by him prior to the application;
(h)the extent to which tourism can be promoted if a licence is granted to the applicant or if his licence is renewed;
(i)the extent to which international trade can be promoted if a licence is granted to the applicant or if his licence is renewed;
(j)the extent to which Singapore can be promoted as an air hub if a licence is granted to the applicant or if his licence is renewed;
(k)the benefits that would ensue to the public if a licence is granted to the applicant or if his licence is renewed (including the availability of effective, efficient, economical and safe air services);
(l)the extent to which good relations and co-operation (particularly in respect of the provision of air services) with foreign governments can be fostered if a licence is granted to the applicant or if his licence is renewed;
(m)any other benefits that would accrue to Singapore if a licence is granted to the applicant or if his licence is renewed.
(2)  In addition to the matters referred to in paragraph (1), the Committee may also take into account any other matter which it considers relevant.
Grant or renewal of licence
2H.—(1)  When an application is made to the Committee for the grant or renewal of a licence under this Part, the Committee may, subject to this Part —
(a)grant or renew the licence subject to such terms and conditions as it may determine; or
(b)refuse to grant or renew the licence.
(2)  Without prejudice to any other ground on which a Committee may refuse to grant or renew a licence, the Committee may, in particular, refuse to grant or renew a licence —
(a)if the applicant is not a citizen of Singapore or a company incorporated in Singapore which the Committee considers to be substantially owned and effectively controlled by the Government or citizens of Singapore or both;
(b)if the applicant does not hold an air operator certificate;
(c)if the Committee is not satisfied that the applicant has sufficient financial resources to provide the air services in respect of which the application is made; or
(d)if the grant or renewal of the licence would result in a contravention of the air services agreement in relation to which the application is made.
Period and form of licence
2I.—(1)  A licence shall be valid for such period not exceeding 5 years as the Committee may determine and may be renewed for a period not exceeding 5 years upon any one renewal.
(2)  A licence shall be in such form as the Committee may determine.
Fees and charges
2J.—(1)  A licensee shall, for the duration of his licence, pay to the Authority on such date and in such manner as the Committee may determine an annual fee of $2,000 for each city in respect of which air services are provided under his licence.
(2)  Where there is in force an international agreement to which Singapore is a party pursuant to which any fees or charges are payable to the government of another country or any international organisation that are (whether directly or indirectly) connected with, incidental to or arising from the flight of an aircraft of a licensee over any territory or region as specified in the agreement, such fees and charges shall be borne by the licensee.
(3)  Where the Government is required under the terms of the international agreement to pay any fees or charges referred to in paragraph (2), the Government may recover the amount of any payment to be borne by the licensee from the licensee, and the licensee shall reimburse the Government for that amount.
(4)  Without prejudice to the Committee’s power to impose any other terms or conditions under regulation 2H(1)(a), the obligations imposed on a licensee under paragraphs (1) to (3) shall form part of the conditions of his licence.
Licensee not exempted from other laws
2K.  The grant of a licence to a person does not exempt him from complying with the requirements of any law relating to air navigation or air transport.
Review of licence
2L.—(1)  The Committee may review any licence granted under this Part —
(a)at any time on its own motion if the Committee believes that there are grounds for suspending, revoking or varying the licence; or
(b)upon the written application of the licensee to vary the licence.
(2)  The Committee may, having completed a review under paragraph (1) —
(a)suspend the licence for such period as the Committee thinks fit;
(b)revoke the licence;
(c)affirm the licence; or
(d)vary the licence.
Suspension, revocation, etc., of licence
2M.—(1)  The Committee may suspend, revoke or vary a licence on its own motion if —
(a)the licensee is no longer —
(i)a citizen of Singapore; or
(ii)a company incorporated in Singapore which the Committee considers to be substantially owned and effectively controlled by the Government or citizens of Singapore, or both;
(b)the licensee no longer holds an air operator certificate;
(c)the licensee or, in the case of a body corporate, any of its officers is convicted of an offence under the Act or these Regulations or any other written law relating to air navigation or air transport;
(d)the licensee contravenes or ceases to satisfy any provision or requirement of these Regulations or any term or condition of the licence;
(e)due to a change in circumstances, it is inevitable that the licensee will contravene or cease to satisfy any provision or requirement of these Regulations or any term or condition of the licence;
(f)the licensee fails to provide the air services that the licensee was licensed to provide within 6 months of the date of commencement of the licence or for any continuous period of 6 months or more after the date of commencement of the licence;
(g)the continued holding of the licence by the licensee, or the holding of the licence on the terms or conditions subject to which it was granted, would result in a contravention of the air services agreement in relation to which the licence was granted;
(h)the licensee had in his application for the grant, renewal, transfer or assignment of a licence furnished any information which is false or misleading; or
(i)it is in the interest of the public to suspend or revoke the licence or vary any term or condition of the licence.
(2)  In addition to the grounds specified in paragraph (1), the Minister may direct the Committee to revoke, suspend or vary any licence if it appears to the Minister that the continued holding of the licence by the licensee, or the holding of the licence on the terms or conditions subject to which it was granted, is or is likely to be detrimental to the interests of Singapore, and the Committee shall comply with such direction.
Notice of suspension, revocation, etc., of licence
2N.  If the Committee proposes to suspend, revoke or vary any licence on its own motion, it shall —
(a)serve on the licensee not less than 7 working days before the date on which the suspension, revocation or variation is to take effect —
(i)informing the licensee of the proposed suspension, revocation or variation; and
(ii)stating the ground on which the licence is to be suspended, revoked or varied; and
(b)consider such written representations as the licensee may have made to the Committee before the expiration of the notice.
Application for variation of terms and conditions of licence
2O.—(1)  A licensee may at any time apply to the Committee to vary a licence.
(2)  The application shall —
(a)be in writing and be in such form as the Committee may specify;
(b)specify the variation being requested; and
(c)contain such documents or information as the Committee may require.
Surrender of licence
2P.—(1)  A licensee may at any time surrender his licence to the Committee for cancellation.
(2)  If a licensee applies to the Committee for a new licence in substitution of the current licence, he shall, if a new licence is granted to him, surrender the current licence for cancellation on or before the date from which the new licence is to take effect.
Appeals to Minister
2Q.—(1)  Any person who is aggrieved by a decision of the Committee —
(a)to refuse to grant or renew a licence;
(b)to suspend or revoke a licence; or
(c)to vary or refuse to vary a licence,
may, within 14 working days of receipt of a notification of such a decision, appeal to the Minister.
(2)  Every appeal to the Minister shall —
(a)be in writing;
(b)state the decision of the Committee in respect of which the appeal is sought; and
(c)specify the grounds on which the appeal is made.
(3)  The Minister may require the applicant to furnish such documents or information as the Minister considers necessary to enable him to make a determination on the appeal.
(4)  The appeal shall be considered and disposed of in such manner as the Minister thinks fit and the decision of the Minister shall be final.
Delegation of power in respect of temporary variations and excess air traffic rights
2R.—(1)  The Committee may, subject to such conditions as it thinks fit, delegate, in writing, to any person the power of the Committee to vary, upon the application of a licensee, the licence in respect of —
(a)the cities to be served;
(b)the routes on which the air services are to be provided;
(c)the frequency and capacity of services to be provided; and
(d)the types of traffic to be carried.
(2)  The Committee shall not under paragraph (1) empower any delegate (other than the Chairman) to allow one or more variations which are effective for an aggregate duration of more than 6 months.
(3)  The Committee may, subject to such conditions as it thinks fit, delegate, in writing, to the Chairman the power to grant or renew a licence to provide air services which are the subject of any available air traffic rights for which one or more applications for a licence are made where there are sufficient air traffic rights.
(4)  For the purposes of this Part, the exercise of the power of a delegate to vary a licence under paragraph (1) or to grant or renew a licence under paragraph (3) shall be deemed to be the exercise of such power by the Committee.
(5)  For the purpose of this regulation, there are sufficient air traffic rights if the air traffic rights in respect of which one or more applications are made can be allocated to all the applicants without depriving any applicant of any of the air traffic rights in respect of which he has made his application.
Transitional
2S.—(1)  Notwithstanding any provision in this Part, where a person has been providing scheduled air services in respect of any air traffic rights immediately before 3rd October 2003, the Minister shall, upon application by the person, grant to the person a licence to provide the air services in respect of the air traffic rights that the person has been exercising at any time from 1st January 2003 to 3rd October 2003 (both dates inclusive).
(2)  An application made under paragraph (1) shall be made in such form and manner as the Minister may determine.
(3)  A licence granted under paragraph (1) shall be valid for a period of 10 years and shall be subject to such terms and conditions as the Minister may determine.
(4)  A licence granted under paragraph (1) may be renewed by the Committee subject to such terms and conditions as the Committee may determine.
(5)  The provisions of this Part, other than regulation 2I(1), shall apply to a licence granted under paragraph (1) as if the licence were granted by the Committee.
Reduction, waiver or refund of fees
2T.  The Minister may in any particular case reduce, waive or refund any fee payable under this Part.”.
Deletion and substitution of heading of Part II and regulations 3 and 4
5.  The principal Regulations are amended by deleting the heading of Part II and regulations 3 and 4 and substituting the following heading and regulations:
Licences for Scheduled Journeys Other Than under Air Services Agreement
Definitions for this Part
3.  In this Part —
“licence” means a licence granted under this Part;
“licensee” means a person who holds a licence.
Application of this Part
4.  This Part shall not apply to the provision of air services on scheduled journeys which is under and in accordance with an air services agreement.”.
Amendment of regulation 5
6.  Regulation 5 of the principal Regulations is amended by deleting paragraphs (1) and (2) and substituting the following paragraphs:
(1)  An application for the grant of a licence to provide any air services that are not the subject of any available air traffic rights within the meaning of Part IA shall be made to the Minister.
(2)  The Minister may grant a licence on such terms and conditions as he may determine, or refuse to grant the licence.”.
Deletion and substitution of regulation 13
7.  Regulation 13 of the principal Regulations is deleted and the following regulation substituted therefor:
Application of this Part
13.  This Part shall apply only to the provision of air services on non-scheduled journeys.”.
Amendment of regulation 14
8.  Regulation 14 of the principal Regulations is amended by deleting paragraph (1) and substituting the following paragraph:
(1)  Subject to these Regulations, no person shall provide any air services on any non-scheduled journey between 2 or more places of which at least one is in Singapore, except under and in accordance with a permit granted by the chief executive officer.”.
Amendment of regulation 15
9.  Regulation 15 of the principal Regulations is amended by deleting paragraph (1) and substituting the following paragraph:
(1)  Where an application is made for a permit, the chief executive officer may grant a permit to provide air services on such journeys as may be specified in the permit and subject to such conditions as he may impose, or refuse to grant a permit.”.
Deletion and substitution of regulation 19 and new regulations 19A and 19B
10.  Regulation 19 is deleted and the following regulations substituted therefor:
No assignment, etc., of benefits of licence or permit
19.—(1)  Subject to the provisions of this regulation, the holder of a licence granted under Part IA or II (referred to in this regulation as a licence) or of a permit shall not —
(a)assign, transfer or otherwise dispose of any of the benefits of his licence or permit; or
(b)permit another person to participate in any of the benefits, or exercise any of the powers or authority granted under the licence or permit.
(2)  The holder of a licence or permit who wishes to transfer or assign his licence to another person shall apply to the relevant authority for approval to do so.
(3)  Where the holder of a licence —
(a)dies;
(b)in the case of a company, winds up or goes into liquidation or is otherwise dissolved; or
(c)ceases to provide any air services in respect of which his licence or permit is granted for any other reason,
any person who wishes to carry on the holder’s business of providing the air services shall apply to the relevant authority for the transfer of the licence to him.
(4)  The relevant authority may, upon the receipt of an application under paragraph (3), grant provisional approval to the person making the application to commence the provision of the air services until his application is approved or rejected; and that person shall not, when providing those air services at any time until his application is approved or rejected, be treated to be in contravention of regulation 2A.
(5)  The relevant authority may, on receipt of an application under paragraph (2) or (3), approve the transfer or assignment of the licence or permit on such terms and conditions as it thinks fit if it is satisfied that —
(a)such transfer or assignment would not involve or result in any disruption of the air services provided by the holder of the licence or permit prior to the proposed transfer or assignment; and
(b)the proposed transferee or assignee is willing and able to substantially comply with the terms and conditions of the licence or permit.
(6)  An application for the transfer or assignment of a licence or permit shall be —
(a)made in such form and manner; and
(b)accompanied by such documents and information,
as the relevant authority may require.
(7)  Nothing in this regulation shall be construed as imposing an obligation on the relevant authority to approve the transfer or assignment of a licence or permit in any case.
(8)  In this regulation, “relevant authority” means —
(a)in the case of a licence under Part IA, the Committee;
(b)in the case of a licence under Part II, the Minister; or
(c)in the case of a permit, the chief executive officer.
Penalty
19A.  Any person who, for the purpose of obtaining for himself or another person —
(a)a licence under Part IA or II or a permit; or
(b)the renewal, variation, transfer or assignment of a licence under Part IA or II or a permit,
knowingly or recklessly furnishes the Committee, the Minister or the chief executive officer (as the case may be) with any information which is false or misleading in a material particular, shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $5,000 or to imprisonment for a term not exceeding 3 months or to both and, in the case of a second or subsequent offence, to a fine not exceeding $50,000 or to imprisonment for a term not exceeding 2 years or to both.
Fees not refundable
19B.  Subject to regulation 2T, the fees payable under these Regulations shall not be refundable.”.

Made this 3rd day of October 2003.

PETER ONG
Permanent Secretary,
Ministry of Transport,
Singapore.
[MOT.CA.31.8.005.0.0; AT/ASA/P1.3.1 (Poli); AG/LEG/SL/6/2003/1 Vol. 2]