Financial penalties
112.—(1)  Subject to paragraphs (2) and (3), where the Authority is of the opinion that a person (Z) is contravening, or has contravened, any provision in Part 2 that is not a criminal offence, the Authority may direct Z to pay financial penalty not exceeding the higher of —
(a)$500,000; or
(b)5% of Z’s annual revenue derived from the regulated activity.
(2)  Before exercising any power under paragraph (1), the Authority must give written notice to Z —
(a)stating that the Authority intends to impose on Z a financial penalty under this regulation;
(b)specifying each instance of non‑compliance that is the subject of the financial penalty; and
(c)specifying the time (being not less than 14 days after the service of notice on Z) within which written representations may be made to the Authority with respect to the non‑compliance that is the subject of the financial penalty.
(3)  The Authority may, after considering any written representations under paragraph (2)(c), decide to impose such financial penalty under paragraph (1) as the Authority considers appropriate.
(4)  Where the Authority has made any decision under paragraph (3) against Z, the Authority must serve on Z a notice of its decision.
(5)  To avoid doubt, this regulation does not affect the operation of section 4C, 4D or 4E of the Act.
(6)  In this regulation —
“annual revenue” means the amount of money received by Z in the calendar year during which Z contravened a provision in Part 2 that is not a criminal offence;
“regulated activity” means the flights or operations conducted by Z under these Regulations.