What is an AOC?
AOC is a certificate provided by the Directorate General of Civil Aviation (the “DGCA”) to real and/or legal persons to allow them conducting commercial air transportation activities. This certificate proves that the entities which own an AOC, has fulfilled all requirements regulated under the relevant legislation.
During the preparation of this article, below mentioned regulations, which are required for the operators that conduct commercial air transportation (passenger/cargo) activities, have been evaluated:
• Turkish Civil Aviation Law numbered 2920
• Regulation on Commercial Air Carriage Operators (SHY-6A) (“SHY-6A”)
• Regulation on Aircraft Pilot License (SHY-1)
• Regulation on Continuous Airworthiness and Maintenance Obligation (SHY-M)
• Regulation on Third Party Financial Liability Insurance which is required for Turkish and Foreigner Civil Aircrafts that Flies within the Airspace of Turkey
• Directive on the Procedures and Principles of Aircraft Leasing
Shareholder structure, shareholders, minimum financial requirements, aircrafts numbers and qualifications of the managing and technical personnel of the entities that will conduct commercial air transportation and application steps of the certificate are regulated under SHY-6A.
General Requirements In Order to Obtain AOC
- Operators which only engage in cargo transportation activities shall be formed as a joint stock company.
- Subject of the airline companies regulated under its articles of association shall only include aviation related matters.
- Headquarter of the operator shall be within the territories of the Republic of Turkey, at least 51% of the total shares of the operator is required to be “registered share certificates”, majority of the shares, members of the board and voting rights and control shall belong to Turkish citizens or legal companies.
- Majority of the share of the operator shall not be owned by foreign entities and authority to represent and bind shall not mainly belong to foreign entities.
- Real and legal person founders and shareholders of the operator and the real person shareholders who have an indirect share of the operator and the managers authorized to represent and bind the operator shall not be convicted of the crimes under the Article 18 of the Law numbered 2920; there shall not be any definite bankruptcy or concordat decision taken by the Court during its commercial air transportation activities.
- Capital required to be paid shall be paid from equity capital and shall be paid before the prior authorization.
- Operators and their shareholders shall not have any tax debt or Social Security Institution premium debt to the government as a result of their commercial activities.
- The operator shall have financial strength to finance the company and shall be able to increase its capital at any time under the Regulation on Commercial Air Carriage Operators (SHY-6A) when necessary.
Before the separation of the air transportation activities, the operators which obtained prior authorization for commercial air transportation activities or which own operator certificate, are obliged to apply to the DGCA in order to obtain permission if it is necessary to receive permission from the Competition Board through receiving the permission of the Competition Board- if it is not necessary-with the documents asked during the prior authorization step along with the one year business plan.
For the establishment of flight safety and security, the commercial air transportation operators are obliged to:
a) Provide a sufficient number of flight, technical and administrative personnel in accordance with the nature and scope of the operation to be performed and make entries of these personnel on behalf of the company within the Social Security Institution records,
b) Provide trainings to these personnel. Provide training and controls regarding the minimum requirements to the personnel employed and ensure their minimum qualifications,
c) Keep the aircraft suitable for flight by fulfilling the maintenance and airworthiness requirements of the minimum number of aircraft that shall be in its fleet in accordance with the scope of its certificate,
d) Perform the operations to be carried out in accordance with the minimum requirements of national and international civil aviation legislation.
In the event that there is an agreement between the company and another operation or maintenance organization, the technicians are not obliged to be employed by the commercial air transportation company.
For the authorization by DGCA of the operators which will carry out commercial air transportation with the scheduled and non-scheduled flights on domestic and/or international flights;
a) The companies which will operate with aircrafts with a seat capacity of one hundred or more in their fleet;
1) Shall have or lease at least five aircrafts registered under their title within the Turkish Civil Aircraft Registry.
2) Shall have at least fifteen million USD paid capital. This capital is sufficient for maximum fifteen aircrafts. The company shall own or lease at least one million USD paid capital per each aircraft registered in its fleet, if the number of the aircrafts registered in its fleet are more than fifteen aircrafts.
3) If the company meets the number of aircraft that shall be in its fleet and fulfills the paid capital conditions, it may have aircrafts with less seat capacity or may only have cargo aircrafts in its fleet. For this aircraft or these aircrafts, paid capital is additionally required through taking into account the seat and cargo capacities regulated under this Regulation.
b) The companies which will operate with aircrafts with a seat capacity of minimum twenty or maximum ninety nine in their fleet;
1) Shall have or lease at least two aircrafts registered under their title within the Turkish Civil Aircraft Registry.
2) Shall fulfill the conditions required for the companies regulated under the Subparagraph (a) or under the Article 16, if they request to operate with aircrafts with a seat capacity of one hundred or more in their fleet.
3) Shall have at least five million USD paid capital. This capital is sufficient for maximum ten aircrafts. The company shall own or lease at least five hundred thousand USD paid capital per each aircraft registered in its fleet, if the number of the aircrafts registered in its fleet are more than ten aircrafts.
4) If the companies meet the number of aircraft that shall be in their fleet and fulfill the paid capital conditions, they may have aircrafts with less seat capacity or may only have cargo aircrafts in their fleet. For this aircraft or these aircrafts, paid capital is additionally required through taking into account the seat and cargo capacities regulated under this Regulation.
For the authorization by DGCA of the operators which will carry out commercial air transportation with only non-scheduled flights on domestic and/or international flights;
a) The companies shall have or lease at least three aircrafts with a seat capacity of one hundred or more in their fleet registered under their title within the Turkish Civil Aircraft Registry.
b) The companies shall have at least ten million USD paid capital. This capital is sufficient for maximum ten aircrafts. The company shall own or lease at least one million USD paid capital per each aircraft registered in its fleet, if the number of the aircrafts registered in its fleet are more than ten aircrafts.
c) If the companies meet the number of aircraft that shall be in their fleet and fulfill the paid capital conditions, they may have aircrafts with less seat capacity or may only have cargo aircrafts in their fleet. For these aircrafts, paid capital is additionally required through taking into account the seat and cargo capacities regulated under this Regulation.
d) The operator which requests to start its flight activities by registering its two aircrafts in the Turkish Civil Aircraft Registry, shall be granted a one-year operator certificate, provided that it pays the operator certificate fee at the rates published by the General Directorate with 50% more. The difference in tariff received shall not be returned to the operator for any reason.
In this case, the operator shall register its other aircraft to the Turkish Civil Aviation Registry within one year at the latest. In the event that the third aircraft is able to be registered to the Turkish Civil Aircraft Registry within one year, the operator certificate of the operator shall be suspended and the operator shall be given a period of 3 months. In the event that the third aircraft is not registered to the Turkish Civil Aircraft Registry within this period, the operator certificate shall be cancelled.
e) The companies shall fulfill the conditions required for the operators which will carry out commercial air transportation with scheduled and non-scheduled flights on domestic and/or international flights and shall prepare a feasibility report in accordance with their requests, if they request to conduct transportation activities with scheduled flights. If these conditions are fulfilled, the operator certificate shall be changed accordingly.
For the authorization of the operators which will carry out commercial air transportation activities with aircrafts which only operate in cargo transportation in their fleet with scheduled and non-scheduled flights on domestic and/or international flights;
a) The companies shall have or lease at least two aircrafts which only operate in cargo transportation in their fleet registered under their title within the Turkish Civil Aircraft Registry.
b) The companies shall have at least five million USD paid capital. This capital is sufficient for maximum ten aircrafts. The company shall own or lease at least five hundred thousand USD paid capital per each aircraft registered in its fleet, if the number of the aircrafts registered in its fleet are more than ten aircrafts.
c) The companies which only conduct cargo transportation activities shall not have passenger aircrafts in their fleet.
d) The companies shall fulfill the conditions required for the types of companies regulated under the Articles 15, 16 and 18 and shall prepare a feasibility report in accordance with their requests, if they request to conduct commercial passenger transportation activities.
Documents indicating that the company, which has requested the operator certificate, has the financial power to meet fixed and operational management expenses such as at least three-month aircraft rental, fuel, personnel, maintenance, insurance, ground services, airports and Eurocontrol, without considering the revenues from its flights after obtaining the operator certificate and that it is able to make capital increase, shall be submitted to DGCA at the prior authorization step.
Noise levels in the aircrafts to be registered on behalf of the operator shall comply with the noise limits regulated under Annex-16, Volume 1, Chapter 3 or 4 of the International Civil Aviation Treaty. In addition, the relevant aircrafts shall have a certificate of type which is issued in accordance with the Annex-8 of the International Civil Aviation Treaty and approved by DGCA.
The operator shall submit to DGCA the documents indicating that it has the financial power to meet the existing and possible liabilities that will occur within 24 months from the start date of operations.
The reference letter shall be submitted to DGCA at the prior authorization step. The relevant reference letter shall show the credibility of the company requested the operator certificate or its senior shareholder and shall be obtained from at least two banks in Turkey or foreign banks with correspondent banks in Turkey.