Some people who have posted comments here do not understand the issue or have not read the original post entirely. I know its long. So for these people here is the short version.
I will number my arguments for clarity. The CARs are in quotes.
1)
Pilot Qualifications
705.106 (1) Subject to subsection (3), no air operator shall permit a person to act and no person shall act as the pilot-in-command, second-in-command or cruise relief pilot of an aircraft unless the person
(a) holds the licence, ratings and endorsements required by Part IV;
To fly as pilots for a 705 operator, you need to have a licence, ratings and endorsements required by Part IV.
2)
Foreign licensed pilots do not hold a license, rating or endorsement required in Part IV. So in effect this clause says that foreign pilots are not allowed to fly for 705 operators.
3.
in 1) above it said that this was subject to subsection (3). Here it is:
(3) An air operator may permit a person to act and a person may act as the pilot-in-command or second-in-command of an aircraft where the person does not meet the requirements of subsection (1), if
(a) the aircraft is operated on a training, ferry or positioning flight; or
(b) the air operator
(i) is authorized to do so in its air operator certificate, and
(ii) complies with the Commercial Air Service Standards.
4)
This subsection allows people not qualified according to Part IV, ie foreign licensed pilots, to fly training flights, ferry flights or positioning flights.
OR
If the operator is so authorized in his operator certificate, the pilots who do not have licenses, ratings and endorsements as required in Part IV can do other things that are written in the standard. So we must move on the the standard to find out what that is.
5)
725.106 Pilot Qualifications
725.106 (6) Use of a Person not Qualified in Accordance with the Canadian Aviation Regulations to Act as Pilot-in-Command or Second-in-Command (refers to subparagraph 705.106(3)(b)(ii) of the Canadian Aviation Regulations)
Authority may be given for other than an air operator employee pilot to occupy a flight crew seat when training, conducting line indoctrination training, and while the first air operator flight crews are completing consolidation and crew pairing minimum flight time requirements on a new aeroplane type.
The pilot shall:
(a) provide a resume, proof of background on the type of aeroplane, and recent experience appropriate to the training to be given; and
(b) hold the appropriate licence, ratings and endorsements. Where the pilot holds a foreign pilot licence, the licence and (as applicable) the instrument rating shall be validated by Transport Canada - Civil Aviation.
The pilot may be authorized to conduct pilot checks provided the requirements of the Company Check Pilot Manual (TP6533) are met with the exception of the minimum employment time with the air operator.
A foreign licensed pilot may be granted authority for training and checking only when a Canadian licensed pilot is not available.
During revenue flights foreign licensed pilots shall not replace Canadian licensed pilots. They can act as qualified pilot in replacement of a training pilot where the training pilot is authorized to occupy the jump seat for the purpose of crew pairing requirements (section 725.108) or transition line indoctrination (subsection 725.124(33)).
6)
And here it says that a pilots not qualified according to Part IV can do line checks (line indoctrination) when a company has introduced a new aircraft type and a Canadian licensed pilot is not available, but in no case shall such a pilot be used for revenue flights (beyond line indoc.)
It further specifies that is such pilots are to be used, they must have a FLVC issued by TC. Now we can go loot at 401.07
7)
401.07 (1) Subject to section 6.71 of the Act, if the holder of a foreign flight crew licence issued by a contracting state other than Canada meets the applicable requirements set out in the personnel licensing standards and does not reside in Canada, the Minister shall, on receipt of an application submitted in the form and manner set out in those standards, issue a foreign licence validation certificate to the holder of the licence.
(2) The Minister shall, in accordance with the personnel licensing standards, specify in a foreign licence validation certificate the privileges that may be exercised by the holder of the certificate.
8 )
It says that if you don't live in Canada that you can have a FLVC on the conditions set by the standard. Let's look at the standard.
9)
(1) Issue of Foreign Licence Validation Certificate
(a) A Foreign Licence Validation Certificate shall be issued to an applicant who provides the following:
(i) a foreign licence valid under the laws of a contracting state and valid for the privileges requested; and
(ii) a letter requesting issue of the Foreign Licence Validation Certificate and specifying the purpose for which the foreign licence is to be validated.
(b) The Foreign Licence Validation Certificate shall normally be issued for a period of one year from the date of issue. A shorter period may be granted upon the applicant’s request.
(c) If the medical validity period of the licence issued by a contracting state other than Canada is longer than the ICAO standard, the validation shall be limited to Canadian airspace.
(2) Purposes For Which Foreign Licence Validation Certificates May Be Issued
(a) for the holder to undergo a flight test;
(b) for private recreational flying;
(c) for ferry of an aircraft registered in Canada to or from a foreign country;
(d) for the holder to give type rating training on an aircraft registered in Canada to the registered owner, or to Canadian flight crew employed by the registered owner;
(e) for the holder to receive training in a Canadian registered aircraft;
(f) for operation of aircraft registered in a foreign state under the operating certificate of a Canadian carrier provided that the privileges are limited to the type of aircraft being operated;
(g) for operation of Canadian aircraft on Canadian commercial air services in urgent circumstances; such as fire suppression operations, emergency agricultural and forestry aerial application, airlift in relief of domestic natural disasters, and search and rescue operations;
(h) for commercial air services operated entirely within a foreign country where pilots holding a licence from that country may have their licence validated for operation of Canadian registered aircraft in that country;
(i) for the operation of aircraft registered in Canada on lease to foreign carriers;
(j) for reasons other than those mentioned above where approval may be given if, in the opinion of the Minister, it is in the public interest and not likely to affect aviation safety.
10)
421.07 (1) (a) (ii) states that a FLVC is issued when the applicant states for what purpose the FLVC is requested. The list of valid purposes is listed in 421.07 (2). Flying the line commercially is not listed.
11)
You will note, on the otehr hand, that all purposes listed in 705.106 and 725.106 (6) are listed in 421.07 (2)
Ferry and positioning flights are authorized by 421.07 (2) (c)
Training flights can be either of 421.07 (2) (a), (d) or (e).
12)
The list is purposely limited in nature. 401.07 is under Part IV and includes all types of flying from recreational to airlines.
13)
421.07(2)(j) provide some latitude to the Minister to authorize the use for purposes not listed here, but a regulation under the General PArt IV can never possibly trump a Restriction written in Prrt VII for airline use. Something that is prohibited specifically in PART VII operations can never be authorized by a Part IV regulation. It's like if
14)
The same prohibitions for foreign licensed pilots exist as well for 703 and 704 operations, Air Taxi and Commuters. They are found in CARs 703.88 and 704.108.
15)
Foreign licensed pilots are not to be allowed as line pilots for any of the above commercial operation in Canada. Ever!
16)
401.03(1) Subject to subsection (2), no person shall act as a flight crew member or exercise the privileges of a flight crew permit, licence or rating unless
(a) the person holds the appropriate permit, licence or rating;
(b) the permit, licence or rating is valid;
(c) the person holds the appropriate medical certificate; and
(d) the person can produce the permit, licence or rating, and the certificate, when exercising those privileges.
(1.1) No person shall exercise the privileges of a foreign licence validation certificate unless the person
(a) holds the appropriate foreign licence validation certificate;
(b) has signed the certificate; and
(c) can produce the certificate when exercising those privileges.
(2) A person who holds a military flight crew permit, licence or rating or a flight crew permit, licence or rating issued by a contracting state other than Canada may act as a flight crew member or exercise the privileges of a flight crew permit, licence or rating for the sole purpose of the person's flight test where
(a) the test is conducted in accordance with section 401.15; and
(b) no passenger other than the person referred to in paragraph 401.15(1)(a) is carried on board the aircraft.
17)
You will notice here that the CAR 401.03 makes distinction between a flight crew permit, licence or rating, which is mentioned in 401.03(1) and the FLVC which is not considered a flight crew permit, licence or rating, but which is listed in CAR 401.03(1.1).