Direct Air Carrier's Surety Bond (Under Part 212, 14 CFR Part 212)

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Bond Penalty: Unlimited

Foreign and direct air carriers operating in United States airways must be properly credentialed by the federal government. Pursuant to Part §212.8 of Title 14, customer's payment must be protected by a financial assurance mechanism and/or segregated accounts with a financial institution. The direct air carrier's surety bond is a convenient method of complying with this Code requirement.

Per subsection (a), "(a) No certificated air carrier or foreign air carrier may perform any charter trip (other than cargo) originating in the United States or any Overseas Military Personnel Charter trip, nor accept an advance payment in connection with any such trip unless there is on file with the Department a surety bond which guarantees the performance of all charter trips in whole or in part by the carrier pursuant to any contracts entered into by the same." The amount of direct air carrier bond must be OPEN PENALTY. The claims are limited to amounts that are paid to the carrier for U.S.-originating passenger charter flights that carrier fails to perform or to refund. The surety bond must be issued by a bonding or surety company which is either listed in AM Best's Insurance Reports rating of A or better or appears on the U.S. Department of Treasury's circular of companies (the "T-List") that are acceptable sureties on federal obligations. An aggrieved party must file with the carrier or with the surety a claim within sixty (60) days after cancellation of a charter trip with respect to which the charterer's advance payments are secured by the direct air carrier's bond, or the claim is barred.

National surety bond leader, Surety One, Inc. is THE most responsive underwriter of federal bonds in the United States. Our expertise in dealing with the Federal Aviation Administration's and its various registries, same day underwriting, immediate bond execution and delivery are unparalleled. We underwrite surety bonds or air operators in all fifty states, Puerto Rico and U.S. Virgin Islands. Call (800) 373-2804, email or click here for a live chat for application materials and assistance with your direct air carrier's surety bond or any other surety need.

Surety bond application review and quoting are free of charge. There is no obligation to purchase.

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Additional Attachments

  • Current Business Financial Statement

Obligee's Bond Form