37. Penalties

Subject to paragraphs (2) and (3), where the Authority is of the opinion that an AOC holder is contravening or has contravened —

any condition of the air operator certificate; or

any provision in Part 2 other than a provision in regulations 4, 5, 6 and 7, the Authority may direct the AOC holder to pay a financial penalty not exceeding the higher of the following:

$500,000;

5% of the AOC holder’s annual revenue derived from the regulated activity.

Before exercising any power under paragraph (1), the Authority must give written notice to the AOC holder concerned —

stating that the Authority intends to impose on the AOC holder a financial penalty under this regulation;

specifying each instance of non‑compliance that is the subject of the financial penalty; and

specifying the time (being not less than 14 days after the service of notice on the AOC holder) within which written representations may be made to the Authority with respect to the non‑compliance that is the subject of the financial penalty.

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.

Where the Authority has made any decision under paragraph (3) against any AOC holder, the Authority must serve on the AOC holder concerned a notice of its decision.

To avoid doubt, this regulation does not affect the operation of section 17, 18 or 19 of the Act.

In this regulation —

“annual revenue” means the amount of money received by an AOC holder in the calendar year during which the AOC holder contravened —

a condition of the air operator certificate; or (b)a provision in Part 2 (not being a provision in regulation 4, 5, 6 or 7);