Decision No. 111-A-2005

March 2, 2005

File No. M4210/A74-4-38

Air Canada has applied to the Canadian Transportation Agency (hereinafter the Agency) for a licence to operate the services set out in the title. The application was received on February 10, 2005.

Under Licence No. 990050, Air Canada is authorized to operate a scheduled international service, medium aircraft and a scheduled international service, large aircraft, in a manner consistent with the Supplementary Confidential Memorandum on Air Services between the Canadian Trade Office in Taipei and the Civil Aeronautics Administration of the Ministry of Transportation and Communications in Taipei signed on February 25, 1999, as amended.

Condition No. 2 of Licence No. 990050 states:

The authority granted herein shall terminate on March 28, 2005.

The Agency has reviewed and considered the application, and the material in support thereof, and is satisfied that Air Canada meets the requirements of subsection 69(1) of the Canada Transportation Act (hereinafter the CTA).

Concerning the duration of the subject authority, the Agency considers it appropriate to grant the authority until March 31, 2006.

Accordingly, pursuant to subsection 71(1) of the CTA, the Agency hereby amends Condition No. 2 of Licence No. 990050 to read:

The authority granted herein shall terminate on March 31, 2006.

A new document of licence bearing Licence No. 990050 will be issued to Air Canada.

Any similar requests for a subsequent authority shall be submitted to the Agency for approval by no later than February 28, 2006.

Should the applicant intend to sell, cause to be sold or publicly offer for sale in Canada a scheduled international service for transportation authorized by this licence to be provided beyond the termination date as set out in Condition No. 2 of the licence, it must file an application for and be granted an exemption from section 59 of the CTA by the Agency.