Decision No. 126-A-2007

March 16, 2007

File No. M4212/C506-4

China Airlines Limited carrying on business as China Airlines (hereinafter China Airlines) has applied to the Canadian Transportation Agency (hereinafter the Agency) for a licence to operate the service set out in the title. The application was received on February 13, 2007.

Under Licence No. 000042, China Airlines is authorized to operate a scheduled international service, 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 (hereinafter the CMOU).

Condition No. 3 of Licence No. 000042 states:

The authority granted herein shall terminate on March 31, 2007.

By Order No. 2006-A-632 dated November 28, 2006, the Agency, pursuant to paragraph 80(1)(c) of the Canada Transportation Act (hereinafter the CTA), exempted China Airlines from the application of section 59 of the CTA, thereby permitting the air carrier to sell, cause to be sold or publicly offer for sale in Canada a scheduled international service between Taipei and Canada, for travel beyond March 31, 2007, without holding the required licence, subject to certain conditions.

The Agency has reviewed and considered the application and material in support thereof and is satisfied that China Airlines meets the requirements of subsection 69(1) of the CTA.

Concerning the duration of the subject authority, the Agency considers it appropriate to grant the authority until March 31, 2008.

Accordingly, pursuant to subsection 71(1) of the CTA, the Agency hereby amends Condition No. 3 of Licence No. 000042 to read:

The authority granted herein shall terminate on March 31, 2008.

A new document of licence bearing Licence No. 000042 will be issued to China Airlines Limited carrying on business as China Airlines.

Any similar requests for a subsequent authority shall be submitted to the Agency for approval by no later than February 28, 2008.

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. 3 of the licence, it must file an application for and be granted an exemption from section 59 of the CTA by the Agency.

Members

• Raymon J. Kaduck
• Baljinder Gill