Decision No. 148-A-2013

Cathay Pacific Airways Limited (Cathay Pacific) has applied to the Canadian Transportation Agency (Agency) for extra‑bilateral authority to permit it to exercise fifth freedom traffic rights between Winnipeg, Manitoba, Canada and Kitakyūshū, Japan, on a scheduled international all-cargo flight between Winnipeg and Hong Kong, to transport live horses between Canada and Japan on April 15, 2013.

Cathy Pacific is licensed to operate a scheduled international service in accordance with the Agreement between the Government of Canada and the Government of Hong Kong concerning Air Services signed on June 24, 1988 (Agreement).

Under the terms of the Agreement, there is no provision for the exercise of fifth freedom traffic rights for all-cargo services between points in Canada and points in Japan.

Air Canada also carrying on business as Air Canada rouge, the designated Canadian airline to serve Hong Kong, did not object to the application.

The Agency may, pursuant to subsection 78(2) of the Canada Transportation Act (CTA), vary the terms and conditions of a licence on a temporary basis for international air services which are not permitted in an agreement.

The Agency has considered the application and the material in support and finds that it is appropriate to grant this authority.

Accordingly, the Agency, pursuant to subsection 78(2) of the CTA, varies Condition No. 2 of Cathay Pacific’s licence to the extent necessary to permit it to exercise fifth freedom traffic rights between Winnipeg and Kitakyūshū on a scheduled international all-cargo flight between Winnipeg and Hong Kong, to transport live horses between Canada and Japan on April 15, 2013.

In all other respects, the service shall be operated in accordance with the Agreement.