Order No. 1990-A-716

December 11, 1990

File Nos. M4895-C14-1-29
M4895-C269-1

WHEREAS by letter dated November 26, 1990, China Airlines Ltd. has applied to the National Transportation Agency for the authority set out in the title;

AND WHEREAS by letter dated December 4, 1990 the Minister of Transport pursuant to paragraph 86(1)(e) of the National Transportation Act, 1987, R.S.C., 1985, c. 28 (3rd Supp.) (hereinafter the NTA, 1987) directed the Agency with the approval of the Governor in Council to issue all the necessary authorizations, by exemption or otherwise so as to allow a Taiwan carrier and Canadian Airlines International Ltd. carrying on business under the firm name and style of either Canadian Airlines International or Canadi*n (hereinafter Canadian Airlines International) to operate scheduled international air services between Canada and Taiwan pursuant to a commercial agreement between the two air carriers, subject to certain terms and conditions;

* The Company's symbol appears between the "i" and the "n" in the trade name.

AND WHEREAS the Agency has taken note of the fact that China Airlines Ltd. is not eligible under subsection 89(2) of the Act to hold a scheduled international licence and that it will not use its own equipment to provide the service between Taipei, Taiwan and Vancouver, British Columbia, Canada;

AND WHEREAS the Agency is of the opinion, subject to compliance by China Airlines Ltd. with the terms and conditions stated below, that adherence by China Airlines Ltd. with the requirements of paragraph 87(a) of the NTA, 1987 and paragraphs 18(a) and 18(c) of the Air Transportation Regulations, SOR/88-58 would be unnecessary, undesirable or impractical.

NOW THEREFORE, IT IS ORDERED THAT:

1. China Airlines Ltd. is hereby exempted, pursuant to paragraph 70(1)(c) of the NTA, 1987, from the requirement of paragraph 87(a) of the NTA, 1987 to hold a scheduled international licence in respect of the service to be provided under the block space arrangement of the commercial agreement with Canadian Airlines International.
2. While operating the service authorized herein, China Airlines Ltd. shall comply with the provisions of the NTA, 1987 and the Air Transportation Regulations, except paragraphs 18(a) and 18(c) of the Air Transportation Regulations for the purpose of implementing the portion of the approved commercial agreement allowing China Airlines Ltd. to provide service on the route Vancouver/ Taipei and beyond Taipei to Hong Kong by means of space blocked on aircraft operated by Canadian Airlines International.
3. The authority granted by this Order shall be contingent upon China Airlines Ltd. and Canadian Airlines International concluding and maintaining a commercial agreement as approved by the Agency.
4. The scheduled international air service authorized herein shall be limited to and shall be operated in accordance with the provisions of the commercial agreement as approved by the Agency.
5. China Airlines Ltd. shall apply its own tariffs in respect of its allotted capacity, as if each flight were to be operated with its own aircraft.
6. The tariffs to be charged for the carriage of passengers and cargo by China Airlines Ltd. shall be subject to the approval or acceptance of the regulatory authorities.
7. China Airlines Ltd. shall, in respect of its allotted capacity, issue tickets for flights carried out by Canadian Airlines International, in the name of China Airlines Ltd.
8. In respect of all services operated pursuant to the blocked space arrangement, the General Schedules filed by China Airlines Ltd. with the Agency and all forms of public advertising (including, but not limited to, published timetables, all electronic displays and advertising by its agents) shall identify clearly that Canadian Airlines International will be operating the aircraft and shall ensure that the aircraft type and arrival/departure times of services provided by China Airlines Ltd. are identical to those contained in General Schedules filed by Canadian Airlines International with the Agency.
9. The authority granted herein shall terminate on May 31, 1991. Any request for extension or amendment to this authority shall be submitted to the regulatory authorities for approval at least thirty (30) days in advance of the effective date of such extension or amendment.
10. China Airlines Ltd. while operating the service authorized herein shall comply with all applicable laws and regulations governing the entry into or departure from Canada's flight information region of aircraft engaged in international commercial air services, or to the operation and navigation of such aircraft within Canada's flight information region.