Order No. 1995-A-298

July 13, 1995

File No. M4895/E32-4-1

WHEREAS under Licence No. 880540, Empresa Consolidada Cubana de Aviacion (hereinafter the Licensee) is authorized to operate a Class 9-4 Charter non-scheduled international service to transport traffic between points in Cuba and points in Canada using fixed wing aircraft in Groups F, G and H;

AND WHEREAS by Order No. 1990-A-243 dated June 8, 1990, Licence No. 880540 was amended pursuant to subsection 96(1) of the National Transportation Act, 1987, R.S.C., 1985, c. 28 (3rd Supp.) by adding Condition No. 6 which reads:

The Licensee shall not operate a charter flight, other than an entity charter flight, unless it has filed documentary evidence with the Agency showing that all advance payments received from any charterer under charter contract are fully protected, for the benefit of and in the name of each charterer participating in that charter, by one of the following arrangements for securing those advance payments:

1. an agreement of guarantee between the air carrier responsible for the outgoing portion of the charter and a Canadian banking, trust or financial institution whereby the full refund of all or part of the advances made to the air carrier, to which the charterer may be entitled under the contract for unperformed charter transportation, is guaranteed to be paid promptly to the charterer by that institution;
2. a performance bond provided to the air carrier responsible for the outgoing portion of the charter by a Canadian bonding or insurance company under which the company agrees to refund promptly to the charterer, if that air carrier fails to do so, all or part of the advances made to that carrier to which the charterer may be entitled under the contract for unperformed charter transportation; or
3. performance insurance covering the charter price, whereby, if the air carrier responsible for the outgoing portion of the charter fails to perform the charter or any part thereof, the charterer shall be reimbursed to the extent of the entitlement of that charterer under the contract for the unperformed charter transportation.

AND WHEREAS the Licensee was advised that the Agency intended to amend the Air Transportation Regulations, SOR/88-58, with Governor in Council approval, such that scheduled airlines operating international passenger charter flights would no longer be exempted from the requirements to provide advance payment protection for these charter flights;

AND WHEREAS amendments to the Air Transportation Regulations were promulgated on December 3, 1992 requiring all carriers, including scheduled airlines, operating international passenger charter flights to provide advance payment protection;

AND WHEREAS Condition No. 6 of Licence No. 880540 requiring the protection of advance payments has now become redundant as all carriers must now provide advance payment protection in accordance with the Air Transportation Regulations;

AND WHEREAS the Agency has considered the matter and deems it appropriate in the public interest to amend Licence No. 880540.

NOW THEREFORE, IT IS ORDERED THAT:

Licence No. 880540 is hereby amended pursuant to subsection 96(1) of the National Transportation Act, 1987 by deleting Condition No. 6 of Licence No. 880540.

A new document of licence bearing Licence No. 880540 will be issued.