Order No. 1996-A-495

December 6, 1996

File No. M4820-U5-6

WHEREAS American Trans Air, Inc. (hereinafter the applicant) has applied to the Canadian Transportation Agency (hereinafter the Agency) for authority to operate the service set out in the title. The application was received on July 16, 1996 and was amended on July 29, 1996;

AND WHEREAS under Licence No. 880189, the applicant is authorized to operate a Class 9-4R Restricted Charter non-scheduled international service between Canada and any other country using fixed wing aircraft in Groups G and H;

AND WHEREAS under Licence No. 951102, the applicant is authorized to operate a Class 9-4 Charter non-scheduled international service between Canada and the United States;

AND WHEREAS the applicant currently operates a series of passenger charter flights between various points in the United States and points in the United Kingdom and Ireland, making a technical landing at Gander. The applicant is requesting permission to take onboard cargo (seafood) at Gander for Tie International Cargo Freight Forwarders destined to points in the United States and Ireland, in the unused bellyhold space on aircraft used for passenger charter flights;

AND WHEREAS notice of the application was sent to Air Canada and Canadian Airlines International Ltd. carrying on business under the firm name and style of either Canadian Airlines International or Canadi*n (The Company's symbol appears between the "i" and the "n" in the trade name.) for comments. No comments were received by the Agency;

AND WHEREAS pursuant to the Air Transport Agreement between the Government of Canada and the Government of the United States of America signed February 24, 1995 (hereinafter the Agreement), a U.S. carrier has the right to carry traffic in transit through Canada and to combine in the same aircraft Canadian origin traffic with U.S. origin traffic;

AND WHEREAS the Air Transportation Regulations, SOR/88-58, as amended (hereinafter the ATR), provide for the carriage of cargo in the unused bellyhold space on aircraft used for passenger charter flights, but require that the cargo be carried between the same points of origin and destination as the passengers;

AND WHEREAS the Agency has reviewed the application and, in light of the Agreement, particularly the provisions of Annex III thereof regarding Charter Air Transportation, the absence of direct large aircraft services into and from Gander and the interest of shippers in using available services to export fresh seafood from Gander, the Agency is of the opinion that compliance with paragraphs 23(1)(c) and 81(1)(c) of the ATR is unnecessary.

NOW THEREFORE, IT IS ORDERED THAT:

Pursuant to paragraph 80(1)(c) of the Canada Transportation Act, S.C., 1996, c. 10, American Trans Air, Inc. is hereby exempted from the application of paragraphs 23(1)(c) and 81(1)(c) of the ATR thereby permitting it to transport cargo for Tie International Air Freight Forwarders in unused bellyhold space on aircraft used for the following passenger charter flights:

1. From Gander to Chicago on flights operated between London (Gatwick) and Chicago from August 11 to September 8, 1996, and from Gander to Detroit on flights operated between London (Gatwick) and Detroit from August 10 to August 17, 1996; and
2. From Gander to Dublin on Orlando-Dublin charter flights: TZ8726 operated on Fridays and Saturdays between August 9 and August 17, 1996, and TZ8728 operated biweekly on Sundays and Mondays between August 12 and August 26, 1996.

It should be noted that the Agency is not bound by its previous decisions and that, accordingly, this exemption should not be relied upon for justification for similar applications in the future. Further, the Agency advises that the exemption granted herein does not exempt American Trans Air, Inc. from the requirements of other legislative acts or regulations, including those of Transport Canada.

This Order takes effect on August 9, 1996, the date on which the decision of the Agency was communicated by letter to the parties of record.