Order No. 1997-A-59

January 30, 1997

File No. M4211/N79-5-2

WHEREAS on November 25, 1996, Northwest Airlines, Inc. (hereinafter Northwest) applied to the Canadian Transportation Agency for a licence to operate a scheduled international service between Minneapolis/St. Paul, Minnesota, U.S.A. and Toronto, Ontario, Canada. In addition, Northwest advised that it proposed to commence the service on March 2, 1997 and that it intended to commence selling the service on December 1, 1996;

AND WHEREAS on December 6, 1996, Northwest advised the Agency that it wished to commence its service on February 24, 1997 instead of March 2, 1997;

AND WHEREAS section 59 of the Canada Transportation Act (hereinafter the CTA) prohibits Northwest from selling, causing to be sold or publicly offering for sale in Canada a service without holding a licence in respect of that service; and therefore an exemption from the application of this provision is necessary;

AND WHEREAS the Agency notes that under Licence No. 951710, Northwest is authorized to operate a scheduled international service between Toronto and Detroit, and that, pursuant to the terms of the Air Transport Agreement between Canada and the United States of America signed on February 24, 1995, Northwest is entitled to provide service beyond Detroit to other points in the United States without change of aircraft or flight number. Consequently, Northwest could provide direct service between Minneapolis/ St. Paul and Toronto with a stop in Detroit and could advertise or sell this service;

AND WHEREAS the Agency has reviewed the application and all of the material received and on file and is of the opinion that compliance by Northwest with section 59 of the CTA is undesirable in the present circumstances.

NOW THEREFORE, IT IS ORDERED THAT:

Pursuant to paragraph 80(1)(c) of the CTA, Northwest is hereby exempted from the application of section 59 of the CTA, thereby permitting this air carrier to sell, cause to be sold or publicly offer for sale in Canada a non-stop service between Minneapolis/St. Paul and Toronto for transportation, for the period commencing February 24, 1997, without holding the licence authorizing service between these points.

The determinations set out in this Decision take effect on November 29 and December 17, 1996, the dates on which they were communicated to the parties of record.