Order No. 1999-A-628

December 24, 1999

File No. M5000-A74

Air Canada has applied to the Canadian Transportation Agency (hereinafter the Agency) for the exemption set out in the title. The application was received on December 3, 1999.

Under Licence No. 977155, Air Canada is authorized to operate a non-scheduled international service to transport traffic on a charter basis between Canada and any other country.

Subsections 56(1) and (3) of the Air Transportation Regulations (hereinafter the ATR) state:

(1) On an ABC between Canada and any point in Bermuda, the Caribbean, the Bahamas, Mexico, Central America or the northern coastal regions of South America including Colombia, Venezuela, Guyana, Surinam, French Guianaand the islands adjacent thereto, each passenger reservation must be confirmed with the charterer not later than 14 days prior to the date of departure of the outbound portion of that ABC.

(3) Notwithstanding subsections (1) and (2), the following number of seats may be contracted for sale to the public not later than seven days prior to the date of departure of the outbound portion of an ABC:

(a) 20 seats, where an aircraft has an MCTOW greater than 75,000 pounds (34,029 kg) but not greater than 150,000 pounds (68,058 kg);

(b) 30 seats, where an aircraft has an MCTOW greater than 150,000 pounds (68,058) but not greater than 350,000 pounds (158,802 kg); or

(c) 40 seats, where an aircraft has an MCTOW greater than 350,000 pounds (158,802 kg).

The Agency has carefully reviewed and considered Air Canada's application as well as the documentation filed in support thereof, and is of the opinion that compliance by Air Canada with subsection 56(3) of the ATR is undesirable in this particular case.

Accordingly, the Agency, pursuant to paragraph 80(1)(c) of the Canada Transportation Act, S.C., 1996, c. 10, hereby orders that Air Canada be exempt from the application of subsection 56(3) of the ATR in order to permit Touram Inc. to sell the applicable numbers of Advance Booking Charter seats on Air Canada's charter flights operated between Toronto and Aruba up to the departure date under program permit number A-340/99.