Order No. 2000-A-20

January 21, 2000

File No. M4835-3-18

On December 20, 1999, Mandarin Airlines Ltd. (hereinafter Mandarin) applied to the Canadian Transportation Agency (hereinafter the Agency) for the exemption set out in the title.

Under Licence No. 965008, Mandarin is authorized to operate a scheduled international service between Vancouver and Taipei. Condition No. 2 thereof states that:

Unless otherwise authorized by the Agency upon application, the Licensee shall in providing the scheduled international service authorized herein exclusively use aircraft bearing the logos, trade marks, trade names and/or other corporate identification of Mandarin Airlines Ltd.

The Minister of Transport, by letter dated May 1, 1999, pursuant to paragraph 76(1)(e) of the Canada Transportation Act, S.C., 1996, c. 10 (hereinafter the CTA), directed the Agency to grant Mandarin and various other air carriers all necessary authorizations that would allow Mandarin to operate in a manner consistent with the Supplementary Confidential Memorandum on Air Services between the Canadian Trade Office in Taipei and the Civil Aeronautics Administration of the Ministry of Transportation and Communications in Taipei signed on February 25, 1999. Mandarin is entitled under this Memorandum to operate a daily service between Vancouver and Taipei. Due to its limited fleet, Mandarin states that it requires the use of one China Airlines Ltd. (hereinafter China Airlines) B747-400 aircraft, in China Airlines livery, so that Mandarin can operate its winter schedule as filed with the Agency, between Vancouver and Taipei from February 1, 2000 to March 25, 2000. The aircraft would be operated with Mandarin flight and cabin crew.

Paragraphs 18(a) and (c) of the Air Transportation Regulations (hereinafter the ATR) state that:

Every scheduled international licence ... is subject to the following conditions:

a) the licensee shall, on reasonable request therefor, provide transportation in accordance with the terms and conditions of the licence and shall furnish such services, equipment and facilities as are necessary for the purposes of that transportation;

c) the licensee shall not operate an international service, or represent by advertisement or otherwise the licensee as operating such a service, under a name other than that specified in the licence.

In order to operate the proposed service, an exemption from the application of paragraphs 18(a) and (c) of the ATR is required because Mandarin will not be providing its own aircraft and the aircraft will be operated in the livery of China Airlines.

By Order No. 1999-A-470 dated October 29, 1999, the Agency approved the same arrangement between Mandarin and China Airlines for the period from October 31, 1999 to January 31, 2000.

The Agency has reviewed and considered the application and the material filed in support thereof. In order for Mandarin to operate its winter schedule as filed with the Agency, and in light of the limited period of time for which the authorization is requested, the Agency is of the opinion that compliance by Mandarin with the provisions of paragraphs 18(a) and (c) of the ATR is impractical in this case.

Accordingly, the Agency, pursuant to paragraph 80(1)(c) of the CTA, hereby orders that Mandarin be exempt from the application of paragraphs 18(a) and (c) of the ATR to allow Mandarin to use one of China Airlines Boeing 747-400 aircraft, in the livery of China Airlines, while providing its scheduled international service between Taipei, Taiwan, and Vancouver, Canada, from February 1, 2000 to March 25, 2000.

This exemption is subject to the following conditions:

1. Mandarin shall be responsible for the operational control of the China Airlines aircraft which shall be operated by Mandarin using its own flight and cabin crews.
2. The services provided by Mandarin using aircraft provided by China Airlines shall be operated under Mandarin's scheduled international licence.
3. Mandarin shall use the China Airlines aircraft only to the extent necessary to operate its winter schedule as filed with the Agency.

The exemption granted herein does not exempt Mandarin and China Airlines from the requirement to comply with the requirements of other legislative acts or regulations, including those of Transport Canada.