Order No. 2000-A-499

December 28, 2000

December 28, 2000

IN THE MATTER OF an application by Air Canada, on behalf of itself and Canadian Airlines International Ltd. carrying on business under the firm name and style of Canadian Airlines International or Canadi*n Airlines or Canadi*n, for an exemption from the application of the provisions of section 58 of the Canada Transportation Act, S.C., 1996, c. 10, in order to allow the issuance of licences to Air Canada.

File Nos. M4210/C14-4-1
M4210/C14-4-5
M4210/C14-4-7
M4210/C14-4-4
M4210/C14-4-6
M4210/C14-4-8
M4210/C14-4-24
M4210/C14-4-25
M4210/C14-4-9
M4210/C14-4-10
M4210/C14-4-11
M4210/C14-4-12
M4210/C14-4-21


Under Licence No. 961036, Canadian Airlines International Ltd. carrying on business under the firm name and style of Canadian Airlines International or Canadi*n Airlines or Canadi*n (hereinafter Canadi*n) is authorized to operate a scheduled international service, large aircraft, on the route(s) set out in the Agreement between the Government of Canada and the Government of the Republic of the Philippines signed on January 14, 1997 as amended.

Under Licence No. 970002, Canadi*n is authorized to operate a scheduled international service, large aircraft, on the route set out in the Agreement between the Government of Canada and the Government of the Republic of Guatemala on Air Transport initialled ad referendum on November 22, 1996.

Under Licence No. 970003, Canadi*n is authorized to operate a scheduled international service, large aircraft, on the route set out in the Agreement between the Government of Canada and the Government of the Dominican Republic on Air Transport initialled ad referendum on June 18, 1986.

Under Licence No. 970004, Canadi*n is authorized to operate a scheduled international service, large aircraft, on the route set out in the Agreement between the Government of Canada and the Government of the Republic of El Salvador on Air Transport initialled ad referendum on November 22, 1996.

Under Licence No. 970005, Canadi*n is authorized to operate a scheduled international service, large aircraft, on the route set out in the Agreement between the Government of Canada and the Government of the Republic of Costa Rica on Air Transport initialled ad referendum on November 22, 1996.

Under Licence No. 970024, Canadi*n is authorized to operate a scheduled international service, large aircraft, on the route set out in the Agreement between the Government of Canada and the Government of the Republic of Nicaragua on Air Transport initialled ad referendum on November 22, 1996.

Under Licence No. 975004, Canadi*n is authorized to operate a scheduled international service, large aircraft, on the route(s) set out in the Agreement between the Government of Canada and the Government of Italy for Air Services signed on February 2, 1960, as amended by Exchange of Notes on August 28, 1972.

Under Licence No. 975005, Canadi*n is authorized to operate a scheduled international service, large aircraft, on the route(s) set out in the Air Transport Agreement between the Government of Canada and the Government of Fiji signed on April 30, 1974.

Under Licence No. 975009, Canadi*n is authorized to operate a scheduled international service, large aircraft, on the route(s) set out in the Air Transport Agreement between the Government of Canada and the Government of the Republic of Panama signed on May 7, 1968.

Under Licence No. 975010, Canadi*n is authorized to operate a scheduled international service, large aircraft, on the route(s) set out in the Agreement between the Government of Canada and the Government of the Republic of Chile on Air Transport signed on July 6, 1990.

Under Licence No. 975011, Canadi*n is authorized to operate a scheduled international service, large aircraft, on the route(s) set out in the Commercial Air Transport Agreement between the Government of Canada and the Government of the Argentine Republic signed on May 8, 1979.

Under Licence No. 975012, Canadi*n is authorized to operate a scheduled international service, large aircraft, on the route(s) set out in the Agreement between the Government of Canada and the Government of Peru for Air Services signed on February 18, 1954, as amended.

Under Licence No. 975021, Canadi*n is authorized to operate a scheduled international service, large aircraft, on the route(s) set out in the Agreement between the Government of Canada and the Government of Malaysia on Air Transport initialled ad referendum on May 26, 1995.

Section 58 of the Canada Transportation Act (hereinafter the CTA) provides that a licence issued for the operation of an air service is not transferable.

Air Canada submits that it is in the process of restructuring its commercial air services. As part of its restructuring, Air Canada indicates that Canadi*n will be amalgamating with Air Canada effective January 1, 2001.

The Agency has carefully reviewed all of the material submitted by Air Canada in support of its application and is satisfied that the proposed amalgamation of Air Canada and Canadi*n is in the nature of an internal restructuring.

Accordingly, the Agency is of the opinion that compliance by Canadi*n with section 58 of the CTA is unnecessary in the present circumstances.

The Agency, pursuant to paragraph 80(1)(c) of the CTA, hereby exempts Canadi*n from the application of section 58 of the CTA.

The Agency also notes that Air Canada holds a valid Canadian aviation document and has prescribed liability insurance coverage.

In light of the above, Licence Nos. 961036, 970002, 970003, 970004, 970005, 970024, 975004, 975005, 975009, 975010, 975011, 975012 and 975021 are hereby transferred from Canadi*n to Air Canada.

Pursuant to paragraph 28(1)(a) of the CTA, the Agency directs that the transfer of these licences shall come into force on January 1, 2001.

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