Order No. 2001-A-41

February 2, 2001

File No. M4212/V85-3

Virgin Atlantic Airways Limited (hereinafter Virgin Atlantic) has applied to the Canadian Transportation Agency (hereinafter the Agency) for the exemption set out in the title. The application was received on January 24, 2001.

Section 59 of the Canada Transportation Act (hereinafter the CTA) prohibits Virgin Atlantic from selling, causing to be sold or publicly offering for sale in Canada an air service without holding a licence in respect of that service. Virgin Atlantic has applied for a licence to operate a scheduled international service between Toronto, Ontario, Canada and London (Gatwick), England; however, because the application is not yet complete, an exemption from the application of section 59 of the CTA is necessary in order that Virgin Atlantic can sell, cause to be sold or publicly offer for sale in Canada the air service prior to obtaining the applied for licence.

The Agency has carefully reviewed and considered the application and is of the opinion that in order for the proposed service to be viable, Virgin Atlantic must be able to offer for sale seats at the earliest possible date. Therefore, the Agency finds that compliance by Virgin Atlantic with section 59 of the CTA is impractical in the present circumstances.

Accordingly, the Agency, pursuant to paragraph 80(1)(c) of the CTA, hereby exempts Virgin Atlantic from the application of section 59 of the CTA, thereby permitting the air carrier to sell, cause to be sold or publicly offer for sale a scheduled international service between Toronto, Ontario, Canada and London (Gatwick), England effective from the date of this Decision, without holding the required licence, subject to the following conditions:

1. This exemption is limited to scheduled international air services between Toronto, Ontario, Canada and London (Gatwick), England.
2. The exemption authorized herein does not relieve Virgin Atlantic from the requirement to hold a licence in respect of the service to be provided and, accordingly, no flights shall be operated until the appropriate licence authority has been granted.
3. All passengers and shippers shall be notified, before reservation, that the services are subject to government approval. All future advertising in any media, whether in writing or by telecommunication, shall also include this information.
4. Virgin Atlantic shall maintain its written undertaking dated January 30, 2001 that it will:
   • arrange to provide alternative air transportation by an appropriately licensed air carrier, at no additional cost for all passengers who have made reservations with Virgin Atlantic and shippers who reserved space on the flight should the scheduled international licence not issue; and
   • maintain, at all times, during the term of the exemption, liquid cash reserves in excess of the funds received for advance sales from Canadian originating passengers on the proposed service between Toronto, Ontario, Canada and London (Gatwick), England.

The exemption granted herein does not exempt Virgin Atlantic from the requirements of other legislative acts or regulations, including those of Transport Canada.