Order No. 2003-A-458
August 21, 2003
File No. M4210/K14-2
Under Licence No. 967030, Kelowna Flightcraft Air Charter Ltd. (hereinafter Kelowna) is authorized, inter alia, to operate a non-scheduled international service, large aircraft, to transport traffic on a charter basis between Canada and any other country.
On July 30, 2003, Kelowna applied to the Canadian Transportation Agency (hereinafter the Agency) for an exemption from the application of paragraph 18(c) of the Air Transportation Regulations, SOR/88-58, as amended (hereinafter the ATR), in order to permit Kelowna to operate aircraft bearing a different logo and style in addition to its own.
Paragraph 18(c) of the ATR provides that:
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.
Kelowna states that it is currently negotiating a charter contract with Red Seal Vacations Ltd. doing business as Sunwing (hereinafter Sunwing) and in anticipation of a successful contract, Kelowna requests an exemption from paragraph 18(c) of the ATR.
Pursuant to the proposed design sketch filed with Kelowna's application, the new design would display the name "Kelowna" on the lower front half of the side of the aircraft, and the name "Sunwing", in larger letters, on the top front half of the side of the aircraft and Sunwing's website address on the back half of the aircraft.
In its application, Kelowna indicates that all printed material on board the aircraft will clearly indicate that the air carrier is Kelowna.
The Agency has carefully considered Kelowna's application and the attachments filed in support thereof.
The Agency recognizes Kelowna's need to use its aircraft as a means to provide advertisement for its business partners. However, such advertisement should not be done in a manner that could create confusion in the travelling public's mind as to the name of the carrier which is operating the air service.
In the present case, the design sketch provided in support of the application shows the name "Sunwing" displayed on the top front half of the side of the aircraft in much larger size than the name "Kelowna" displayed on the lower front half of the side of the aircraft and Sunwing's website address on the back half of the aircraft. The Agency considers that the proposed design is likely to create confusion in the travelling public's mind as to who the carrier operating the service is.
In order to avoid confusion for the travelling public and to make it clear that Kelowna is the operator of the service, the Agency is of the view that the name "Kelowna", displayed on the side of the aircraft, should be no smaller than the name "Sunwing". Furthermore, all public solicitation and advertising should clearly indicate that Kelowna is the operator of the air service.
The Agency is of the view that these measures, combined with the fact that all printed material on board the aircraft (safety cards, questionnaires, etc.) will clearly identify Kelowna as the air carrier that is operating the service, will ensure that the travelling public is clearly aware that Kelowna is the operator of the service.
In light of the considerations set out above, and subject to the following conditions, the Agency finds that compliance with paragraph 18(c) of the ATR by Kelowna is unnecessary in this case.
Accordingly, pursuant to paragraph 80(1)(c) of the Canada Transportation Act, S.C., 1996, c. 10, the Agency hereby exempts Kelowna from the application of paragraph 18(c) of the ATR to permit Kelowna to operate a non-scheduled international service displaying the name "Sunwing" and Sunwing's website address in addition to Kelowna's name on its aircraft, subject to the following conditions:
- The name "Sunwing", displayed on the side of the aircraft, should be no larger than the name "Kelowna".
- All printed material on board the aircraft must clearly indicate that Kelowna is operating the air service.
- Kelowna shall ensure that it is clearly identified as the operator of the air service in all public solicitations and representations (including invoices and tickets issued) by Kelowna and Sunwing in respect of services contracted between them.
A copy of this Order shall be carried on board the aircraft and be provided to foreign authorities upon request.
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