Order No. 2003-A-608

December 10, 2003

File No. M4212/E23-3-1

El Al Israel Airlines Ltd. (hereinafter El Al) applied to the Canadian Transportation Agency (hereinafter the Agency) for the exemption set out in the title. The application was received on November 20, 2003.

Section 59 of the Canada Transportation Act (hereinafter the CTA) states that no person shall sell, cause to be sold or publicly offer for sale in Canada an air service unless, where required under Part II of the CTA, the person holds a licence under that part in respect of that service.

Under Licence No. 030147, El Al is authorized to operate a scheduled international service in a manner consistent with the Agreed Minute between Canada and Israel signed on October 9, 2003.

Condition No. 3 of Licence No. 030147 states:

This licence, unless cancelled at an earlier date, shall be in effect until March 27, 2004.

By Decision No. 587-A-2003 dated October 20, 2003, El Al is required to submit a request for extension of the authority to the Agency for approval by no later than February 27, 2004.

El Al states that the requested exemption will allow it to continue selling seats for services to be operated beyond March 27, 2004.

The Agency has carefully reviewed and considered the application and is of the opinion that in order for the service to be viable, El Al must be able to continue selling seats without interruption. Therefore, the Agency finds that compliance by El Al 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 El Al from the application of section 59 of the CTA, effective from the date of this Order, thereby permitting the air carrier to sell, cause to be sold or publicly offer for sale in Canada a scheduled international service between Israel and Canada for travel beyond March 27, 2004, without holding the required licence, subject to the following conditions:

1. All passengers shall be notified, before reservation, that the scheduled international service is subject to government approval. All future advertising in any media, whether in writing or by telecommunication, shall also include this information.
2. The exemption authorized herein does not relieve El Al 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. El Al shall arrange to provide alternative air transportation by an appropriately licensed air carrier, at no additional cost for all passengers who have made reservations with El Al or, if such arrangements are not acceptable to the passenger, to provide a full refund of all monies paid by the passenger, should the scheduled international licence not issue.

The exemption authorized herein is valid until March 27, 2004.

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