Order No. 2004-A-547

December 8, 2004

File No. M4212/S182-3-1

Singapore Airlines Limited (hereinafter Singapore Airlines) applied to the Canadian Transportation Agency (hereinafter the Agency) for the exemption set out in the title. The application was received on August 23, 2004.

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. 965000, Singapore Airlines is authorized to operate a scheduled international service over the route(s) set out in the Arrangement on Air Transport between the Government of Canada and the Government of the Republic of Singapore contained in an Agreed Minute signed on August 15, 1992 (hereinafter the Arrangement).

Condition No. 3 of the said licence states:

Unless terminated at an earlier date in accordance with the CTA or the Arrangement, this licence is in effect until August 16, 2005.

In its application, Singapore Airlines advises that it will be accepting bookings for the period after the termination date of the licence, and, therefore, it requests the exemption in order to be allowed to sell, cause to be sold or publicly offer for sale in Canada its service under Licence No. 965000 for travel beyond August 16, 2005.

Singapore Airlines submits that there is no benefit to the marketplace in imposing a condition on Singapore Airlines for service beyond the licence date that requires it to notify all consumers that the service is "subject to government approval". Singapore Airlines also submits that it will have a contractual obligation to the Canadian customers through the bookings being accepted by the carrier to either provide alternate air transportation or provide a full refund of the monies paid by the consumer. Singapore Airlines maintains that it will not operate any flights until the appropriate licence authority has been granted. It therefore maintains that there is no necessity for the exemption to include these requirements.

The Agency has carefully reviewed and considered the application and is of the opinion that in order for the service to be viable, Singapore Airlines must be able to continue selling seats without interruption. Therefore, the Agency finds that compliance by Singapore Airlines with section 59 of the CTA is impractical in the present circumstances.

The Agency, when granting these types of exemptions, usually includes certain conditions that are intended to increase the level of protection to consumers in such situations. One of these conditions requires the carrier to provide alternative transportation. In this case, Singapore Airlines advises that it will respect these conditions other than the requirement to notify consumers that the scheduled international service is subject to government approval.

The Agency notes that Licence No. 965000 has been renewed on an annual basis in accordance with the terms of an air transport arrangement between the Government of Canada and the Government of the Republic of Singapore. The Agency is of the opinion that, in this case, it is unnecessary for consumers to be notified that the scheduled international service is subject to government approval. This exemption will, however, be subject to the other usual conditions.

Accordingly, the Agency, pursuant to paragraph 80(1)(c) of the CTA, hereby exempts Singapore Airlines 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 the Republic of Singapore and Canada for travel beyond August 16, 2005, without holding the required licence, subject to the following conditions:

1. The exemption authorized herein does not relieve Singapore Airlines from the requirement to hold a licence as required under Part II of the CTA in respect of the service to be provided and, accordingly, no flights shall be operated until the appropriate licence authority has been granted.
2. Should the scheduled international licence not issue by August 16, 2005, Singapore Airlines 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 Singapore Airlines or, if such arrangements are not possible or acceptable to the passenger, to provide a full refund of all monies paid by the passenger.

The exemption authorized herein is valid until August 16, 2005.

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