Order No. 2006-A-4

January 3, 2006

File No. M4210/S496-3

Under Licence No. 010001, Skyservice Airlines Inc. carrying on business as Skyservice (hereinafter Skyservice) is authorized to operate a scheduled international service, large aircraft, to transport traffic between points in Canada and points in the United States of America.

On September 23, 2005, as amended on October 12, 2005, Skyservice submitted a revised design sketch and requested permission to replace the current advertising label "Simply the best" that appears on the back fuselage of its aircraft that also displays the name Sunquest by the new advertising label "good to go..." as Sunquest has decided to rejuvenate its brand. Skyservice adds that all of its aircraft may be used interchangeably in its operations pursuant to any of its licences.

Paragraph 18(c) of the Air Transportation Regulations, SOR/88-58, as amended (hereinafter 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.

By Order Nos. 2004-A-24 dated January 13, 2004, as amended by Decision Nos. 267-A-2004 dated May 25, 2004 and 475-A-2004 dated September 8, 2004; 2004-A-369 dated August 20, 2004, Skyservice was, subject to certain conditions, granted exemptions from the application of paragraph 18(c) of the ATR, in order to permit Skyservice to operate its scheduled international service under Licence No. 010001 by using aircraft displaying in various locations (e.g. back fuselage, tail, engine nacelle), respectively: the name of "Conquest"; the name, internet address of "Signature"; the name and internet address of "Sunquest" along with the slogan "Simply the best" and the names of Sunquest's sister companies "Alba Tours" or "Tours Maison" ; and, the name, internet address and design logo of "Sunwing".

The Agency notes that Skyservice no longer intends to use the slogan "Simply the best". The Agency also notes that aircraft may be used interchangeably by Skyservice in its operations pursuant to any of its licences. Therefore the Agency finds that Skyservice requires exemptions from paragraph 18(c) of the ATR to display its partners' advertisement on any aircraft without restriction as to which classes of air services it is operating. In light of the numerous exemptions listed above which reflect numerous business partners, and in light of numerous other similar exemptions in respect of other licence authorities, the Agency has decided to deal with each licence authority separately.

The Agency recognized, in the above-noted rulings, Skyservice's need to use its aircraft as a means to provide advertisement for its business partners. Further, the Agency found it necessary to impose certain conditions in order to avoid confusion for the travelling public and to make it clear that Skyservice is the operator of the air service. Notably, the name Skyservice shall be displayed in larger letters than any of the names, internet addresses, logos or labels of its business partners and Skyservice shall ensure that it is clearly identified as the operator of the air service in public solicitations and representations.

The Agency has carefully considered the application and notes that the design sketch submitted with the application shows the slogan "good to go..." displayed on the back half of the side of the aircraft below the name "Sunquest", in smaller letters than the name "Sunquest" which is already displayed in smaller letters than the name "Skyservice".

In light of the above, the Agency finds that compliance with paragraph 18(c) of the ATR by Skyservice is impractical in this case.

Due to the large number of exemptions from the application of paragraph 18(c) of the ATR granted in several previous decisions and orders of the Agency, the Agency finds it appropriate to consolidate them with the exemption which will be granted herein allowing Skyservice to display the slogan "good to go...".

Accordingly, pursuant to paragraph 80(1)(c) of the Canada Transportation Act, S.C., 1996, c. 10, and subject to the following conditions, the Agency hereby exempts Skyservice from the application of paragraph 18(c) of the ATR to permit Skyservice to operate its scheduled international service by using aircraft displaying: the name and the internet address of "Conquest"; the name, internet address and design logo of "Signature"; the name and internet address of "Sunquest" along with the slogan "good to go..." and the names of Sunquest's sister companies "Alba Tours" or "Tours Maison"; or the name, internet address and design logo of "Sunwing".

1. The name, internet address, design logo or slogan of a business partner displayed on the aircraft, shall be in smaller letters than the name "Skyservice".
2. All printed material on board the aircraft must clearly indicate that Skyservice is operating the air service.
3. Skyservice 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 Skyservice and its business partners in respect of services contracted between them.

As a result of the consolidation of the exemptions as set out above, Order Nos. 2004-A-24 and 2004-A-369 and Decision Nos. 267-A-2004 and 475-A-2004 are no longer in effect.

A copy of this Order shall be carried on board the aircraft and be provided to foreign authorities upon request.

This Order shall form part of Licence No. 010001 and shall remain affixed thereto as long as the said Order is in force.