Order No. 2007-A-546

November 30, 2007

File No. M4210/A74-4-46

Air Canada applied to the Canadian Transportation Agency (hereinafter the Agency) for the exemption set out in the title. The application was received on October 30, 2007.

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, if required under Part II of the CTA, the person holds a licence issued under that part in respect of that service and that licence is not suspended.

Under Licence No. 000153, Air Canada is authorized to operate a scheduled international service, large aircraft and a scheduled international service, all-cargo aircraft, on 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.

Condition No. 3 of Licence No. 000153 states:

Unless terminated at an earlier date in accordance with the CTA or the Arrangement, this licence is in effect until October 25, 2008.

Air Canada states that compliance with section 59 of the CTA is undesirable if the travelling public is to be able to take advantage of its service without interruption between Canada and the Republic of Singapore.

The Agency has carefully reviewed and considered the application and is of the opinion that in order for the service to be viable, Air Canada must be able to continue selling seats without interruption. Therefore, the Agency finds that compliance by Air Canada 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 Air Canada 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, large aircraft and a scheduled international service, all-cargo aircraft, between Canada and the Republic of Singapore for travel beyond October 25, 2008, without holding the required licence, subject to the following conditions:

1. The exemption authorized herein does not relieve Air Canada 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.
2. Should the scheduled international licence not issue by October 25, 2008, Air Canada 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 Air Canada 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 October 25, 2008.

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