Order No. 2007-A-66

February 26, 2007

File No. M4210/S496-4-11

Skyservice Airlines Inc. carrying on business as Skyservice (hereinafter the applicant) has applied to the Canadian Transportation Agency (hereinafter the Agency) for the exemption set out in the title. The application was received on February 21, 2007.

Section 59 of the Canada Transportation Act (hereinafter the CTA) prohibits an applicant from selling, causing to be sold or publicly offering for sale in Canada an air service without holding a licence in respect of that service.

By letter dated February 9, 2007, the Minister of Transport designated the applicant to provide scheduled air services to France (on Route 1 of the Canada-France Air Transport Agreement).

The applicant is currently in the process of applying for a licence to operate a scheduled international service, large aircraft, between Canada and France. Because the application has yet to be filed with the Agency, an exemption from the application of section 59 of the CTA is necessary in order to allow the applicant to sell, cause to be sold or publicly offer for sale in Canada the proposed air service prior to obtaining the applied for licence.

The Agency has carefully reviewed and considered the application and is of the opinion that in order for the proposed service to be viable, the applicant must be able to offer for sale seats at the earliest possible date. Therefore, the Agency finds that compliance by the applicant 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 the applicant from the application of section 59 of the CTA, thereby permitting the applicant to sell, cause to be sold or publicly offer for sale in Canada a scheduled international service, large aircraft, between Canada and France, (on Route 1 of the Canada-France Air Transport Agreement), effective from the date of this Order, without holding the required licence, subject to the following conditions:

1. The exemption authorized herein does not relieve the applicant 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, the applicant 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 the applicant. If such arrangements are not possible or acceptable to the passengers, the applicant shall provide a full refund of all monies paid by them.
3. 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.
4. The applicant shall apply its published tariffs on file with the Agency and in effect, for the sale of transportation.

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