Order No. 2008-A-437

October 23, 2008

October 23, 2008

IN THE MATTER OF an application for an exemption from section 59 of the Canada Transportation Act, S.C., 1996, c. 10, as amended, to permit China Airlines Limited carrying on business as China Airlines to sell, cause to be sold or publicly offer for sale in Canada a scheduled international service between Taipei and Canada, in the absence of a licence.

File No. M4212/C506-4


China Airlines Limited carrying on business as China Airlines (China Airlines) applied to the Canadian Transportation Agency (the Agency) for the exemption set out in the title. The application was complete on October 17, 2008.

Section 59 of the Canada Transportation Act (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 and that licence is not suspended.

Under Licence No. 000042, China Airlines is authorized to operate a scheduled international service in a manner consistent with the Supplementary Confidential Memorandum on Air Services between the Canadian Trade Office in Taipei and the Civil Aeronautics Administration of the Ministry of Transportation and Communications in Taipei signed on February 25, 1999, as amended.

Condition No. 3 of Licence No. 000042 states:

The authority granted herein shall terminate on March 31, 2009.

China Airlines states that it wishes to sell, cause to be sold or publicly offer for sale in Canada its service under Licence No. 000042 for travel beyond March 31, 2009. China Airlines submits that its application for a one-year extension of the authority granted under Licence No. 000042 will be filed with the Agency at least thirty (30) days before the March 31, 2009 termination date.

The Agency has carefully reviewed and considered the application and is of the opinion that for the service to be viable, China Airlines must be able to continue selling seats without interruption. Therefore, the Agency finds that compliance by China Airlines 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 China 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 Taipei and Canada, for travel beyond March 31, 2009, without holding the required licence, subject to the following conditions:

  1. The exemption authorized herein does not relieve China Airlines 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 March 31, 2009, China 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 China 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 March 31, 2009.

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

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