Order No. 2008-A-48

February 5, 2008

February 5, 2008

IN THE MATTER OF an application by Les Investissements Nolinor Inc. carrying on business as Nolinor Aviation and Nolinor for exemptions from the application of certain provisions of the Air Transportation Regulations, SOR/88-58, as amended, where those provisions conflict with the Government of Canada's Policy for International All-Cargo Charter Air Services announced by the Minister of Transport on May 29, 1998 and the Government of Canada's Policy for International Passenger Charter Air Services announced by the Minister of Transport on April 4, 2000.

File No. M4210/N215-2


Les Investissements Nolinor Inc. carrying on business as Nolinor Aviation and Nolinor (hereinafter the Licensee) has applied to the Canadian Transportation Agency (hereinafter the Agency) for the exemptions set out in the title. The application was complete on January 17, 2008.

Under Licence No. 980035, the Licensee is authorized to operate a non-scheduled international service, medium aircraft, a non-scheduled international service, large aircraft and a non-scheduled international service, all-cargo aircraft, to transport traffic on a charter basis between Canada and any other country.

On May 29, 1998, the Minister of Transport (hereinafter the Minister) announced Canada's Policy for International All-Cargo Charter Air Services (hereinafter the International All-Cargo Charter Policy).

On April 4, 2000, the Minister announced Canada's Policy for International Passenger Charter Air Services (hereinafter the International Passenger Charter Policy).

The Agency is in the process of amending the Air Transportation Regulations (hereinafter the ATR) to ensure that they conform with both the International All-Cargo Charter Policy and the International Passenger Charter Policy. However, the Minister has asked the Agency to take measures to implement the policies while the amendments to the ATR are being developed.

Pursuant to paragraph 80(1)(c) of the Canada Transportation Act, S.C., 1996, c. 10, as amended (hereinafter the CTA), the Agency may exempt a person from the application of any of the provisions of the ATR on such terms and conditions as it deems appropriate where the Agency is of the opinion that compliance with the provision by the person is unnecessary, undesirable or impractical.

The Agency has carefully reviewed and considered the application, and all of the material filed in support thereof, and is of the opinion that, in light of the International All-Cargo Charter Policy and the International Passenger Charter Policy, compliance by the Licensee with certain provisions of the ATR is unnecessary in this case.

Accordingly, the Agency, pursuant to paragraph 80(1)(c) of the CTA, hereby exempts the Licensee from the application of the following provisions of the ATR with respect to each charter type operated pursuant to its non-scheduled international Licence No. 980035, from the date of this Order until such time as the amendments to the ATR are promulgated, subject to the terms and conditions set out below, as well as to any terms and conditions contained in any charter program permit issued to the Licensee by the Agency in relation to this Order:

  1. In respect of international passenger charters of the Advance Booking (ABC), Inclusive Tour (ITC), Common Purpose (CPC) and Advance Booking/Inclusive Tour (ABC/ITC) types, the provisions of Part III of the ATR which require that:
    1. an ABC be sold to the public not later than a specified number of days prior to the date of departure;
    2. an air carrier provide return air transportation;
    3. tariffs filed with the Agency include rates to be charged for the charter of aircraft;
    4. return transportation not be commenced prior to a certain number of days following the day of departure from the point of origin; and
    5. a minimum price per seat be charged for charter transportation (floor price rule).
  2. In respect of international entity charters, the provisions of Part III of the ATR that:
    1. restrict the number of charterers to one;
    2. require that an affidavit of the charterer be filed with the Agency verifying the information set out in paragraph 34(1)(c) of the ATR; and
    3. require tariffs filed with the Agency to include rates to be charged for the charter of aircraft in respect of entity passenger charters.

The Agency also exempts the Licensee from the application of paragraph 20(a) of Part II of the ATR, as it relates to the transportation of cargo, which prohibits a licensee from chartering an aircraft to a person who obtains payment for traffic carried.

Terms and Conditions of Exemption Order

  1. Three charterers will be permitted for entity passenger charters.
  2. There will be no limit to the number of charterers for cargo charters.
  3. The entire capacity of an aircraft must be chartered.
  4. The direct sale of charter seats by the licensee to the public is prohibited.
  5. Direct sale by a licensee at a toll per unit is prohibited.
  6. Advance payments made for charter transportation shall be protected in accordance with the ATR.
  7. The International All-Cargo Charter Policy and the International Passenger Charter Policy envisage that foreign charter carriers should have the ability to operate under the same conditions as Canadian charter carriers, provided acceptable reciprocity exists for Canadian carriers.

This Order does not exempt the Licensee from the requirements of other acts or regulations, including those of Transport Canada.

In the event of any conflict between this Order and any terms and conditions of a charter program permit, the charter program permit shall prevail.

This Order shall be affixed to Licence No. 980035.

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