Order No. 2008-A-487
November 12, 2008
IN THE MATTER OF an application by Singapore Airlines Cargo PTE Ltd. 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.
File No. M4212/S584-2
Singapore Airlines Cargo PTE Ltd. (the Licensee) applied to the Canadian Transportation Agency (the Agency) for the exemptions set out in the title. The application was complete on October 29, 2008.
Under Licence No. 080105, the Licensee is authorized to operate a non-scheduled international service to transport goods on a charter basis between points in Singapore and points in Canada.
On May 29, 1998, the Minister of Transport (the Minister) announced Canada's Policy for International All-Cargo Charter Air Services (the International All-Cargo Charter Policy).
The Agency is in the process of amending the Air Transportation Regulations (the ATR) to ensure that they conform with the International All-Cargo Charter Policy. However, the Minister asked the Agency to take measures to implement the policy 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 (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 finds 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 in support and finds that, in light of the International All-Cargo 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, exempts the Licensee from the application of the following provisions of the ATR with respect to entity cargo charters operated pursuant to its non-scheduled international Licence No. 080105, 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:
In respect of international entity charters, the provisions of Part III of the ATR that:
- restrict the number of charterers to one;
- grant Canadian air carriers the right of first refusal in respect of fifth freedom entity charters proposed to be operated by non-Canadian air carriers; and
- 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.
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
- There will be no limit to the number of charterers for cargo charters.
- The entire capacity of an aircraft must be chartered.
- Direct sale by a licensee at a toll per unit is prohibited.
- The International All-Cargo Charter Policy envisages 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. 080105.
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