Order No. 2008-A-5

January 7, 2008

File No. M4212/E23-4

El Al Israel Airlines Ltd. (hereinafter El Al) has applied to the Canadian Transportation Agency (hereinafter the Agency) for the exemption set out in the title. The application was received on December 3, 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. 070022, El Al is authorized to operate a scheduled international service in a manner consistent with the Agreed Minute between Canada and Israel signed on March 14, 2007.

Condition No. 3 of the said licence states:

This licence, unless cancelled at an earlier date, shall be in effect until March 29, 2008.

Pursuant to Decision No. 136-A-2007 dated March 22, 2007, El Al is required to submit a request for another authority to the Agency by no later than February 26, 2008.

El Al states that it is requesting this exemption in order to continue selling services while a new licence has not yet been issued.

The Agency has carefully reviewed and considered the application and is of the opinion that in order for the service to be viable, El Al must be able to continue selling seats without interruption. Therefore, the Agency finds that compliance by El Al 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 El Al from the application of section 59 of the CTA, effective from the date of this Order, thereby permitting El Al to sell, cause to be sold or publicly offer for sale in Canada a scheduled international service between Israel and Canada for travel beyond March 29, 2008, without holding the required licence, subject to the following conditions:

1. The exemption authorized herein does not relieve El Al 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 29, 2008, El Al 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 El Al 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 29, 2008.

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