Order No. 2008-A-510

November 20, 2008

File No. M4210/A74-4-65

Air Canada has applied to the Canadian Transportation Agency (the Agency) for the exemption set out in the title. The application was complete on October 24, 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, 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 temporary Licence No. 030161, Air Canada is authorized to operate international air services on a scheduled basis between Canada and Grenada.

Condition No. 2 of Licence No. 030161 states:

Unless terminated at an earlier date in accordance with the CTA, this licence shall terminate on October 31, 2009.

Air Canada states that compliance with section 59 of the CTA is undesirable if the travelling public is to be able to take advantage of its services without interruption between Canada and Grenada.

The Agency has carefully reviewed and considered the application and finds that for the service to be viable, Air Canada must be able to continue selling seats without interruption. Therefore, the Agency finds that compliance by Air Canada with section 59 of the CTA is impractical in the present circumstances.

Accordingly, the Agency, pursuant to paragraph 80(1)(c) of the CTA, exempts Air Canada from the application of section 59 of the CTA, effective from the date of this Order, thereby permitting Air Canada to sell, cause to be sold or publicly offer for sale in Canada international air services on a scheduled basis, between Canada and Grenada, for travel beyond October 31, 2009, without holding the required licence, subject to the following conditions:

1. This exemption does not relieve Air Canada from the requirement to hold a licence in respect of the services to be provided and, accordingly, no flights shall be operated until the appropriate licence authority has been granted.
2. Should the licence not issue by October 31, 2009, Air Canada 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 Air Canada. If such arrangements are not possible or acceptable to the passenger, Air Canada shall provide a full refund of all monies paid by the passenger.

This exemption is valid until October 31, 2009.

This exemption does not exempt Air Canada from the requirements of other legislative acts or regulations, including those of Transport Canada.