Order No. 2010-A-4

[1] On December 7, 2009, the Minister of Transport, Infrastructure and Communities (Minister) directed the Canadian Transportation Agency (Agency) to allow U.S. carriers to operate charter flights under season-long contracts with all professional sports teams that include multiple stops in Canada subject to certain conditions. The conditions imposed on U.S. carriers are equivalent, in terms of comity and reciprocity, to the monitoring and reporting conditions imposed by the United States Department of Transportation on Canadian carriers.

[2] Section 76 of the Canada Transportation Act, S.C., 1996, c. 10, as amended (CTA), provides, in part, that where the Minister determines that it is necessary or advisable to provide direction to the Agency in respect of the exercise of any of its powers or the performance of any of its duties or functions relating to international service, the Minister may issue to the Agency directions that are binding on, and shall be complied with by, the Agency in the exercise of its powers or the performance of its duties or functions relating to international service.

[3] Subsection 74(1) of the CTA provides, in part, that subject to any directions issued to the Agency under section 76 of the CTA, the Agency may make a carrier's non-scheduled international licence subject, in addition to any terms and conditions prescribed in respect of the licence, to such terms and conditions as the Agency deems appropriate.

[4] The Ministerial Direction states that U.S. carriers that operate charter flights under season-long contracts with professional sports teams that include multiple stops in Canada must meet regulatory requirements as provided for in Division III (Transborder Passenger Non-Resaleable Charters) and Division V (Charters Originating in the United States) of Part IV of the Air Transportation Regulations, SOR/88-58, as amended (ATR) with respect to those flights, and must certify in writing to the satisfaction of the Agency that they will implement the monitoring and reporting measures stated in this directive and communicated to U.S. carriers through a Notice issued by the Agency on December 8, 2009.

[5] On December 18, 2009 and subsequently amended on December 29, 2009, Swift Air, L.L.C. carrying on business as Swift Air (Swift Air) filed a certification with the Agency that it will implement the monitoring and reporting measures set out in the Notice dated December 8, 2009, namely:

1. To designate a compliance officer whose function is to ensure compliance with all applicable Canadian cabotage regulations and who will monitor all season-long charter flights for professional sports organizations (Organization) to ensure that the air carrier does not provide local transportation between points in Canada;
2. At the beginning of each season covered by an Organization charter contract, the carrier will provide the Agency with a copy of each Organization charter contract it has entered into, the date upon which the flights under the contract commence, the end date for the season covered by the contract and a roster of each Organization with which the air carrier has entered into the charter contract;
3. To ensure that the Organization roster consists only of individuals either directly employed by the Organization or under contract to the Organization during the course of the season;
4. To notify the Agency, in writing of any changes to the roster within seven calendar days of being notified of such changes by the Organization or becoming aware of such changes;
5. To notify the Agency, through the compliance officer, on the last day of each month, of any person carried on an Organization charter flight who has not traveled on an international segment, into or out of Canada, with an explanation as to why that person has not traveled internationally and provide a plan to have that person transported internationally on a charter flight conducted by the carrier during the following two-month period;
6. To ensure that the air carrier's manifests set forth the requirement of not providing local transportation between points in Canada and the requirement that each person carried between points in Canada must be carried on at least one cross-border flight pursuant to the Organization charter contract;
7. To ensure that the air carrier's flight service director for each Organization charter flight checks each person boarding the charter flight against the manifest and the Organization roster and forbids carriage to anyone not on the roster of the Organization;
8. To provide the Agency, within 30 days after the final flight of the season under each contract, a letter from an appropriate senior officer of the air carrier, certifying that either a) no persons were transported between two Canadian points who were not also transported into or out of Canada on the charter flights in question or b) certain specified persons were so transported in which case the certification shall be accompanied with a list of the names of those persons and the points between which they were transported and the dates of the transportation;
9. To advise the Agency of any existing compliance measures that it has in place to ensure no local transportation between points in Canada is provided and that it will continue to implement such measures during the period covered by the carrier's Organization charter flights; and
10. To provide a copy of the certification to the Organization with which the air carrier contracts.

[6] The Agency is satisfied that Swift Air has certified that it will implement the compliance and monitoring measures with respect to charter flights under season-long contracts with all professional sports teams that include multiple stops in Canada and therefore, the Agency, pursuant to subsection 74(1) of the CTA, amends Swift Air's non-scheduled international Licence No. 050138 by adding the following condition:

• The Licensee shall comply with the monitoring and reporting measures as set out in the written certification filed with the Agency on December 18, 2009 and subsequently amended on December 29, 2009.

[7] A new document of licence bearing Licence No. 050138 will be issued to Swift Air, L.L.C. carrying on business as Swift Air.