Order No. 2010-A-639

December 14, 2010

File No. M4210/A328-4-22

Air Transat A.T. Inc. carrying on business as Air Transat (Air Transat) has applied to the Canadian Transportation Agency (Agency) for an exemption to permit it to sell, cause to be sold or publicly offer for sale in Canada, a scheduled international service, large aircraft between Canada and Turkey, in the absence of a licence.

Section 59 of the Canada Transportation Act (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 under that part in respect of that service and that licence is not suspended.

The Minister of Transport designated Air Transat to provide scheduled international air services to Turkey.

Air Transat is currently in the process of applying for a licence to operate a scheduled international service, large aircraft between Canada and Turkey. Because the application has yet to be filed with the Agency, an exemption from the application of section 59 of the CTA is necessary in order to allow it to sell, cause to be sold or publicly offer for sale in Canada the proposed air service prior to obtaining the applied for licence.

The Agency has reviewed the application and finds that in order for the proposed service to be viable, Air Transat must be able to offer for sale seats at the earliest possible date. Therefore, the Agency finds that compliance by Air Transat 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 Transat from the application of section 59 of the CTA, to permit it to sell, cause to be sold or publicly offer for sale in Canada a scheduled international service, large aircraft between Canada and Turkey, effective from the date of this Order, without holding the required licence, subject to the following conditions:

1. The exemption does not relieve Air Transat 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, Air Transat 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 Transat. If such arrangements are not possible or acceptable to the passengers, Air Transat shall provide a full refund of all monies paid by them.
3. All passengers shall be notified, before reservation, that the scheduled international service is subject to government approval. All future advertising in any media, whether in writing or by telecommunication, shall also include this information.
4. Air Transat shall apply its published tariffs, on file with the Agency and in effect, for the sale of transportation.

Air Transat is not exempted from the requirements of other legislative acts or regulations, including those of Transport Canada.