Order No. 2010-A-92

February 16, 2010

File No. M4210/A74-4-66

Air Canada 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, an international air service between Canada and Colombia, 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.

Under temporary Licence No. 040036, Air Canada is authorized to operate international air services on a scheduled basis, limited to five flights per week, between Canada and Colombia.

Condition No. 2 of the said licence states:

The licence shall terminate on October 31, 2010.

Air Canada states that it is requesting this exemption to continue selling seats without interruption to ensure the viability of the service beyond October 31, 2010. Air Canada also submits that compliance with section 59 of the CTA is impractical in the present circumstances.

The Agency 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, 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 Colombia, for travel beyond October 31, 2010, without holding the required licence, subject to the following conditions:

1. The exemption does not relieve Air Canada 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 licence not be issued by October 31, 2010, Air Canada shall arrange to provide alternative air transportation by an appropriately licensed air carrier, at no additional costs for all passengers who have made reservations with Air Canada or, if such arrangements are not possible or acceptable to the passenger, to provide a full refund of all monies paid by the passenger.

This exemption is valid until October 31, 2010.

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

Order No. 2009-A-518 becomes moot and is no longer in effect.