Order No. 2016-A-124

Evelop Airlines SL (Licensee) has applied to the Canadian Transportation Agency (Agency) for exemptions from the ATR where provisions of the ATR are inconsistent with the spirit of the Government of Canada’s Policy for International Passenger Charter Air Services (Passenger Policy) announced on April 4, 2000.

The Licensee is licensed to operate a non‑scheduled international service to transport traffic on a charter basis between Spain and Canada.

The Agency is examining prospective amendments to the ATR to have them better reflect evolving industry practices and current government policies. Pending completion of this initiative, when determining whether to grant exemptions from certain ATR requirements, the Agency will continue to take into consideration those industry practices and government policies, as well as information submitted by the Licensee in support of its application.

In light of the above, the Agency finds that compliance by the Licensee with certain provisions of the ATR is unnecessary in this case.

Accordingly, the Agency, pursuant to paragraph 80(1)(c) of the Canada Transportation Act, S.C., 1996, c. 10, as amended, exempts the Licensee from the application of the following provisions of the ATR with respect to each charter type operated pursuant to its licence, from the date of this Order until such time as the amendments to the ATR are promulgated, subject to the terms and conditions set out below, as well as to any terms and conditions contained in any charter program permit issued to the Licensee by the Agency in relation to this Order:

1. In respect of international passenger charter flights, the provisions of Part III of the ATR which require that:

1. an Advance Booking Charter flight be sold to the public not later than a specified number of days prior to the date of departure;
2. an air carrier provide return air transportation;
3. tariffs filed with the Agency include rates to be charged for the charter of aircraft;
4. return transportation not be commenced prior to a certain number of days following the day of departure from the point of origin;
5. a minimum price per seat be charged for charter transportation (floor price rule); and
6. Canadian air carriers be given the right of first refusal in respect of fifth freedom entity charter flights proposed to be operated by non‑Canadian air carriers.

2. In respect of international entity charter flights, the provisions of Part III of the ATR that:

1. restrict the number of charterers to one;
2. grant Canadian air carriers the right of first refusal in respect of fifth freedom entity charter flights proposed to be operated by non‑Canadian air carriers;
3. require that an affidavit of the charterer be filed with the Agency verifying the information set out in paragraph 34(1)(c) of the ATR; and
4. require tariffs filed with the Agency to include rates to be charged for the charter of aircraft in respect of entity passenger charters.

Terms and Conditions of Exemption Order

1. Not more than three charterers will be permitted for entity passenger charters.
2. The entire capacity of an aircraft must be chartered.
3. The direct sale of charter seats by the Licensee to the public is prohibited.
4. Advance payments made for charter transportation shall be protected in accordance with the ATR.
5. The Passenger Policy envisages that foreign charter carriers should have the ability to operate under the same conditions as Canadian charter carriers, provided acceptable reciprocity exists for Canadian carriers.