Decision No. 231-A-1989

May 5, 1989

File No. M5050-U1

United Parcel Service Company (hereinafter the applicant) has applied to the National Transportation Agency for the exemption set out in the title.

Under Licence No. 880730, the applicant is authorized to operate a Class 9-4 Charter non-scheduled international service to transport traffic between points in Canada and points in the United States of America using aircraft in excess of 35,000 pounds maximum certificated take-off weight;

By Order No. 1989-A-14 dated January 20, 1989, the applicant was granted an exemption pursuant to paragraph 70(1)(c) of the National Transportation Act, 1987, S.C. 1987, c. 34 from the requirements of paragraph 20(a) of the Air Transportation Regulations, for the chartering of its Groups F, G and H aircraft to UPS Worldwide Forwarding Inc. for the carriage of transborder courier traffic between the points Hamilton, Ontario, Canada and Louisville, Kentucky, U.S.A. and the points Hamilton, Ontario, Canada and Buffalo, New York, U.S.A., on an interim ex parte basis, pursuant to subsection 40(3) of the National Transportation Act, 1987, until such time as the Agency heard and rendered a decision on its application.

By letter dated January 25, 1989, which enclosed a copy of Order No. 1989-A-14, all licensees that operate Class 9-4 Charter non-scheduled international services using fixed wing aircraft in Group E or larger were advised of the interim ex parte order and were given notice of the application. No interventions opposing the granting of the application were filed with the Agency.

The Agency has considered the application and the material in support thereof and notes that the application was unopposed.

The Agency notes the particular and unique requirements necessary to satisfy a single customer such as UPS Worldwide Forwarding Inc. as well as that such requirements are not compatible with obligations under a scheduled international licence to serve the public in general and serve points in accordance with a service schedule at a toll per unit of traffic. Accordingly, the Agency is of the opinion that compliance by the applicant with the requirements of paragraph 20(a) of the Air Transportation Regulations for the chartering of its Groups F, G and H aircraft to UPS Worldwide Forwarding Inc. is unnecessary, undesirable and impractical. The application is hereby approved.

United Parcel Service Company is hereby exempted from complying with the requirements set out in paragraph 20(a) of the Air Transportation Regulations for a period of one year from the date of this Decision, subject to the following condition:

United Parcel Service Company is required to file not less than two working days prior to the commencement of the flight or series of flights charter documentation for all Canadian originating departures, as set out in Division III of the Air Transportation Regulations, as applicable, and shall notify the Agency of all U.S. originating flights at least 48 hours prior to departure pursuant to the Canada U.S. Non-scheduled Air Service Agreement.

Should the applicant require an exemption from paragraph 20(a) of the Air Transportation Regulations for a longer period of time, an application must be filed with the Agency at least 60 days prior to the termination of this exemption.