Decision No. 25-A-1997

January 30, 1997

File No. M4835-2-7

Philippine Airlines, Inc. (hereinafter PAL), on behalf of itself and World Airways, Inc. (hereinafter World), has applied to the Canadian Transportation Agency (hereinafter the Agency) for the approval set out in the title. The application was received on September 4, 1996.

Under Licence No. 961031, PAL is authorized to operate a scheduled international service pursuant to the Agreement between the Government of Canada and the Government of the Republic of the Philippines on Air Transport initialled ad referendum on September 11, 1996.

On July 1, 1996, the Canada Transportation Act, S.C., 1996, c. 10 (hereinafter the CTA) came into effect. Section 60 of the CTA and sections 8.2 to 8.5 of the Air Transportation Regulations, SOR/88-58, as amended (hereinafter the ATR) now apply to the provision of aircraft with flight crew. In accordance with subsection 8.2(1) of the ATR, Agency approval of the application is required.

The Agency notes that the application was not filed at least 45 days before the first planned flight, as required by subsection 8.2(2) of the ATR. However, in this instance, the Agency is of the opinion that compliance by PAL and World with subsection 8.2(2) of the ATR is unnecessary, undesirable or impractical. Accordingly, pursuant to paragraph 80(1)(c) of the CTA, the Agency hereby orders that PAL and World be exempted from the application of subsection 8.2(2) of the ATR.

The Agency has reviewed the application and the material filed in support thereof and is satisfied that PAL and World meet the requirements of section 8.2 of the ATR. Accordingly, pursuant to paragraph 60(1)(b) of the CTA and section 8.2 of the ATR, the Agency hereby approves the use by PAL of aircraft and flight crew provided by World, and the provision by World of such aircraft and flight crew to PAL, to permit PAL to operate scheduled international services on the route Manila-Vancouver-Newark. This approval is granted for the period commencing September 19, 1996 and ending November 15, 1997, subject to the following conditions:

1. Air services shall be operated under PAL's scheduled international licence.
2. Commercial control of the flights shall be maintained by PAL while World shall retain operational control of the flights and shall receive payment based on the rental of aircraft and crew, not on the basis of volume of traffic carried or other revenue sharing formula.

PAL and World are reminded of the continuing requirement to comply with sections 8.2 and 8.5 of the ATR.

It should be noted that the approval granted herein does not exempt PAL and World from the requirements of other legislative acts or regulations, including those of Transport Canada.

This Decision takes effect on September 18, 1996, the date on which its content was communicated by letter to the parties of record.