Decision No. 37-A-2005

January 28, 2005

File No. M4212/A1005-4

Aerovias Nacionales de Colombia S.A. carrying on business as Avianca (hereinafter the applicant) has applied to the Canadian Transportation Agency (hereinafter the Agency) for a licence to operate the service set out in the title. The application was received on January 3, 2005 and was complete and ready for processing on January 28, 2005.

By letter dated January 20, 2005, the applicant has been designated by the Government of Colombia to conduct international air transportation between Colombia and Canada.

The Agency has reviewed and considered the application and is satisfied that the applicant meets the requirements of subparagraphs 69(1)(a)(ii) and (iii) of the CTA. The applicant does not, however, meet the requirement of subparagraph 69(1)(a)(i) of the CTA which refers to paragraph 69(3)(a), which requires that a carrier must be designated pursuant to an agreement or an arrangement.

In this regard, the Agency notes that pursuant to subsection 78(2) of the Canada Transportation Act (hereinafter the CTA), the Agency may issue a licence, on a temporary basis, for international air services that are not permitted in an agreement, a convention or an arrangement relating to civil aviation to which Canada is a party.

With respect to the requirement of paragraph 69(1)(b) of the CTA, that the Agency be satisfied that the applicant has not contravened section 59 of the CTA, the Agency notes that by Order No. 2004-A-554 dated December 10, 2004, the applicant was granted an exemption from section 59 of the CTA.

Concerning the duration of the subject authority, the Agency considers it appropriate to grant the authority until October 25, 2005.

Accordingly, pursuant to subsections 69(1) and 78(2) of the CTA, the Agency will issue to the applicant a licence to operate a scheduled international service, limited to three (3) flights per week, between Colombia and Canada.

The licence to be issued pursuant to this Decision shall be subject, in addition to the conditions prescribed by the Air Transportation Regulations, SOR/88-58, as amended (hereinafter the ATR), to the requirements to hold a Canadian aviation document issued by the Minister of Transport and to have prescribed liability insurance coverage as set out in section 7 of the ATR, and to the following terms and conditions:

1. The Licensee is authorized to operate a scheduled international service, limited to three (3) flights per week, between Colombia and Canada.
2. Unless terminated at an earlier date in accordance with the CTA, this licence shall terminate on October 25, 2005.

Any similar requests for a subsequent authority shall be submitted to the Agency for approval by no later than October 1, 2005.

Should the applicant intend to sell, cause to be sold or publicly offer for sale in Canada a scheduled international service for transportation authorized by this licence to be provided beyond the termination date as set out in Condition No. 2 of the licence, it must file an application for and be granted an exemption from section 59 of the CTA by the Agency.