Decision No. 422-A-2007

August 28, 2007

File No. M4210/A74-4-64

Air Canada has applied to the Canadian Transportation Agency (hereinafter the Agency) for the authority set out in the title. The application was received on August 22, 2007.

The Agency notes that part of this application is for a renewal of the authority granted by Decision No. 104-A-2007 dated March 7, 2007.

Under Licence No. 030115, Air Canada is authorized to operate a scheduled international service in accordance with the Air Transport Agreement between the Government of Canada and the Government of the Republic of Cuba, signed on February 12, 1998 (hereinafter the Agreement).

Condition No. 1 of Licence No. 030115 states:

The Licensee is authorized to operate the route(s) set out in the Agreement.

Under the terms of the Agreement, Air Canada may serve Havana, Varadero and two changeable points in Cuba to be named by Canada. Holguin and Cayo Coco have been named; therefore, Cayo Largo del Sur and Santa Clara are not permitted under the Agreement.

The Agency may grant temporary authority pursuant to subsection 78(2) of the Canada Transportation Act (hereinafter the CTA) for a service which is not permitted in a bilateral air transport agreement. Air Canada did not specify the period of time for which authority is requested. The Agency is of the opinion that it would be appropriate in this case to grant temporary authority for the International Air Transport Association (IATA) 2007/2008 winter season.

The Agency has reviewed and considered the application and the material filed in support thereof.

Accordingly, the Agency, pursuant to subsection 78(2) of the CTA, hereby varies Condition No. 1 of Licence No. 030115 to the extent necessary to permit Air Canada to serve the additional points Cayo Largo del Sur and Santa Clara from October 28, 2007 to March 29, 2008.

In all other respects, the services shall be operated in accordance with the Agreement.

The authority granted herein does not exempt Air Canada from the requirements of other legislative acts or regulations, including those of Transport Canada.

This Decision shall form part of Licence No. 030115 and shall remain affixed thereto as long as this Decision is in force.

Members

• Beaton Tulk
• J. Mark MacKeigan