Decision No. 441-A-2000

June 30, 2000

File No. M4210/A74-4-43

Docket No. 000569

Air Canada (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 June 12, 2000 and was complete and ready for processing on June 16, 2000.

By Diplomatic Note No. TD009 dated April 10, 2000, the Government of Canada, pursuant to the Civil Air Transport Agreement between the Government of Canada and the Government of the People's Republic of China signed on June 11, 1973 (hereinafter the Agreement), has designated the applicant to operate passenger/combination services on the agreed routes.

The applicant filed an affidavit attesting that within the twelve months preceding the filing of the application it did not contravene section 59 of the Canada Transportation Act (hereinafter the CTA) in that it has not sold, caused to be sold or publicly offered for sale in Canada transportation in respect of the applied for air services without holding the required licence. The applicant has also undertaken in respect of the air services applied for that it will not contravene section 59 of the CTA prior to the issuance of the applied for licence. The Agency is not aware of any evidence that the applicant contravened section 59 of the CTA within the preceding twelve months.

Pursuant to subsection 69(2) of the CTA, the Minister may, in writing to the Agency, designate any Canadian as eligible to hold a scheduled international licence and, while the designation remains in force, that Canadian remains so eligible.

The Agency notes that Diplomatic Note No. TD009 designates the applicant pursuant to the Agreement and pursuant to the Route Schedule provisionally applied by the Government of Canada and the Government of the People's Republic of China since October 23, 1997 to operate passenger/combination services on the agreed routes specified in the Route Schedule. Therefore, the Agency is satisfied that subsection 69(2) of the CTA has been substantially complied with, and pursuant to subsection 80(1) of the CTA, hereby grants an exemption from the requirement of a written designation by the Minister.

The Agency has reviewed the application and is satisfied that the applicant meets the remaining requirements of subsection 69(1) of the CTA. The Agency is also satisfied that the pertinent terms and conditions of the Agreement have been complied with.

Accordingly, the Agency will issue to the applicant a licence to operate a scheduled international service, large aircraft.

Pursuant to subsection 71(1) of the CTA, the Agency deems the terms and conditions set out below to be consistent with the Agreement and will therefore include them in the licence to be issued pursuant to this Decision.

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 to which the licence is made subject pursuant to subsection 71(1) of the CTA:

1. The Licensee is authorized to operate passenger/combination services on the agreed routes set out in the Route Schedule which has been provisionally applied by the Government of Canada and the Government of the People's Republic of China since October 23, 1997, as amended, operation to (a) specified point(s) in a third country on the agreed routes being subject to the Licensee holding another scheduled international licence issued by the Agency that permits the Licensee to operate a scheduled international service to and/or from the respective third country(ies) concerned.
2. The operation of the scheduled international service authorized herein shall be conducted subject to the provisions of the Agreement and to any applicable arrangements as may be agreed to between Canada and the People's Republic of China.
3. Unless terminated at an earlier date in accordance with the CTA or the Agreement, this licence shall terminate at the termination or expiration of the Agreement, or upon the effective date of any amendment to the Agreement which shall have the effect of eliminating the rights herein authorized.