Decision No. 451-A-2010

October 29, 2010

File No. M4212/P106-4

Pakistan International Airlines Corporation (Pakistan International) has applied to the Canadian Transportation Agency (Agency) for approval to permit it to offer up to 1,000 seats per week while operating air services between Pakistan and Canada and for extra-bilateral authority to operate a third weekly flight to Toronto, Ontario, Canada, without including services at Montréal, Quebec, Canada, from October 31, 2010 to October 30, 2011.

Pakistan International is licensed to operate a scheduled international service in accordance with the Air Transport Agreement between the Government of Canada and the Government of the Islamic Republic of Pakistan signed on January 15, 1996 (Agreement).

Under the terms of the Agreement, Pakistan International may operate, among others, up to three flights per week between Pakistan and Canada, providing up to 685 seats per week in each direction, subject to the carrier including services at Montréal when operating a third flight to Toronto.

Pursuant to paragraph 5 of Article XI of the Agreement, the capacity to be provided on the specified routes shall be agreed between the designated air carriers, subject to the approval of the aeronautical authorities.

There is no provision in the Agreement to permit the operation of the third weekly flight without including services at Montréal.

Therefore, Pakistan International also requires extra-bilateral authority and its licence must be varied to allow for the provision of services not permitted under the Agreement.

Pakistan International states that there continues to be high demand for both passenger and cargo services. Currently, the flights are operated at near capacity and there is an increased demand to meet the ongoing need for relief work and relief goods as a result of the massive flooding in Pakistan this year. Pakistan International submits that it wishes permission to continue operating the third weekly direct flight with additional capacity for a full year.

On October 5, 2010, Air Canada, the Canadian designated carrier for air services between Canada and Pakistan, indicated its agreement with the proposed additional capacity and extra-bilateral authority for a period of one year.

The Agency has considered the application and the material in support. In light of the reasons given and Air Canada's support, the Agency is of the opinion that a temporary increase in capacity and temporary authority to operate a third weekly flight without including services at Montréal would be appropriate.

Accordingly, pursuant to section 77 of the CTA and as provided for in the Agreement, the Agency authorizes Pakistan International to provide up to 1,000 seats per week in each direction between Canada and Pakistan, from October 31, 2010 to October 30, 2011.

In addition, the Agency, pursuant to subsection 78(2) of the CTA, varies Pakistan International's licence to the extent necessary to permit it to operate a third weekly flight between Pakistan and Toronto without including services at Montréal, from October 31, 2010 to October 30, 2011, subject to the following condition:

No fifth freedom traffic may be carried between Europe and Toronto on the third flight.

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

This authority does not exempt Pakistan International from the requirements of other legislative acts or regulations, including those of Transport Canada.

Members

• Raymon J. Kaduck
• Jean-Denis Pelletier, P. Eng.