Decision No. 47-A-2001

January 31, 2001

File No. M4210/A74-2

Docket Nos. 010062
010063

Air Canada has applied to the Canadian Transportation Agency (hereinafter the Agency) for the authority and the exemption set out in the title. The application was received on January 11, 2001.

Under Licence No. 977155, Air Canada is authorized to operate a non-scheduled international service, medium aircraft and a non-scheduled international service, large aircraft, to transport traffic on a charter basis between Canada and any other country.

Air Canada requested the Agency to vary, on a temporary basis, the terms and conditions of its non-scheduled international licence so as to permit it to transport passengers at a fare per person. This request was made in order to allow it to operate flights between February 9 and 18, 2001 on the routing Vancouver/Beijing, Beijing/ Xian, Xian/Beijing, Beijing/Shanghai, Shanghai/ Hong Kong and Hong Kong/Vancouver utilizing a Boeing 747-400 aircraft on behalf of the Government of Canada, Department of Foreign Affairs and International Trade who will obtain payment for traffic carried at a toll per unit. The purpose of these flights is to transport the Prime Minister of Canada, provincial and territorial premiers and representatives of Canadian business and industry to China. A participation fee is being charged by the Government of Canada. Air Canada has also requested an exemption from the application of subsections 110(4) and (5) of the Air Transportation Regulations (hereinafter the ATR), in order to allow it to deviate from the tolls and conditions of carriage set out in its tariff on file with the Agency.

The Agency has considered Air Canada's request and, pursuant to subsection 74(1) of the Canada Transportation Act, S.C., 1996, c. 10 (hereinafter the CTA), hereby varies, on an exceptional basis, the terms and conditions of Licence No. 977155 by adding the following condition effective February 9 through 18, 2001 for the above-noted flights in order that passengers may be carried on a unit toll basis:

The Licensee is authorized, between February 9 and 18, 2001 inclusively, to transport passengers and their baggage at a toll per unit on the routing Vancouver/Beijing, Beijing/ Xian, Xian/Beijing, Beijing/ Shanghai, Shanghai/Hong Kong and Hong Kong/Vancouver consistent with traffic requirements and operating conditions on behalf of the Department of Foreign Affairs and International Trade.

Moreover, the Agency is of the opinion that compliance by Air Canada with subsections 110(4) and (5) of the ATR is unnecessary in this case. Accordingly, pursuant to paragraph 80(1)(c) of the CTA, the Agency hereby exempts Air Canada from the application of subsections 110(4) and (5) of the ATR.

This Decision shall form part of Licence No. 977155 and shall remain affixed thereto as long as the said Decision is in force.