Decision No. 503-A-2008

October 7, 2008

File No. M4835-60-1

Lineas Aereas Costarricenses S.A. carrying on business as LACSA (LACSA) and TACA International Airlines, S.A. carrying on business as TACA Airlines (TACA), have applied to the Canadian Transportation Agency (the Agency) for the approval set out in the title. The application was received on September 17, 2008 on the Agency's after-hours service.

LACSA and TACA also requested an exemption from the application of subsection 8.2(2) of the Air Transportation Regulations (the ATR), which requires the filing of an application for an approval at least 45 days before the first planned flight.

Under Licence No. 970075, LACSA is authorized to operate a scheduled international service in accordance with the Agreement between the Government of Canada and the Government of the Republic of Costa Rica on Air Transport initialled ad referendum on November 22, 1996.

Due to their imminent departure, the approval of the proposed flights from September 17 to 23, 2008 was dealt with on the Agency's after-hours service. The remainder of the flights will be dealt with separately by the Agency.

With respect to the request for an exemption from the application of subsection 8.2(2) of the ATR, the Agency has considered the request and is of the opinion that compliance by LACSA and TACA with subsection 8.2(2) of the ATR is impractical in this case.

Accordingly, the Agency, pursuant to paragraph 80(1)(c) of the Canada Transportation Act (the CTA), orders that LACSA and TACA be exempt from the application of subsection 8.2(2) of the ATR.

The Agency has reviewed and considered the application and the material filed in support thereof and is satisfied that it meets the remaining requirements of section 8.2 of the ATR.

Accordingly, the Agency, pursuant to paragraph 60(1)(b) of the CTA and section 8.2 of the ATR, hereby approves the use by LACSA of aircraft and flight crew provided by TACA, and the provision by TACA of such aircraft and flight crew to LACSA, in order to permit LACSA to provide its scheduled international service between Costa Rica and Canada using aircraft and flight crew provided by TACA, from September 17 to 23, 2008, subject to the following conditions:

1. LACSA shall continue to hold the required licence authority.
2. Commercial control of the flights shall be maintained by LACSA. TACA shall maintain operational control of the flights and shall receive payment based on the rental of aircraft and crew and not on the basis of the volume of traffic carried or other revenue-sharing formula.

This Decision takes effect as of September 17, 2008, the date on which it was communicated verbally to LACSA and TACA on the Agency's after-hours service.

Members

• Geoffrey C. Hare
• J. Mark MacKeigan