Decision No. 504-A-1996

September 20, 1996

File No. M4211/N79-6-2

Docket No. 962321

Northwest Airlines, Inc. (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 September 13, 1996.

The applicant was designated by Diplomatic Note No. 319 dated September 12, 1996 by the Government of the United States of America, pursuant to the provisions of the Air Transport Agreement between the Government of Canada and the Government of the United States of America dated February 24, 1995 (hereinafter the Agreement), to operate scheduled services between Los Angeles and Vancouver.

The applicant has also filed material establishing that it meets the requirements set out in section 69 of the Canada Transportation Act, S.C., 1996, c. 10 (hereinafter the CTA) and an affidavit attesting that within the preceding twelve months, or since July 1, 1996, whichever is the shorter period, the applicant did not sell, cause to be sold or publicly offer for sale in Canada an air service unless it held a licence in respect of that service. The applicant has also undertaken in respect of the air service 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 after July 1, 1996.

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

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, usually in the form of an Operating Certificate, 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 serve the points Los Angeles, California, U.S.A., and Vancouver, British Columbia, Canada.
2. While operating the scheduled international service authorized herein, the Licensee is authorized to provide passenger/combination services.
3. The operation of the scheduled international service authorized herein shall be conducted subject to the provisions of the Agreement and to any arrangements related thereto as may be agreed to between Canada and the United States of America.
4. Unless terminated at an earlier date in accordance with the Act 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.