Decision No. 506-A-1996

September 25, 1996

File No. M4212/P106-3

Docket No. 962094

By Diplomatic Note No. POL-3/25/88 dated March 22, 1988, the Government of the Islamic Republic of Pakistan designated Pakistan International Airlines Corporation pursuant to Article IV of the initialled, ad referendum, Agreement between the Government of Canada and the Government of the Islamic Republic of Pakistan on Air Services dated November 12, 1987 (hereinafter the Agreement).

On April 12, 1988, the National Transportation Agency issued a temporary authority to Pakistan International Airlines Corporation to operate a scheduled international service to transport passengers, cargo and mail, separately or in combination, on a route to be operated in either direction between Canada and the Islamic Republic of Pakistan subject to specific conditions.

The Agreement between the Government of Canada and the Government of the Islamic Republic of Pakistan on Air Transport was signed January 15, 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.

The Agency notes that since April 1988, the Licensee has operated the service under a temporary authority and is therefore satisfied that the applicant has not contravened section 59 of the CTA within the preceding twelve months.

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

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 operate the route(s) set out in the Agreement.
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 Islamic Republic of Pakistan.
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.
4. The Licensee may carry connecting international passengers between Mirabel Airport (Montréal) and Lester B. Pearson Airport (Toronto) in both directions, i.e. pick-up or set down at Mirabel Airport passenger traffic destined for or coming from Toronto, on the condition that the passenger is moving on a ticket providing for transportation on a journey (without stopover in Montréal) to or from a point outside the territory of Canada.