Decision No. 534-A-2006

October 2, 2006

File No. M4835-16

Flair Airlines Ltd. (hereinafter Flair Airlines) on behalf of itself and Cubana de Aviacion S.A., (hereinafter Cubana) has applied to the Canadian Transportation Agency (hereinafter the Agency) for the approval set out in the title. The application was received on September 21, 2006.

The Agency notes that this application is a renewal of the approval granted by Decision No. 224-A-2006 dated April 7, 2006.

Under Licence No. 975160, Cubana is authorized to operate a scheduled international service between Cuba and Canada in accordance with the Air Transport Agreement between the Government of Canada and the Government of the Republic of Cuba signed on February 12, 1998.

The Agency notes that the application was filed less than 45 days before the first planned flight as required by subsection 8.2(2) of the Air Transportation Regulations (hereinafter the ATR), and therefore an exemption from the application of this provision is necessary. The Agency is of the opinion that compliance with subsection 8.2(2) of the ATR is impractical in this case. Accordingly, the Agency, pursuant to paragraph 80(l)(c) of the Canada Transportation Act (hereinafter the CTA), hereby orders that Flair Airlines 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 the application 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 Cubana of aircraft and flight crew provided by Flair Airlines and the provision by Flair Airlines of such aircraft and flight crew to Cubana to permit Cubana to provide its scheduled international all-cargo service between Cuba and Canada using aircraft with flight crew provided by Flair Airlines, from the date of this Decision to January 1, 2007, subject to the following conditions:

1. Cubana shall continue to hold the required licence authority.
2. The air service approved herein shall only be provided as long as an agreement between Cubana and Flair Airlines providing for such services remains in effect.
3. Commercial control of the flights shall be maintained by Cubana. Flair Airlines 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.

Cubana and Flair Airlines are reminded of the continuing requirement to comply with sections 8.2 and 8.5 of the ATR.

Cubana and Flair Airlines are further reminded to provide the Agency with a copy of any new agreement or any amendments to their wet lease agreement, including any new or amended annex, without delay.

The approval granted herein does not exempt Cubana and Flair Airlines from the requirements of other legislative acts or regulations, including those of Transport Canada.

Members

• Beaton Tulk
• Baljinder Gill