Decision No. 542-A-2008

October 23, 2008

File No. M4210/A74-4-65

Air Canada has applied to the Canadian Transportation Agency (the Agency) for a licence to operate the services set out in the title.

Under Licence No. 030161, Air Canada is authorized to operate a scheduled international service, medium aircraft, and a scheduled international service, large aircraft, between Canada and Grenada.

Condition No. 2 of Licence No. 030161 states:

Unless terminated at an earlier date in accordance with the CTA, this licence shall terminate on October 31, 2008.

In its request, Air Canada states that it is applying for an extension of the authority set out in Licence No. 030161 or issuance of a new scheduled international licence for a period of one year or such period that is consistent with the Agency's policy on granting extra-bilateral authority.

The authority requested by Air Canada is extra-bilateral because there is no agreement or arrangement between the Government of Canada and the Government of Grenada which provides for the operation by a Canadian air carrier of a scheduled international air service between Canada and Grenada.

Pursuant to subsection 78(2) of the Canada Transportation Act (the CTA), the Agency may issue a licence, on a temporary basis, for international air services that are not permitted in an agreement, a convention or an arrangement relating to civil aviation to which Canada is a party.

The Minister of Transport has designated Air Canada as eligible to hold a scheduled international licence between Canada and Grenada.

Prior to issuing a licence, the Agency must be satisfied that the applicant holds a valid Canadian aviation document and has the prescribed liability insurance coverage. The Agency has considered the material on file and is satisfied that Air Canada meets those requirements.

The Agency notes that by Order No. 2007-A-497 dated November 6, 2007, Air Canada was exempted from the application of section 59 of the CTA, thereby permitting it to sell, cause to be sold or publicly offer for sale in Canada scheduled international services between Canada and Grenada for travel beyond October 31, 2008, without holding the required licence.

The Agency finds it appropriate to grant the authority until October 31, 2009.

Accordingly, pursuant to subsection 78(2) of the CTA, the Agency hereby amends Condition Nos. 1 and 2 of temporary Licence No. 030161 to read:

1. The Licensee is authorized to operate international air services on a scheduled basis between Canada and Grenada.
2. Unless terminated at an earlier date in accordance with the CTA, this licence shall terminate on October 31, 2009.

A new document of licence bearing Licence No. 030161 will be issued to Air Canada.

Any similar requests for a subsequent authority shall be submitted to the Agency for approval by no later than October 1, 2009.

Members

• John Scott
• J. Mark MacKeigan