Decision No. 546-A-1996

October 31, 1996

File No. M4895/C14-1-30
Docket No. 962346

Canadian Airlines International Ltd. carrying on business under the firm name and style of either Canadian Airlines International or Canadi*n (The Company's symbol appears between the "i" and the "n" in the trade name.) (hereinafter the applicant) has applied to the Canadian Transportation Agency (hereinafter the Agency) for the extension set out in the title. The application was received on September 17, 1996.

Under Licence No. 910302 of the National Transportation Agency (hereinafter the NTA), the applicant is authorized to operate a scheduled international service on the route Vancouver/Taipei and beyond Taipei to Hong Kong. Condition No. 4 of Licence No. 910302 states:

The authority granted by this licence shall terminate on October 31, 1996. Any request for extension or amendment to this authority shall be submitted to the regulatory authorities for approval at least thirty (30) days in advance of the effective date of such extension or amendment.

The Agency has considered the application and material in support thereof. The Agency notes that the applicant must operate its scheduled international air service between Canada and Taiwan by maintaining a commercial agreement in joint venture, approved by the Agency, with Mandarin Airlines Ltd., in a manner consistent with the terms and conditions to the directive given to the NTA by letter dated December 4, 1990, by the Minister of Transport, pursuant to paragraph 86(1)(e) of the National Transportation Act, 1987, R.S.C., 1985, c. 28 (3rd Supp.) with the approval of the Governor in Council. Pursuant to this directive, the Minister of Transport directed the NTA to grant all necessary authorization to the applicant and a Taiwanese carrier to operate scheduled international air services between Canada and Taiwan pursuant to a commercial agreement in joint venture between the two air carriers. The Agency notes that there currently exists a commercial agreement in joint venture between Mandarin Airlines Ltd. and the applicant which was recently approved by the Agency.

In addition, the Agency is satisfied that the applicant meets the requirements set out in paragraph 69(1)(a) of the Canada Transportation Act, S.C., 1996, c. 10 (hereinafter the CTA).

Accordingly, pursuant to subsection 71(1) of the CTA, the Agency hereby amends Condition No. 4 of NTA Licence No. 910302 to read:

The authority granted by this licence shall terminate on April 30, 1997. Any request for extension or amendment to this authority shall be submitted to the regulatory authorities for approval at least thirty (30) days in advance of the effective date of such extension or amendment.

Accordingly, the Canadian Transportation Agency will issue to Canadian Airlines International Ltd. carrying on business under the firm name and style of either Canadian Airlines International or Canadi*n replacement Licence No. 965007 authorizing it to operate a scheduled international service, large aircraft.