Decision No. 581-A-1998

November 27, 1998

File No. M4210/A74-4-35

Docket Nos. 980974
980984

Air Canada (hereinafter the applicant) has applied to the Canadian Transportation Agency for a licence to operate the service set out in the title. The application was received on October 28, 1998.

By letter dated November 1, 1998, the Minister of Transport designated the applicant as eligible to hold a scheduled international licence pursuant to subsection 69(2) of the Canada Transportation Act (hereinafter the CTA). This designation is solely for the applicant to code share on the flights of other airlines into and out of Mexico.

The applicant filed an affidavit attesting that within the twelve months preceding the filing of the application it did not contravene section 59 of the CTA in that it has not sold, caused to be sold or publicly offered for sale in Canada transportation in respect of the applied for air service without holding the required licence. 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 within the preceding twelve months.

The Agency has reviewed the application and is satisfied that the applicant meets the requirements of subsection 69(1) of the CTA. The Agency is also satisfied that the pertinent terms and conditions of the Agreement between the Government of Canada and the Government of the United Mexican States on Air Transport signed on December 21, 1961 (hereinafter the Agreement) have been complied with.

Accordingly, the Agency will issue to the applicant a licence to operate a scheduled international service, medium aircraft and a scheduled international service, large aircraft.

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 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. Subject to any approval that is required pursuant to section 60 of the CTA and any applicable provisions of the ATR, the Licensee is authorized to operate the route set out in Section 1 of Part (A) Route Schedule for Code-Share Services of the Memorandum of Understanding between the Government of Canada and the Government of the United Mexican States which provisionally entered into force on October 15, 1998. Operation to (a) specified point(s) in a third country on the route set out in the said Memorandum is subject to the Licensee holding another scheduled international licence issued by the Agency that permits the Licensee to operate a scheduled international service to and/or from the respective third country(ies) concerned.
2. The scheduled international service authorized herein must be operated via an intermediate point until June 2, 1999.
3. 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 Mexico.
4. 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.