Decision No. 584-A-2006

With Decision No. 164-A-2007

October 25, 2006

File No. M4212/M22-4

Martinair Holland N.V. (hereinafter Martinair) has applied to the Canadian Transportation Agency (hereinafter the Agency) for the authority set out in the title. The application was received on September 14, 2006.

The Agency notes that this application is a renewal of the approval granted by Decision No. 187-A-2006 dated March 27, 2006.

In its application, Martinair states that it intends to operate either MD11 or Boeing 747 dedicated cargo aircraft on Amsterdam-Toronto-Los Angeles-Atlanta or Seattle-Amsterdam routings twice weekly up to the end of the 2006/2007 IATA winter season, specifically March 24, 2007.

Under Licence No. 975115, Martinair is authorized to operate a scheduled international service between the Netherlands and Canada in accordance with the Agreement between the Government of Canada and the Government of the Kingdom of the Netherlands relating to Air Transport signed on June 2, 1989 (hereinafter the Agreement).

Condition No. 1 of Licence No. 975115 states:

The Licensee is authorized to operate the route(s) set out in the Agreement.

Condition No. 2 of Licence No. 975115 states:

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 Kingdom of the Netherlands.

Route 1 of the Agreement provides for the operation of services beyond Montréal, but not beyond Toronto, on the route Netherlands-Montréal-New York, New York-points in the United States of America to be named by the Netherlands - Mexico City and vice versa. Further, the Agreement provides for the exercise of fifth freedom rights on Route 1 between Montréal and Houston and between Montréal and Orlando. Route 2 provides for the operation of services between the Netherlands and Montréal, Toronto, Halifax and/or Ottawa and vice versa but does not provide for services beyond Toronto.

The Agreement does not authorize an airline designated by the Government of the Kingdom of the Netherlands to provide a scheduled international all-cargo air service to Toronto in combination with points in third countries.

The Agency has reviewed and considered the application and the material filed in support thereof.

The Agency notes that there is no provision in the Agreement that would permit the operation of the service proposed by Martinair. Nonetheless, the Agency may grant temporary authority pursuant to subsection 78(2) of the Canada Transportation Act (hereinafter the CTA) for a service which is not permitted in a bilateral air transport agreement.

The Agency notes that the Canadian air carriers designated to serve the Netherlands were advised of the application and they do not oppose the application. Moreover, the proposed service could be of benefit to shippers and consumers.

Accordingly, the Agency, pursuant to subsection 78(2) of the CTA, hereby varies Conditions Nos. 1 and 2 of Licence No. 975115 to the extent necessary to permit Martinair to operate up to two all-cargo flights per week from October 29, 2006 to March 24, 2007 on the routing Amsterdam to Toronto and beyond Toronto to points in the United States of America, without fifth freedom traffic rights beyond Toronto, and return to Amsterdam.

In all other respects, the service shall be operated in accordance with the Agreement and any applicable arrangements as may be agreed to between Canada and the Kingdom of the Netherlands.

The authority granted herein does not exempt Martinair from the requirements of other legislative acts or regulations, including those of Transport Canada.

This Decision shall form part of Licence No. 975115 and shall remain affixed thereto as long as the said Decision is in force.

Members

• Mary-Jane Bennett
• Baljinder Gill