Decision No. 588-A-1998

December 2, 1998

Docket No. M4820-S5

Atlas Air and Iberia have applied to the Canadian Transportation Agency (hereinafter the Agency) for the approval set out in the title. The applications were received on November 27 and December 1, 1998.

Atlas Air and Iberia have also requested an exemption from the application of subsection 8.2(2) of the Air Transportation Regulations (hereinafter the ATR), which requires the filing of an application for an approval at least 45 days before the first planned flight.

Under Licence No. 975112, Iberia is authorized to operate a scheduled international service between Canada and Spain in accordance with the Agreement between the Government of Canada and the Government of the Spain signed on September 15, 1998.

Notice of the application was given to interested parties and no interventions were filed.

With respect to the request for an exemption from the application of subsection 8.2(2) of the ATR, the Agency has considered the request and is of the opinion that compliance by Atlas Air and Iberia with subsection 8.2(2) of the ATR is impractical in this case. Accordingly, the Agency, pursuant to paragraph 80(1)(c) of the Canada Transportation Act (hereinafter the CTA), hereby orders that Atlas Air and Iberia be exempt from the application of subsection 8.2(2) of the ATR.

The Agency has reviewed and considered the applications and the material filed in support thereof and is satisfied that they meet the remaining requirements set out in 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 Iberia of aircraft with flight crew belonging to Atlas Air, and the provision by Atlas Air of such aircraft with flight crew to Iberia, to permit Iberia to provide its once weekly scheduled international all-cargo service between Canada and Spain from December 2, 1998 to March 24, 1999, subject to the following conditions:

1. Air services shall be operated under the scheduled international licence of Iberia (Licence No. 975112).
2. Commercial control of the flights shall be maintained by Iberia. All documentation shall clearly indicate that the service is provided by Iberia.
3. Operational control of the flights shall be maintained by Atlas Air which shall receive payment based on the rental of aircraft and crew and not on the basis of the volume of traffic carried.
4. Iberia shall apply its published tariffs, on file with the Agency and in effect, to the carriage of its traffic.

Iberia and Atlas Air are reminded of the continuing requirement to comply with sections 8.2 and 8.5 of the ATR.

The approval granted herein does not exempt Iberia and Atlas Air from the requirements of other legislative acts or regulations, including those of Transport Canada.