Decision No. 609-A-2008

December 8, 2008

File No. M4835-16-3

Cubana de Aviación S.A. (Cubana), on behalf of itself and TACA International Airlines S.A. carrying on business as TACA Airlines (TACA), has applied to the Canadian Transportation Agency (the Agency) for the approval set out in the title. The application was complete on November 27, 2008.

The Agency notes that this application is a renewal of the approval granted by Decision No. 618-A-2007 dated December 7, 2007.

Under Licence No. 975160, Cubana is authorized to operate a scheduled international service in accordance with the Air Transport Agreement between the Government of Canada and the Government of the Republic of Cuba signed on February 12, 1998.

By letter dated December 1, 2008, Air Transat A.T. Inc. carrying on business as Air Transat and Air Canada, the Canadian air carriers designated to serve Cuba, were advised of the application. No objections were received.

The Agency notes that the application was filed less than 45 days before the first planned flight, as required by subsection 8.2(2) of the Air Transportation Regulations (the ATR), and therefore an exemption from the application of this provision is necessary. The Agency is of the opinion that compliance with subsection 8.2(2) of the ATR is impractical in this case. Accordingly, pursuant to paragraph 80(l)(c) of the Canada Transportation Act (the CTA), the Agency orders that Cubana be exempt from the application of subsection 8.2(2) of the ATR.

The Agency has reviewed and considered the application and the material filed in support and is satisfied that it meets the requirements of 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, approves the use by Cubana of aircraft and flight crew provided by TACA, and the provision by TACA of such aircraft and flight crew to Cubana, in order to permit Cubana to provide its scheduled international service (excluding all-cargo services) between Cuba and Canada using aircraft and flight crew provided by TACA, from December 9, 2008 to December 8, 2009, subject to the following conditions:

1. Cubana shall continue to hold the required licence authority.
2. Commercial control of the flights shall be maintained by Cubana. TACA shall maintain operational control of the flights and shall receive payment based on the rental of aircraft and crew and not on the basis of the volume of traffic carried or other revenue-sharing formula.
3. The air service approved shall only be provided as long as an Aircraft Leasing Agreement [Contrato de Arrendamiento A.C.M.I., (Fletamento) de Aeronave] providing for such services remains in effect.

Cubana and TACA are reminded to advise the Agency in advance of any changes to the information provided in support of the subject application.

Cubana and TACA are further reminded of the continuing requirement to comply with sections 8.2 and 8.5 of the ATR.

The approval granted does not exempt Cubana and TACA from the requirements of other legislative acts or regulations, including those of Transport Canada.

Members

• Raymon J. Kaduck
• Jean-Denis Pelletier, ing./P. Eng.