Decision No. 61-A-2011

February 28, 2011

APPLICATION by Cubana de Aviacion S.A., on behalf of itself and TACA International Airlines, S.A. carrying on business as TACA Airlines, for an approval pursuant to section 60 of the Canada Transportation Act, S.C., 1996, c. 10, as amended, and section 8.2 of the Air Transportation Regulations, SOR/88-58, as amended.

File No. M4835-16-3

Cubana de Aviacion 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 (Agency) for an approval to permit Cubana to provide its scheduled international service between Cuba and Canada using aircraft and flight crew provided by TACA, for a period of one year or such longer period as may be authorized by the Agency, commencing on March 1, 2011.

Cubana has also requested an exemption from the application of subsection 8.2(2) of the Air Transportation Regulations (ATR), which requires the filing of an application for an approval at least 45 days before the first planned flight. The Agency finds that compliance 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 (CTA), exempts Cubana from the application of subsection 8.2(2) of the ATR.

Cubana is licensed 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 (Agreement).

The Agency has considered the application and the material in support and is satisfied that it meets the remaining requirements of section 8.2 of the ATR.

With respect to the duration of the approval requested, the Agency considers it appropriate to grant the approval for a period of one year.

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, to permit Cubana to provide its scheduled international service on licensed routes between Cuba and Canada using aircraft and flight crew provided by TACA, from March 1, 2011 to February 29, 2012.

This approval is subject to the following conditions:

1. Cubana shall continue to hold the valid 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. Cubana and TACA shall continue to comply with the insurance requirements set out in subsections 8.2(4), 8.2(5) and 8.2(6) of the ATR.
4. Cubana shall continue to comply with the public disclosure requirements set out in section 8.5 of the ATR.
5. Cubana and TACA shall advise the Agency in advance of any changes to the information provided in support of the application.

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

Members

• J. Mark MacKeigan
• Raymon J. Kaduck