Decision No. 618-A-2007

December 7, 2007

File No. M4835-16-3

Cubana de Aviación S.A. (hereinafter Cubana), on behalf of itself and TACA International Airlines S.A. carrying on business as TACA Airlines (hereinafter TACA), has applied to the Canadian Transportation Agency (hereinafter the Agency) for the approval set out in the title. The application was received on November 15, 2007.

Cubana has 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.

The Agency notes that this application is a renewal of the approval granted by Decision No. 682-A-2006 dated December 11, 2006.

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 (hereinafter the Agreement).

By letter dated November 19, 2007, 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 and no objections were received.

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 Cubana 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 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 thereof 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 that a term of one year would be appropriate.

Accordingly, the Agency, pursuant to paragraph 60(1)(b) of the CTA and section 8.2 of the ATR, hereby 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 (excluding all-cargo international services) on licensed routes between Cuba and Canada using aircraft and flight crew provided by TACA, from December 9, 2007 to December 8, 2008, 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 herein 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 herein does not exempt Cubana and TACA from the requirements of other legislative acts or regulations, including those of Transport Canada.

Members

• Beaton Tulk
• J. Mark MacKeigan