Decision No. 649-A-2007

December 24, 2007

File Nos. M4210/A328-4-16
M4820-S5

Air Transat A.T. Inc. carrying on business as Air Transat (hereinafter Air Transat) has applied to the Canadian Transportation Agency (hereinafter the Agency) for the authority set out in the title. The application was received on October 25, 2007 and was amended on November 22, 2007.

Under Licence No. 060020, Air Transat is authorized to operate a scheduled international service, large aircraft, in accordance with the Agreement between the Government of Canada and the Government of Spain on Air Transport, signed on September 15, 1988 (hereinafter the Agreement).

Condition No. 1 of Licence No. 060020 states:

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

Condition No. 2 of Licence No. 060020 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 between Canada and Spain.

Air Transat is requesting extra-bilateral authority to serve the additional point Malaga. Under the terms of the Agreement, Canadian designated airlines are authorized to serve Madrid, plus three additional points in Spain. The three additional points named by Canada are Barcelona, Palma de Mallorca and Vitoria. Malaga is therefore not provided for in the Agreement.

Due to the extra-bilateral nature of Air Transat's requested authority, the Agency, by letter dated October 25, 2007, gave notice of the application to parties that may have an interest, namely Air Canada, the other Canadian air carrier designated to serve Spain, and Aéroports de Montréal (hereinafter ADM).

An intervention in support of the application was received from ADM. ADM is very supportive of Air Transat's proposed service as it will provide a new and convenient non-stop link between Spain and the Montréal region for the first time during the winter season. ADM maintains that the new service will have a positive impact on tourism, as well as strengthen trade between Canada and Spain.

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 has reviewed and considered the application and the intervention filed in support thereof by ADM.

In light of the foregoing, the Agency is satisfied that Air Transat's proposed service would be beneficial to the travelling public and the communities involved.

Accordingly, the Agency, pursuant to subsection 78(2) of the CTA, hereby varies Condition Nos. 1 and 2 of Licence No. 060020 to the extent necessary to permit Air Transat to operate a once weekly scheduled international passenger service on the routing Montréal - Malaga - Paris - Montréal, from January 15 to April 23, 2008, subject to the following conditions:

1. No local traffic may be carried between Malaga and Paris.
2. Stopover rights shall not be exercised at Malaga.

In all other respects, the service shall be operated in accordance with the Agreement.

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

This Decision shall form part of Licence No. 060020 and shall remain affixed thereto as long as this Decision is in force.

Members

• Raymon J. Kaduck
• J. Mark MacKeigan