Decision No. 654-A-2007

December 28, 2007

File Nos. M4815-2-1/C180
M4815-12-1/C180

Cargolux Airlines International, S.A.(hereinafter Cargolux) has applied to the Canadian Transportation Agency (hereinafter the Agency) for the authorizations set out in the title. The applications were received on November 2 and 27, 2007.

In accordance with Canadian Government policy announced on August 6, 1982, the Minister of Transport directed the Air Transport Committee (hereinafter the Committee) of the Canadian Transport Commission to consider applications from foreign air carriers for authorizations to carry international cargo shipments to and from Mirabel International Airport coming from and destined to points outside the territory of Canada. The Committee was also directed to make any such authorization subject to the carrier continuing to meet its obligations to: 1) report traffic carried to and from Mirabel International Airport to the Committee in accordance with any requirements of the authorization; and 2) have sufficient insurance to satisfy the minimum requirements of the Air Carrier Regulations, C.R.C., 1978, c. 3 (hereinafter the ACR). The direction also required that the in-transit cargo be held in bond pending its onward transportation to its destination. Cargo of Canadian origin or destination may not be carried under this arrangement, unless a carrier is licensed to carry such cargo. In that case, a carrier may combine transshipped cargo with Canadian cargo on the same services.

In addition, on July 5, 2007, the Minister of Transport directed the Agency, pursuant to paragraph 76(1)(e) of the Canada Transportation Act, S.C., 1996, c. 10, as amended (hereinafter the CTA), to consider applications from Canadian and foreign air carriers for authorizations to carry international cargo shipments to and from Calgary International Airport coming from and destined to points outside the territory of Canada. These authorizations would carry an obligation to report traffic carried to and from Calgary International Airport in accordance with directions to be advised upon authorization and an obligation to carry insurance to the minimum requirements of the ATR. The in-transit cargo would be held in bond pending its onward transportation to its destination. Cargo of Canadian origin or destination may not be carried under this arrangement, unless a carrier is licensed to carry such cargo. In that case, a carrier may combine transshipped cargo with Canadian cargo on the same services.

The Agency notes that the CTA was enacted to, inter alia, continue the National Transportation Agency¹ as the Canadian Transportation Agency, as well as to revise the National Transportation Act, 1987. Further, pursuant to section 187 of the CTA, and as applicable, any power, duty or function vested in or exercisable by the National Transportation Agency under a direction from the Minister of Transport is a power, duty or function vested in or exercisable by the Agency.

By Decision No. 702-A-2006 dated December 20, 2006, the Agency authorized Cargolux, subject to certain requirements, to carry international bonded cargo shipments to/from Mirabel International Airport coming from and destined to points outside the territory of Canada until December 31, 2007.

The Agency notes that Cargolux has submitted the required statistics in respect of flights operated pursuant to Decision No. 702-A-2006.

Under Licence No. 030143, Cargolux is authorized to operate a scheduled international service on the route(s) set out in the Memorandum of Understanding between the Government of Canada and the Government of the Grand Duchy of Luxembourg on Scheduled Air Services signed on June 23, 2003 (hereinafter the Memorandum of Understanding).

The Agency has considered the application and is satisfied that Cargolux holds a valid Canadian aviation document and has prescribed liability insurance coverage in respect of the service to be provided. In addition, the Agency notes that under Licence No. 030143, Cargolux is licensed to carry cargo of Canadian origin or destination.

Accordingly, pursuant to the direction of the Minister of Transport and section 187 of the CTA, the Agency hereby authorizes Cargolux to carry international bonded cargo shipments to and from the international airports of Mirabel and Calgary coming from and destined to points outside the territory of Canada; and to combine Canadian and transshipped cargo on the same aircraft to/from the international airports of Mirabel and Calgary until December 31, 2008. These authorizations are subject to the following terms and conditions:

1. Cargolux shall report to the Agency all traffic carried to and from the international airports of Mirabel and Calgary in accordance with the Agency's reporting requirements. If no flights are operated, a nil report is to be submitted.
2. The in-transit cargo be held in bond pending its onward transportation to its destination.
3. With respect to the combination of Canadian and transshipped cargo on the same aircraft to/from the international airports of Mirabel and Calgary, the flights are to be operated in accordance with the route(s) set out in the Memorandum of Understanding.
4. With respect to the combination of Canadian and transshipped cargo on the same aircraft to/from the international airports of Mirabel and Calgary, the capacity made available for Canadian origin or destination cargo shall not exceed the total entitlements provided for in the Memorandum of Understanding; and
5. Cargolux must have sufficient liability insurance coverage in respect of the service to be provided to satisfy the minimum requirements of the ATR.

Cargolux is reminded that it must comply with the applicable requirements of all legislative acts or regulations, including those of Transport Canada. With respect to the authorizations set out above, Cargolux must hold a valid Canadian aviation document.

Cargolux is reminded to contact Transport Canada for compliance with the requirements related to security and the carriage of dangerous goods and the local airport authority for permission to operate at specific times or for the use of any airport facility. Also, Cargolux is reminded to contact the Canada Border Services Agency regarding the availability of clearance services and hours of operation of the port of entry.

A copy of this Decision shall be kept on board the aircraft and made available for inspection by the Canada Border Services Agency for each flight operated pursuant to these authorizations.

Any similar application for subsequent authorizations should be filed with the Agency in writing by November 17, 2008 and should include a copy of Cargolux's valid certificate of insurance and evidence that it continues to hold a valid Canadian aviation document, if not already on file, and any information pertaining to changes in Cargolux's corporate structure.

1. It should also be noted that pursuant to section 272 of the National Transportation Act, 1987 any power, duty or function vested in or exercisable by the Committee of the Canadian Transport Commission under directive from the Minister of Transport shall or may be exercised by the National Transportation Agency.↑

Members

• John Scott
• J. Mark MacKeigan