Decision No. 661-A-2006

December 1, 2006

File No. M4835-60-1

TACA International Airlines, S.A. carrying on business as TACA Airlines (hereinafter TACA), on behalf of itself and Lineas Aereas Costarricenses S.A. carrying on business as LACSA (hereinafter LACSA), has applied to the Canadian Transportation Agency (hereinafter the Agency) for the approval set out in the title. The application was received on November 20, 2006.

TACA 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.

Under Licence No. 970075, LACSA is authorized to operate a scheduled international service in accordance with the Agreement between the Government of Canada and the Government of the Republic of Costa Rica on Air Transport initialled ad referendum on November 22, 1996.

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 TACA 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 TACA be exempt from the application of subsection 8.2(2) of the ATR.

Air Canada, the designated Canadian airline to serve Costa Rica, did not object to the application.

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, 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 LACSA of aircraft and flight crew provided by TACA, and the provision by TACA of such aircraft and flight crew to LACSA, in order to permit LACSA to provide its scheduled international service between Costa Rica and Canada using aircraft and flight crew provided by TACA, from December 1, 2006 to November 30, 2007, subject to the following conditions:

1. LACSA shall continue to hold the required licence authority.
2. Commercial control of the flights shall be maintained by LACSA. 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.

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

TACA and LACSA 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 TACA and LACSA from the requirements of other legislative acts or regulations, including those of Transport Canada.

Members

• Guy Delisle
• Mary-Jane Bennett