Decision No. 672-A-2002

December 17, 2002

File No. M5000/M274

On November 25, 2002, Mytravel Airways Limited (hereinafter Mytravel) applied to the Canadian Transportation Agency (hereinafter the Agency) for authority to operate the following series of Advance Booking Charter flights (hereinafter ABCs) on behalf of Mytravel Canada Holiday, Inc. carrying on business as Sunquest Vacations:

1. Toronto/London (Gatwick)/Toronto - 1 flight December 20, 2002 return January 3, 2003.
2. Calgary/Vancouver/London (Gatwick)/ Calgary/Vancouver- 1 flight December 21, 2002 return January 3, 2003.
3. Toronto/Glasgow/Manchester/Toronto - 1 flight December 22, 2002 return January 4, 2003.

Under Licence No. 961058, Mytravel is authorized to operate a non-scheduled international service to transport traffic on a charter basis between points in the United Kingdom and points in Canada.

On December 9, 2002, Agency staff advised Mytravel that it does not meet the requirement of subsection 65(1) of the Air Transportation Regulations, SOR/88-58, as amended (hereinafter ATR), as Mytravel failed to submit the required evidence of protection of advance payments. Mytravel was therefore requested to submit the required evidence no later than Friday, December 13, 2002.

Subsection 65(1) of the ATR states:

The Agency shall not consider an application for a program permit to operate an ABC unless the applicant has a financial guarantee with a Canadian financial institution, in a standard form provided by the Agency, that provides that any advance payment in respect of the ABC is fully protected from the time it is received by the applicant from the charterer.

The Agency has considered the applications for program permits to operate the above-noted ABC flights and notes that Mytravel did not submit evidence of advance payment protection from a Canadian financial institution as required by subsection 65(1) of the ATR. Therefore, as provided for in subsection 65(1), the Agency shall not consider these applications.

The Agency notes, however, that there are also United Kingdom originating flights as set out below:

1. London (Gatwick)/Toronto/London (Gatwick) - 1 flight December 20, 2002 return January 3, 2003.
2. London (Gatwick)/Calgary/Vancouver/ London (Gatwick)- 1 flight December 21, 2002 return January 3, 2003.

   Manchester/Glasgow/Toronto/Glasgow/Manchester - 1 flight December 22, 2002 return January 4, 2003.

This aspect of the applications will be dealt with separately pursuant to Part III, Division VII of the ATR.