Decision No. 712-A-2006

December 28, 2006

File No. M4835-16

Flair Airlines Ltd. (hereinafter Flair), on behalf of itself and Cubana de Aviacion S.A. (hereinafter Cubana), has applied to the Canadian Transportation Agency (hereinafter the Agency) for the approval set out in the title. The application was received on December 18, 2006.

The Agency notes that this application is a renewal of the approval granted by Decision No. 534-A-2006 dated October 2, 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.

The Agency notes that the application was filed less than 45 days before the first planned flight, as required by subsection 8.2(2) of the Air Transportation Regulations (hereinafter the ATR), and therefore an exemption from the application of this provision is necessary. The Agency is of the opinion that compliance with subsection 8.2(2) of the ATR is impractical in this case. Accordingly, pursuant to paragraph 80(l)(c) of the Canada Transportation Act (hereinafter the CTA), the Agency hereby orders that Flair 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.

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 Flair, and the provision by Flair of such aircraft and flight crew to Cubana, in order to permit Cubana to provide its scheduled international service between Cuba and Canada using aircraft and flight crew provided by Flair, from January 2 to April 1, 2007, 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. Flair 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 agreement between Cubana and Flair providing for such services remains in effect.

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

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

Members

• Baljinder Gill
• Mary-Jane Bennett