Decision No. 79-A-2000

February 4, 2000

File No. M4812/A74-4-27

Docket No. 000017AG

Air Canada has applied to the Canadian Transportation Agency (hereinafter the Agency) for the authority set out in the title. The application was received on January 27, 2000.

Under Licence No. 975052, Air Canada is authorized to operate a scheduled international service in accordance with the Agreement between the Government of Hong Kong and the Government of Canada concerning Air Services signed on June 24, 1988 (hereinafter the Agreement).

Condition No. 1 of Licence No. 975052 states:

The Licensee is authorized to operate between Canada and Hong Kong on Canada Route 1 as set out in the Annex to the Confidential Memorandum of Understanding between the Government of Hong Kong and the Government of Canada signed on June 24, 1988.

Condition No. 3 of Licence No. 975052 states:

The Licensee's own aircraft operations are subject to the following conditions:

a) prior to the 1996 IATA summer operating season, frequency shall be limited to no more than three flights per week in each direction using any aircraft type;

b) thereafter, frequency shall be limited to no more than four flights per week in each direction using any aircraft type.

The Government of Hong Kong has advised Air Canada that Hong Kong is prepared to permit Air Canada to operate a daily service between Toronto and Hong Kong on an extra-bilateral basis.

The Agency has reviewed and considered the application and the material filed in support thereof and has determined that daily service between Toronto and Hong Kong is not provided for in the Agreement. Consequently, Air Canada will require special authority to increase the frequency of its service. In light of the Government of Hong Kong's approval of the subject application, the Agency is satisfied that Air Canada should be permitted to increase the frequency of its service as requested.

Accordingly, pursuant to subsection 78(2) of the Canada Transportation Act, the Agency hereby varies Condition No. 3 of Licence No. 975052 in order to allow Air Canada to operate three (3) additional flights per week between Toronto and Hong Kong during the period commencing on April 3, 2000 and ending on October 28, 2000, subject to the following condition:

The service shall be operated in accordance with the Agreement and any applicable arrangements as may be agreed to between Canada and Hong Kong.

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

This Decision shall form part of Licence No. 975052 and shall remain affixed thereto as long as this Decision is in force.