Determination No. A-2017-114

August 3, 2017

APPLICATION by Cathay Pacific Airways Limited (Cathay Pacific) pursuant to subsection 78(2) of the Canada Transportation Act, S.C., 1996, c. 10, as amended (CTA).

Case number: 
17-03331

Cathay Pacific has applied to the Canadian Transportation Agency (Agency) for extra bilateral authority to permit it to exercise fifth freedom traffic rights between Calgary, Alberta, Canada and New York City, New York, United States of America while operating its scheduled international all-cargo service between New York and Hong Kong, to transport equestrian horses and general cargo between Calgary and New York City.

Cathay Pacific is licensed to operate a scheduled international service in accordance with the Agreement between the Government of Canada and the Government of Hong Kong concerning Air Services signed on June 24, 1988 (Agreement).

In its application, Cathay Pacific states that it has had inquiries from its freight forwarding community to carry general cargo and equestrian horses between Calgary and New York, both ways, and that there are no wide-body aircraft or freighters operating between western Canada and New York.

Under the terms of the Agreement, there is no provision for the exercise of fifth freedom traffic rights for all-cargo services between Calgary and New York City.

Due to the extra-bilateral nature of Cathay Pacific's requested authority, the Agency gave notice of the application to parties that may have an interest, namely Air Canada, Air Transat, Enerjet, Sunwing Airlines, WestJet, Cargojet Airways, Kelowna Flightcraft Air Charter and the Calgary Airport Authority. No intervention in respect of the application was filed. The Calgary Airport Authority and Overseas Horse Services Ltd. provided letters of support in respect of the application.

The Agency may, pursuant to subsection 78(2) of the CTA, vary the terms and conditions of a licence on a temporary basis for international air services that are not permitted in an agreement.

The Agency has considered the application and the material in support and finds it appropriate to grant this authority.

Accordingly, the Agency, pursuant to subsection 78(2) of the CTA, varies Condition No. 2 of Cathay Pacific's licence to the extent necessary to permit it to exercise fifth freedom traffic rights between Calgary and New York City while operating its scheduled international all-cargo service between New York and Hong Kong, to transport equestrian horses and general cargo between Calgary and New York City, for a duration of one year from the date of this Determination.

In all other respects, the service shall be operated in accordance with the Agreement.

Member(s)

Sam Barone
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