Agency Rulings

Decision No. 352-A-2002

July 5, 2002

APPLICATION by JAT-Yugoslav Airlines for an exemption from section 59 of the Canada Transportation Act, S.C., 1996, c. 10, to permit JAT-Yugoslav Airlines to sell, cause to be sold or publicly offer for sale in Canada a non-scheduled service while its licence is suspended.

File No. M4210/J39-4-1

JAT-Yugoslav Airlines (hereinafter JAT-Yugoslav) filed with the Canadian Transportation Agency (hereinafter the Agency) the application set out in the title. The application was received on June 26, 2002.

Section 59 of the Canada Transportation Act (hereinafter the CTA) states that no person shall sell, cause to be sold or publicly offer for sale in Canada an air service unless, where required under Part II of the CTA, the person holds a licence under that Part in respect of that service.

JAT-Yugoslav holds National Transportation Agency (hereinafter NTA) Licence No. 880478, which specifies that it is authorized to operate a Class 9-4 Charter non-scheduled international service between points in Yugoslavia and points in Canada using fixed wing aircraft in Groups F, G and H.

By letter dated May 27, 1992, the Minister of Transport pursuant to paragraph 86(1)(e) of the National Transportation Act, 1987, R.S.C., 1985, c. 28 (3rd Supp.), directed the NTA to suspend the licences of JAT-Yugoslav until such time as the Minister of Transport determines that the suspensions are no longer necessary or advisable, and accordingly so directs the NTA.

As a result, by Order No. 1992-A-174 dated May 27, 1992, Licence No. 880478, inter alia, was suspended.

Usually, in order to reinstate a licence, a licensee must hold a Canadian aviation document and must meet the prescribed liability insurance coverage. However, in this case, the Agency notes that there are additional requirements.

By letter dated November 5, 1996, the Minister of Transport rescinded the direction of May 27, 1992 in order to permit non-scheduled international air services to be operated by Yugoslavian air carriers. The Minister also made the reinstatement of JAT-Yugoslav's non-scheduled licence subject to specific conditions, including conditions relating to arrangements with Citizenship and Immigration. The Minister also advised that Transport Canada's Director General of Air Policy and Programs would advise the Agency when these requirements are satisfied. To date, the Agency has not received this advice and is unable to estimate when the requirements may be satisfied.

Under these circumstances, the Agency finds it inappropriate to permit sales in advance of a potential reinstatement of JAT-Yugoslav's licence. Accordingly, the Agency hereby denies the application by JAT-Yugoslav.