Agency Rulings

Order No. 1999-A-545

December 2, 1999

IN THE MATTER OF the operation of a non-scheduled international service by Transportes Aereos Portugueses, EP - Licence No. 977279.

File No. M4212/T77-2

Under Licence No. 977279, Transportes Aereos Portugueses, EP (hereinafter the Licensee) is authorized to operate a non-scheduled international service to transport international charter traffic between points in Portugal and points in Canada.

Condition No. 5 of the said licence states that:

During any operating year (the period from April 1st in any year to March 31st of the year immediately following) the Licensee shall not transport out of Canada to its home country more than three fourth freedom Canadian-originating entity cargo charter flights for every two third freedom entity cargo charter flights originated in its home country. Charters applied for in excess of the Licensee's earned entitlement will be subject to Canadian carriers' rights of first refusal.

On May 29, 1998, the Minister of Transport announced a new policy for international all-cargo charter air services (hereinafter the new policy). One of the changes brought about by the new policy relates to Condition No. 5 of Licence No. 977279. Pursuant to the new policy, this "uplift ratio" condition "is not responsive to shippers' interests" and therefore should no longer be imposed.

The Agency has considered this matter and deems it appropriate to vary Licence No. 977279 by deleting Condition No. 5.

Accordingly, the Agency, pursuant to subsection 74(1) of the Canada Transportation Act, S.C., 1996, c. 10, hereby varies Licence No. 977279 by deleting Condition No. 5.

In addition, to more accurately reflect the service authorized, Condition No. 1 of the said licence is hereby amended to read:

The Licensee is authorized to transport traffic on a charter basis between points in Portugal and points in Canada.

A new document of licence bearing Licence No. 977279 will be issued.