Agency Rulings

Order No. 2003-A-495

September 19, 2003

IN THE MATTER OF the offering of a publicly available air service by Canadian Western Airlines Inc. without holding a licence issued by the Canadian Transportation Agency for that service.

File No. M4210/C522-2

Canadian Western Airlines Inc. (hereinafter Canadian Western), whose principal place of business is in Richmond, British Columbia, is a licensed air carrier. Under Licence No. 010071, Canadian Western is authorized to operate a domestic service using small aircraft; under Licence No. 010133, it is authorized to operate a non-scheduled international service using small aircraft; and under Licence No. 030116, it is authorized to operate a scheduled international service using small aircraft.

The Canadian Transportation Agency (hereinafter the Agency) is aware of the sale by Canadian Western of an air charter service between Vancouver and New Delhi or Amritsar, India, using B747 aircraft commencing November 5, 2003. In addition, the Agency has received a number of copies of electronic tickets sold by Canadian Western directly to the public for travel between Vancouver and New Delhi. The confirmations for the said tickets provide a Canadian Western reservation number.

Pursuant to section 59 of the Canada Transportation Act, S.C., 1996, c. 10 (hereinafter the CTA), no person shall sell, cause to be sold or publicly offer for sale, in Canada, an air service unless the person holds a licence issued under the CTA in respect of that service. In the present matter, Canadian Western does not hold a licence for international services using large aircraft.

Pursuant to section 26 of the CTA, the Agency may require a person to do or refrain from doing any thing that the person is or may be required to do or is prohibited from doing under any Act of Parliament that is administered in whole or in part by the Agency.

The Agency has carefully considered the matter and finds that Canadian Western has contravened section 59 of the CTA by selling, causing to be sold and publicly offering for sale in Canada, an air service for which it does not hold a licence issued under the CTA in respect of that service.

Accordingly, the Agency, pursuant to section 26 of the CTA, hereby orders Canadian Western to immediately cease and desist from selling, causing to be sold or publicly offering for sale in Canada a publicly available air service without holding a licence issued under the CTA in respect of that service.

Canadian Western is required to provide the Agency with a written confirmation, by 5:00 p.m. (EDT), September 23, 2003, that it has ceased selling, causing to be sold and publicly offering for sale the proposed air service to New Delhi and Amritsar, India.

With respect to the contravention set out above, it should be noted that the issuance of this Order does not preclude any actions that may be taken against Canadian Western pursuant to the Canadian Transportation Agency Designated Provisions Regulations.