Order No. 2000-A-501

December 28, 2000

December 28, 2000

IN THE MATTER OF an application by Alkan Air Ltd. for exemptions from the application of certain provisions of the Air Transportation Regulations, SOR/88-58, as amended, where those provisions conflict with the Government of Canada's Policy for International Passenger Charter Air Services announced by the Minister of Transport on April 4, 2000.

File No. M5000/A169

On December 14, 2000, Alkan Air Ltd. (hereinafter Alkan Air) has applied to the Canadian Transportation Agency (hereinafter the Agency) for the exemptions set out in the title.

On April 4, 2000, the Minister of Transport announced Canada's new Policy for International Passenger Charter Air Services (hereinafter the new International Passenger Charter Policy).

The Agency is in the process of amending the Air Transportation Regulations (hereinafter the ATR) to ensure that they conform with the new International Passenger Charter Policy. However, the Minister of Transport has asked the Agency to take measures to implement the new policy while the amendments to the ATR are being developed.

Pursuant to paragraph 80(1)(c) of the Canada Transportation Act, S.C., 1996, c. 10 (hereinafter the CTA), the Agency may exempt a person from the application of any of the provisions of the ATR on such terms and conditions as it deems appropriate where the Agency is of the opinion that compliance with the provision by the person is unnecessary, undesirable or impractical.

The Agency has carefully reviewed and considered the application, and all of the material filed in support thereof, and is of the opinion that, in light of the new International Passenger Charter Policy, compliance by Alkan Air with certain provisions of the ATR is unnecessary in this case.

Accordingly, the Agency, pursuant to paragraph 80(1)(c) of the CTA, hereby exempts Alkan Air from the application of the following provisions of the ATR with respect to each charter type operated pursuant to its non-scheduled international Licence No. 967677 from the date of this Order until such time as the amendments to the ATR are promulgated subject to the terms and conditions set out below as well as any terms and conditions contained in any charter program permit issued to Alkan Air by the Agency in relation to this Order:

  1. In respect of international passenger charters of the Advance Booking (ABC), Inclusive Tour (ITC), Common Purpose (CPC) and Advance Booking/ Inclusive Tour (ABC/ITC) types, the provisions of Part III of the ATR which require that:
    1. an ABC be sold to the public not later than a specified number of days prior to the date of departure;
    2. an air carrier provide return air transportation;
    3. tariffs filed with the Agency include rates to be charged for the charter of aircraft;
    4. return transportation not be commenced prior to a certain number of days following the day of departure from the point of origin; and
    5. a minimum price per seat be charged for charter transportation (floor price rule).
  2. In respect of international entity charters, the provisions of Part III of the ATR that:
    1. restrict the number of charterers to one;
    2. require that an affidavit of the charterer be filed with the Agency verifying the information set out in paragraph 34(1)(c) of the ATR; and
    3. require tariffs filed with the Agency to include rates to be charged for the charter of aircraft in respect of entity passenger charters.

Terms and Conditions of Exemption Order

  1. Three charterers will be permitted for entity passenger charters.
  2. The entire capacity of an aircraft must be chartered.
  3. The direct sale of charter seats by the licensee to the public is prohibited.
  4. The new International Passenger Charter Policy envisages that foreign charter carriers should have the ability to operate under the same conditions as Canadian charter carriers, provided acceptable reciprocity exists for Canadian carriers.

This Order does not exempt Alkan Air from the requirements of other acts or regulations, including those of Transport Canada.

Alkan Air is reminded to contact Transport Canada or the local airport authority regarding permission either to operate at specific times or to use any airport facility. Alkan Air is further reminded to contact the Canada Customs and Revenue Agency regarding the availability of clearance services.

In the event of any discrepancy between this Order and any terms and conditions of a charter program permit, the charter program permit shall prevail.

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