Order No. 2006-A-679
December 29, 2006
IN THE MATTER OF an application by BWIA West Indies Airways Limited carrying on business as Caribbean Airlines for an exemption from the application of section 58 of the Canada Transportation Act, S.C. 1996, c. 10, in order to allow the issuance of Licence Nos. 970011 and 975060 to Caribbean Airlines Limited effective January 1, 2007.
File Nos. M4212/C601-2
BWIA West Indies Airways Limited carrying on business as Caribbean Airlines (hereinafter BWIA) has applied to the Canadian Transportation Agency (hereinafter the Agency) for the exemption set out in the title. The application was received on December 14, 2006 and was complete and ready for processing on December 27, 2006.
Under Licence No. 970011, BWIA is authorized to operate a non-scheduled international service to transport traffic on a charter basis between points in the Republic of Trinidad and Tobago and points in Canada.
Under Licence No. 975060, BWIA is authorized to operate a scheduled international service in accordance with Article V of the Agreement between the Government of Canada and the Government of the Republic of Trinidad and Tobago on Air Services, initialled ad referendum on July 20, 1988 (hereinafter the Agreement).
Section 58 of the Canada Transportation Act (hereinafter the CTA) states that a licence issued for the operation of an air service is not transferable.
BWIA is requesting an exemption from the application of section 58 of the CTA to allow the issuance of its licences to Caribbean Airlines Limited. BWIA states that the Government of the Republic of Trinidad and Tobago, which currently owns 97.128 percent of its shares, will be the sole owner of Caribbean Airlines Limited and has reinvested a substantial sum of money in operating capital and owns 100 percent of the shares of Caribbean Airlines Limited. BWIA adds that the reorganization involves inter alia the transfer of substantially all of the business operations and assets of BWIA to Caribbean Airlines Limited. The existing BWIA management will continue to operate the new company, and no material change will occur in this regard as a result of the corporate reorganization and creation of the new company. Finally, the present holders of the BWIA authorities and operating certificates and aircraft maintenance organizations will continue in their present roles under the new entity and the relevant staff, crews, mechanics, administrative support and all aircraft operated by BWIA will stay the same.
The Agency has considered the application and the material filed in support thereof and is satisfied that the corporate reorganization as described by BWIA is in the nature of an internal restructuring. The Agency also notes that Caribbean Airlines Limited has been designated by its Government under the Agreement.
The Agency is therefore of the opinion that compliance by BWIA West Indies Airways Limited carrying on business as Caribbean Airlines with section 58 of the CTA is impractical in the present circumstances.
Accordingly, pursuant to paragraph 80(1)(c) of the CTA, the Agency hereby exempts BWIA West Indies Airways Limited carrying on business as Caribbean Airlines from the application of section 58 of the CTA.
The Agency notes that Caribbean Airlines Limited holds a valid Canadian aviation document effective January 1, 2007 and has prescribed liability insurance coverage effective January 1, 2007.
The Agency is satisfied that Caribbean Airlines Limited meets the requirements of paragraph 69(1)(a), subparagraphs 73(1)(a)(ii) and (iii) and paragraph 73(2)(a) of the CTA which provide that a Licensee must be designated by its government to operate the air services, must hold a document issued by its government that is equivalent to a scheduled international licence and a non-scheduled international licence issued by the Agency, must hold a Canadian aviation document and must have the prescribed liability coverage.
In light of the above, Licence Nos. 970011 and 975060 are hereby transferred to Caribbean Airlines Limited.
Pursuant to paragraph 28(1)(a) of the CTA, the Agency directs that the transfer of these licences shall come into force on January 1, 2007.
New documents of licence bearing Licence Nos. 970011 and 975060 will be issued to Caribbean Airlines Limited.