Order No. 2009-A-622

December 23, 2009

December 23, 2009

APPLICATION by Nippon Kamotsu Koku Kabushiki Kaisha (Nippon Cargo Airlines Co., Ltd.) carrying on business as Nippon Cargo Airlines (Licence No. 090126) for exemptions from the application of certain provisions of the Air Transportation Regulations, SOR/88-58, as amended.

File Nos. M4212/N309-2

Nippon Kamotsu Koku Kabushiki Kaisha (Nippon Cargo Airlines Co., Ltd.) carrying on business as Nippon Cargo Airlines (Licensee) has applied to the Canadian Transportation Agency (Agency) for exemptions from the Air Transportation Regulations (ATR) where provisions of the ATR conflict with the Government of Canada's Policy for International All-Cargo Charter Air Services (All-Cargo Policy) announced by the Minister of Transport on May 29, 1998.

The Licensee is authorized to operate a non-scheduled international service to transport goods on a charter basis between Japan and Canada.

The Agency is in the process of amending the ATR to ensure that they conform with the All-Cargo Policy. In the interim, the Minister of Transport has asked the Agency to take measures to implement the policy while the amendments to the ATR are being developed.

The Agency finds that, in light of the All-Cargo Policy, compliance by the Licensee with certain provisions of the ATR is unnecessary in this case.

Accordingly, the Agency, pursuant to paragraph 80(1)(c) of the Canada Transportation Act, S.C., 1996, c. 10, as amended, exempts the Licensee from the application of the following provisions of the ATR with respect to entity cargo charters operated pursuant to its licence, 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 to any terms and conditions contained in any charter program permit issued to the Licensee by the Agency in relation to this Order:

In respect of international entity charters, the provisions of Part III of the ATR that:

  1. restrict the number of charterers to one;
  2. grant Canadian air carriers the right of first refusal in respect of fifth freedom entity charters proposed to be operated by non-Canadian air carriers; and
  3. 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.

The Agency also exempts the Licensee from the application of paragraph 20(a) of Part II of the ATR, as it relates to the transportation of cargo, which prohibits a licensee from chartering an aircraft to a person who obtains payment for traffic carried.

Terms and Conditions of Exemption Order

  1. There will be no limit to the number of charterers for cargo charters.
  2. The entire capacity of an aircraft must be chartered.
  3. Direct sale by a licensee at a toll per unit is prohibited.
  4. The All-Cargo 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.
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