Order No. 2013-A-101
APPLICATION by All Nippon Airways Co., Ltd. for an exemption from the application of section 58 of the Canada Transportation Act, S.C., 1996, c. 10, as amended.
All Nippon Airways Co., Ltd. (ANA) has applied to the Canadian Transportation Agency (Agency) for an exemption to allow for the transfer of its licence following an internal corporate restructuring.
Under Licence No. 961010, ANA is authorized to operate a scheduled international service in accordance with the Agreement between the Government of Canada and the Government of Japan for Air Services signed on January 12, 1955, as amended.
Section 58 of the Canada Transportation Act (CTA) provides that a licence issued for the operation of an air service is not transferable.
Pursuant to paragraph 80(1)(c) of the CTA, the Agency may exempt a person from the application of a provision of the CTA where the Agency is of the opinion that compliance with the provision by the person is unnecessary, undesirable or impractical.
ANA advised the Agency that it is effecting a corporate reorganization. As part of the reorganization, ANA’s airline-related business is to be transferred to a new company under a holding company structure, effective April 1, 2013. The new company will continue to operate under the name All Nippon Airways Co., Ltd. (new ANA).
The Agency is satisfied that new ANA meets the requirements of paragraph 69(1)(a) of the CTA which provides that a Licensee must be designated by its government to operate the air service, must hold a document issued by its government that is equivalent to a scheduled international licence issued by the Agency, must hold a Canadian aviation document and must have the prescribed liability coverage.
The Agency has considered the matter and finds that the proposed transaction is in the nature of an internal corporate restructuring. Therefore, compliance by ANA with section 58 of the CTA is impractical in the present circumstances.
Accordingly, the Agency, pursuant to paragraph 80(1)(c) of the CTA, exempts ANA from the application of section 58 of the CTA.
Licence No. 961010 will be transferred from ANA to new ANA. However, the Agency, pursuant to paragraph 28(1)(b) of the CTA, may in any order direct that the order or a portion or provision of it shall come into force on the happening of any contingency, event or condition specified in the order.
The Agency directs that the transfer of this licence shall come into force upon the occurrence of the execution of the proposed transaction which takes effect on April 1, 2013.
A new document of licence will be issued to the new company, All Nippon Airways Co., Ltd.