Order No. 2014-A-251

December 24, 2014

APPLICATION by Alitalia Compagnia Aerea Italiana S.p.A. carrying on business as C.A.I. Compagnia Aerea Italiana, C.A.I. and Alitalia for an exemption from the application of section 58 of the Canada Transportation Act, S.C., 1996, c. 10, as amended.

Case number: 
14-06208

Alitalia Compagnia Aerea Italiana S.p.A. carrying on business as C.A.I. Compagnia Aerea Italiana, C.A.I. and Alitalia (CAI) has applied to the Canadian Transportation Agency (Agency) for an exemption to allow for the transfer of its licence to Alitalia ‑ Società Aerea Italiana S.p.A. carrying on business as Alitalia - Società Aerea Italiana, Alitalia SAI and Alitalia (SAI).

Under Licence No. 090002, CAI is authorized to operate scheduled international services in accordance with the Agreement on Air Transport between Canada and the European Community and its Member States, signed on December 18, 2009.

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.

CAI advised the Agency that it is effecting a corporate reorganization. As part of the reorganization, CAI’s airline-related business is to be transferred to SAI, effective on January 1, 2015. SAI intends to carry on business as Alitalia - Società Aerea Italiana, Alitalia SAI and Alitalia.

The Agency is satisfied that SAI 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 and must hold a document issued by its government that is equivalent to a scheduled international licence issued by the Agency. Also, SAI must hold a Canadian aviation document and must have the prescribed liability insurance coverage. In this regard, the Agency notes that SAI holds a Canadian aviation document and has the prescribed liability insurance coverage to be effective on January 1, 2015.

The Agency has considered the matter and finds that the proposed transaction is in the nature of an internal corporate restructuring. Therefore, compliance by CAI 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 CAI from the application of section 58 of the CTA.

Licence No. 090002 will be transferred from CAI to SAI. 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 will take effect on January 1, 2015.

A new document of licence will be issued to Alitalia - Società Aerea Italiana S.p.A. carrying on business as Alitalia - Società Aerea Italiana, Alitalia SAI and Alitalia.

Member(s)

Sam Barone
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