Order No. 2016-A-219

December 23, 2016
APPLICATION by Yangtze River Express Airlines Co., Ltd. carrying on business as Yangtze River for exemptions from the application of certain provisions of the Air Transportation Regulations, SOR/88-58, as amended (ATR).
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Yangtze River Express Airlines Co., Ltd. carrying on business as Yangtze River (Licensee) has applied to the Canadian Transportation Agency (Agency) for exemptions from the ATR where provisions of the ATR are inconsistent with the spirit of the Government of Canada’s Policy for International All-Cargo Charter Air Services (All-Cargo Policy) announced on May 29, 1998.

The Licensee is licensed to operate a non‑scheduled international service to transport goods on a charter basis between China and Canada.

The Agency is examining prospective amendments to the ATR to have them better reflect evolving industry practices and current government policies. Pending completion of this initiative, when determining whether to grant exemptions from certain ATR requirements, the Agency will continue to take into consideration those industry practices and government policies, as well as information submitted by the Licensee in support of its application.

In light of the above, the Agency finds that 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 charter flights 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 charter flights, 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 charter flights 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.


P. Paul Fitzgerald
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