Decision No. 4-A-2001

January 8, 2001

January 8, 2001

APPLICATION by Skyservice Airlines Inc. carrying on business as Skyservice and/or Roots Air (hereinafter Skyservice), on behalf of itself and Airtours International Airways Limited (hereinafter Airtours), for an approval pursuant to section 60 of the Canada Transportation Act, S.C., 1996, c. 10, and section 8.2 of the Air Transportation Regulations, SOR/88-58, as amended, to permit Skyservice, while providing its non-scheduled international service, to use an A-320/180 seat aircraft and flight crew provided by Airtours, from January 2, 2001 to January 12, 2001.

File No. M4210/R177-2


Skyservice, on behalf of itself and Airtours, has applied to the Canadian Transportation Agency (hereinafter the Agency) for the approval set out in the title. The application was received on the after-hours service on December 30, 2000. The written application was received on January 3, 2001.

Skyservice and Airtours have also requested an exemption from the application of subsection 8.2(2) of the Air Transportation Regulations (hereinafter the ATR), which requires the filing of an application for an approval at least 45 days before the first planned flight.

Under Licence No. 977397, Skyservice is authorized to operate a non-scheduled international service, small aircraft and a non-scheduled international service, large aircraft.

By Decision No. 788-A-2000 dated December 20, 2000, the Agency, pursuant to paragraph 60(1)(b) of the Canada Transportation Act (hereinafter the CTA), authorized Skyservice, while providing its non-scheduled international service, to use an A-320/180 seat aircraft and flight crew provided by Airtours from December 20, 2000 to January 1, 2001.

With respect to the request for an exemption from the application of subsection 8.2(2) of the ATR, the Agency has considered the request and is of the opinion that compliance by Skyservice and Airtours with subsection 8.2(2) of the ATR is impractical in this case. Accordingly, the Agency, pursuant to paragraph 80(1)(c) of the CTA, hereby orders that Skyservice and Airtours be exempt from the application of subsection 8.2(2) of the ATR.

Following the verbal request, the Agency reviewed and considered the application and the material in support thereof and was satisfied that it met the remaining requirements of section 8.2 of the ATR for the period January 2, 2001 to January 9, 2001. Accordingly, the Agency verbally granted the application until January 9, 2001. However, in the written application, Skyservice and Airtours have now requested that the extension be granted until January 12, 2001.

Accordingly, pursuant to paragraph 60(1)(b) of the CTA and section 8.2 of the ATR, the Agency hereby approves the use by Skyservice of aircraft and flight crew belonging to Airtours, and the provision by Airtours of such aircraft and flight crew to Skyservice, in order to permit Skyservice, while providing its non-scheduled international service, to use an A-320/180 seat aircraft and flight crew provided by Airtours from January 2, 2001 to January 12, 2001 subject to the following conditions:

  1. Air services shall be operated under the non-scheduled international licence of Skyservice (Licence No. 977397).
  2. Commercial control of the flights shall be maintained by Skyservice. Airtours shall retain operational control of the flights and shall receive payment based on the rental of aircraft and crew and not on the basis of volume of traffic carried or other revenue-sharing formula.
  3. Prior to the first flight, Skyservice and Airtours are to revise and file with the Agency the hold harmless and indemnification provisions in both the Indemnity and Save Harmless and the Wet Lease agreements dated December 19, 2000 and as amended to reflect that the only exclusion to the aforementioned provisions relates to wilful misconduct or gross negligence of Skyservice.

Skyservice and Airtours are reminded of the continuing requirement to comply with sections 8.2 and 8.5 of the ATR.

The approval granted herein does not exempt Skyservice and Airtours from the requirements of other legislative acts or regulations, including those of Transport Canada.

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