Decision No. 431-A-1999

July 21, 1999

July 21, 1999

APPLICATION by Iberia, Lineas Aereas de Espana, S.A. (hereinafter Iberia) on behalf of itself and Atlas Air, Inc (hereinafter Atlas Air), for extra-bilateral authority, and approval pursuant to subsection 78(2) and 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 Iberia, while providing its scheduled international all-cargo service between Spain and Canada, to use aircraft with flight crew provided by Atlas Air for one flight each week from July 22, 1999 to October 23, 1999.

File No. M4820-S5

Docket No. 990774AG


Iberia, on behalf of itself and Atlas Air has applied to the Canadian Transportation Agency (hereinafter the Agency) for the authority and approvals set out in the title. The application was received on July 14, 1999. A clarification letter was received on July 19, 1999.

Iberia and Atlas Air 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. 975112, Iberia is authorized to operate a scheduled international service between Canada and Spain in accordance with the Agreement between the Government of Canada and the Government of Spain on Air Transport signed on September 15, 1988 (hereinafter the Agreement).

Extra-bilateral authority is requested in order to permit Iberia to pickup cargo in Miami destined for Madrid on a Miami-Mexico City-Montréal-Madrid routing.

Air Canada and Canadian Airlines International Ltd. were advised of the application and did not object to it.

The Agency notes that the Agreement does not specifically provide for designated airlines of Spain to serve Miami as a second point beyond Montréal and therefore Iberia does not hold the required licence authority. The Agency has considered the matter and has also determined that certain conditions of Iberia's licence must be varied in order to permit the provision of the proposed services.

Accordingly, the Agency, pursuant to subsection 78(2) of the Canada Transportation Act (hereinafter the CTA), hereby varies Condition Nos. 1 and 2 of the Iberia's Licence No. 975112 to permit Iberia to provide service at Miami as a second point beyond Montréal with intransit rights at Montréal for the period July 22, 1999 to October 23, 1999.

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 Iberia and Atlas Air 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 Iberia and Atlas Air be exempt from the application of subsection 8.2(2) of the ATR.

The Agency has reviewed and considered the applications and the material filed in support thereof and is satisfied that they meet the remaining requirements set out in section 8.2 of the ATR. Accordingly, the Agency, pursuant to paragraph 60(1)(b) of the CTA and section 8.2 of the ATR, hereby approves the use by Iberia of aircraft with flight crew belonging to Atlas Air, and the provision by Atlas Air of such aircraft with flight crew to Iberia, to permit Iberia to provide its once weekly scheduled international all-cargo service between Canada and Spain on the routing Miami-Mexico City-Montréal-Madrid from July 22, 1999 to October 23, 1999, subject to the following conditions:

  1. Air services shall be operated under the scheduled international licence of Iberia (Licence No.975112).
  2. Commercial control of the flights shall be maintained by Iberia. All documentation shall clearly indicate that the service is provided by Iberia.
  3. Operational control of the flights shall be maintained by Atlas Air which shall receive payment based on the rental of the aircraft and not on the basis of the volume of traffic carried.
  4. Iberia shall apply its published tariffs, on file with the Agency and in effect, to the carriage of its traffic.
  5. No local traffic may be carried between the United States of America and Canada.
  6. In all other respects, the service shall be operated in accordance with the Agreement and any applicable arrangements as may be agreed to between Canada and Spain.

Iberia and Atlas Air are reminded of the continuing requirement to comply with sections 8.2 and 8.5 of the ATR.

The authority and approvals granted herein do not exempt Iberia and Atlas Air from the requirements of other legislative acts or regulations, including those of Transport Canada.

This Decision shall form part of Licence No. 975112 and shall remain affixed thereto until October 23, 1999.

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