Decision No. 473-A-2013

This Decision has been rescinded by 301-A-2015">Decision No. 301-A-2015.

This Decision has been varied by Decision No. 131-A-2014.

December 30, 2013

APPLICATION by Air Canada also carrying on business as Air Canada rouge on behalf of itself and 8165343 Canada Inc. carrying on business as Air Canada rouge, pursuant to section 32 of the Canada Transportation Act, S.C., 1996, c. 10, as amended.

File No.: 
M4835/A74-A1197

Air Canada also carrying on business as Air Canada rouge (Air Canada), on behalf of itself and 8165343 Canada Inc. carrying on business as Air Canada rouge (816), has applied to the Canadian Transportation Agency (Agency) to vary Decision Nos. 250-A-2013">250-A-2013 and 318-A-2013">318-A-2013 (Decisions) to reflect that the approvals apply to Air Canada rouge LP, as represented by its general partner, Air Canada rouge General Partner Inc. (rouge LP) rather than 816.

Air Canada and 816 submit that 816 currently operates various flights on behalf of Air Canada between Canada and the United States of America as well as between Canada and various international destinations in Europe, Mexico and the Caribbean, all of which are pursuant to the terms of a Commercial Agreement between Air Canada and 816 dated January 1, 2013.

Air Canada and 816 advise that 816 is in the process of transferring substantially all of its assets, rights, liabilities and obligations to rouge LP, pursuant to a corporate reorganization that will become effective December 31, 2013. This transfer will include the assignment of the Commercial Agreement.

The Agency has considered the application and the material in support and finds, pursuant to section 32 of the Canada Transportation Act (CTA), that there has been a change in the facts or circumstances pertaining to the Decisions since they were issued and that they should be varied.

Accordingly, the Agency, pursuant to section 32 of the CTA, varies the Decisions by replacing all reference to “8165343 Canada Inc.” with “Air Canada rouge LP, as represented by its general partner, Air Canada rouge General Partner Inc.”

Air Canada points out that the correct title for the agreement between Air Canada and 816 is the Commercial Agreement. Therefore, the Agency, pursuant to section 32 of the CTA, varies Decision No. 250-A-2013 by replacing in Condition Nos. 2 and 5 “Purchase Capacity Agreement” with “Commercial Agreement”. The Agency also varies Decision No. 318‑A-2013 by replacing in Condition Nos. 2 and 5 “Capacity Purchase Agreement” with “Commercial Agreement”.

Pursuant to paragraph 28(1)(b) of the CTA, the Agency may in any order direct that the order or a portion of it shall come into force on the happening of any contingency, event or condition specified in the order.

The Agency, pursuant to paragraph 28(1)(b) of the CTA, directs that these variances shall come into force on the effective date of the execution of the proposed transaction.

Member(s)

Sam Barone
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