Decision No. 513-A-2004

September 29, 2004

September 29, 2004

APPLICATION by AC Cargo Limited Partnership, as represented by its general partner, AC Cargo General Partner Inc., carrying on business as Air Canada Cargo pursuant to subsection 69(1) of the Canada Transportation Act, S.C., 1996, c. 10, for a licence to operate a scheduled international service, all-cargo aircraft, between points in Canada and points in the United States of America.

File No. M4210/A999-3


AC Cargo Limited Partnership, as represented by its general partner, AC Cargo General Partner Inc., carrying on business as Air Canada Cargo (hereinafter the applicant) has applied to the Canadian Transportation Agency (hereinafter the Agency) for a licence to operate the service set out in the title. The application was received on July 19, 2004 and was complete and ready for processing on September 24, 2004.

With respect to the eligibility to hold a licence as set out in subparagraph 69(1)(a)(i) of the Canada Transportation Act (hereinafter the CTA), the Agency notes that the applicant has been designated by the Minister of Transport in a letter dated April 4, 1995 to conduct international air transportation between points in Canada and points in the United States of America pursuant to the provisions of the Air Transport Agreement between the Government of Canada and the Government of the United States of America signed on February 24, 1995 (hereinafter the Agreement).

With respect to the requirement to hold a valid Canadian aviation document set out in subparagraph 69(1)(a)(ii) of the CTA, the applicant submitted a document issued to it by the Minister of Transport which states that the undertaking proposed to be carried out by the applicant does not require, nor is eligible for an air operator certificate.

The Agency has carefully examined the document filed on behalf of the Minister of Transport and is satisfied that it is a Canadian aviation document within the meaning of the CTA.

With respect to the requirement of subparagraph 69(1)(a)(iii) of the CTA, the Agency is satisfied that the applicant has the prescribed liability insurance coverage in respect of the service to be provided under the licence.

The Agency also notes that the applicant filed an affidavit attesting that within the twelve months preceding the filing of the application it did not contravene section 59 of the CTA in that it has not sold, caused to be sold or publicly offered for sale in Canada transportation in respect of the applied for air service without holding the required licence. The applicant has also undertaken in respect of the air service applied for that it will not contravene section 59 of the CTA prior to the issuance of the applied for licence. The Agency is not aware of any evidence that the applicant contravened section 59 of the CTA within the preceding twelve months.

The Agency is therefore also satisfied that the applicant meets the requirements of paragraph 69(1)(b) of the CTA. In addition, the Agency is satisfied that the pertinent terms and conditions of the Agreement have been complied with. However, the Agency notes that the Certificates of Insurance and Endorsement take effect on September 30, 2004.

Accordingly, the Agency will issue to the applicant a licence to operate a scheduled international service, all-cargo aircraft.

Pursuant to subsection 71(1) of the CTA, the Agency deems the terms and conditions set out below to be consistent with the Agreement and will therefore include them in the licence to be issued pursuant to this Decision.

The licence to be issued pursuant to this Decision shall be subject, in addition to the conditions prescribed by the Air Transportation Regulations, SOR/88-58, as amended (hereinafter the ATR), to have prescribed liability insurance coverage as set out in section 7 of the ATR, and to the following terms and conditions pursuant to subsection 71(1) of the CTA:

  1. This Licence takes effect on September 30, 2004.
  2. The Licensee is authorized to operate a scheduled international service between points in Canada and points in the United States of America.
  3. The operation of the scheduled international service authorized herein shall be conducted subject to the appropriate provisions of the Agreement and to any arrangements related thereto as may be agreed to between Canada and the United States of America.
  4. Unless terminated at an earlier date in accordance with the CTA or the Agreement, this licence shall terminate at the termination or expiration of the Agreement, or upon the effective date of any amendment to the Agreement which shall have the effect of eliminating the rights herein authorized.

Further, in order to ensure continued compliance with subparagraph 69(1)(a)(ii) of the CTA, the applicant is reminded that it is required to provide the Agency with any documentation that has or would have the effect of altering its proposed undertaking.

Pursuant to paragraph 28(1)(a) of the CTA, the Agency directs that the licence comes into force on September 30, 2004.

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