Decision No. 549-A-2005

September 2, 2005

September 2, 2005

APPLICATION by Federal Express Corporation and Gemini Air Cargo, Inc., 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 Federal Express Corporation to provide its scheduled international service between the United States of America and Canada using aircraft and flight crew provided by Gemini Air Cargo, Inc., from September 26 to December 25, 2005.

File No. M4835-17-2


Federal Express Corporation (hereinafter Federal Express) and Gemini Air Cargo, Inc. (hereinafter Gemini) have applied to the Canadian Transportation Agency (hereinafter the Agency) for the approval set out in the title. The application was received on August 26, 2005.

Under Licence No. 975091, Federal Express is authorized to operate a scheduled international service in accordance with the Air Transport Agreement between the Government of Canada and the Government of the United States of America signed on February 24, 1995.

The Agency notes that this application is a renewal of the approval granted by Decision No. 321-A-2005 dated May 26, 2005.

The Agency notes that the application was filed less than 45 days before the first planned flight as required by subsection 8.2(2) of the Air Transportation Regulations (hereinafter the ATR), and therefore an exemption from the application of this provision is necessary. The Agency is of the opinion that compliance with subsection 8.2(2) of the ATR is impractical in this case. Accordingly, pursuant to paragraph 80(l)(c) of the Canada Transportation Act (hereinafter the CTA), the Agency hereby orders that Federal Express be exempt from the application of subsection 8.2(2) of the ATR.

The Agency has reviewed and considered the application and the material filed in support thereof and is satisfied that it meets the remaining requirements of 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 Federal Express of aircraft and flight crew provided by Gemini, and the provision by Gemini of such aircraft and flight crew to Federal Express, in order to permit Federal Express to provide its scheduled international service between the United States of America and Canada using aircraft and flight crew provided by Gemini, from September 26 to December 25, 2005, subject to the following conditions:

  1. Federal Express shall continue to hold the required licence authority.
  2. Commercial control of the flights shall be maintained by Federal Express. Gemini shall maintain operational control of the flights and shall receive payment based on the rental of aircraft and crew and not on the basis of the volume of traffic carried or other revenue-sharing formula.

Federal Express and Gemini are reminded to advise the Agency in advance of any changes to the information provided in support of the subject application.

Federal Express and Gemini are further reminded of the continuing requirement to comply with sections 8.2 and 8.5 of the ATR.

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

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