Decision No. 566-A-1996

November 19, 1996

November 19, 1996

APPLICATION by Airtours International Airways Limited for a licence pursuant to subsection 74(1) of the Canada Transportation Act, S.C., 1996, c. 10 to operate a non-scheduled international service to transport passengers and goods between points in the United Kingdom and points in Canada.

File No. M4212/A740-2

Docket No. 962409


Airtours International Airways Limited (hereinafter the applicant) has applied to the Canadian Transportation Agency for a licence to operate the service set out in the title. The application was received on October 2, 1996 and was complete and ready for processing on October 28, 1996.

The applicant filed an affidavit attesting that within the preceding twelve months, or since July 1, 1996, whichever is the shorter period, 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 after July 1, 1996.

The Agency has reviewed the material filed and is satisfied that the applicant meets the requirements set out in subsection 73(2) of the CTA. Accordingly, the Agency will issue to Airtours International Airways Limited a licence authorizing it to operate a non-scheduled international service.

Pursuant to subsection 74(1) of the CTA, the Agency deems it appropriate to include the terms and conditions set out below 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 ATR, to the requirements to hold a Canadian aviation document issued by the Minister of Transport and to have prescribed liability insurance coverage as set out in section 7 of the ATR, and to the following terms and conditions to which the licence is made subject pursuant to subsection 74(1) of the CTA:

  1. The Licensee is authorized to transport traffic on a charter basis between points in the United Kingdom and points in Canada.
  2. The Licensee is prohibited from carrying local traffic between points in Canada.
  3. During any operating year (the period from April 1st in any year to March 31st of the year immediately following), the Licensee may operate out of Canada six (6) charter flights carrying fourth freedom Canadian-originating charter passengers without bringing any third freedom charter passengers from its own country to Canada, but thereafter shall not transport out of Canada to its home country more than three (3) fourth freedom Canadian-originating charter flight passengers for every two (2) third freedom charter flight passengers originated in its home country which it transported to Canada. For the purpose of this condition such charter passengers must travel on a round-trip basis and the outward and return flights shall be considered as one passenger trip with the originating outbound flight of the passenger determining the status of fourth or third freedom.
  4. During any operating year (the period from April 1st in any year to March 31st of the year immediately following) the Licensee shall not transport out of Canada to its home country more than three (3) fourth freedom Canadian originating entity cargo charter flights for every two (2) third freedom entity cargo charter flights originated in its home country. Charters applied for in excess of the Licensee's earned entitlement will be subject to Canadian carriers' rights of first refusal.
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