Decision No. 701-A-2002

December 30, 2002

December 30, 2002

APPLICATION by "Varig", S.A. (Viaçao Aérea Rio-Grandense) Varig Brazilian Airlines for authorizations to: 1) carry international bonded cargo shipments to/from Mirabel International Airport and Hamilton Airport coming from and destined to points outside the territory of Canada; and 2) to combine Canadian and transshipped cargo on the same aircraft to/from Mirabel International Airport until December 31, 2003.

File Nos. M4815-2-1/V14
M4815-3-1/V14Docket Nos. 021359
021360


"Varig", S.A. (Viaçao Aérea Rio-Grandense) Varig Brazilian Airlines (hereinafter Varig) has applied to the Canadian Transportation Agency (hereinafter the Agency) for the authorizations set out in the title. The application was received on November 12, 2002.

In accordance with Canadian Government policy announced on August 6, 1982, the Minister of Transport directed the Air Transport Committee (hereinafter the Committee) of the Canadian Transport Commission (hereinafter the CTC) to consider applications from air carriers for authorizations to carry international cargo shipments to and from Mirabel International Airport coming from and destined to points outside the territory of Canada. The Minister of Transport further directed the Committee to make any authorization subject to the carriers' obligation to: 1) report traffic carried to and from Mirabel International Airport; and 2) have sufficient insurance to satisfy the minimum requirements of the Air Carrier Regulations, C.R.C., 1978, c. 3 (hereinafter the ACR). The in transit cargo would be held in bond pending its onward transportation to its destination. Cargo of Canadian origin or destination may not be carried under this arrangement, unless a carrier is licensed to carry such cargo. In that case, a carrier may combine transshipped cargo with Canadian cargo on the same services.

In accordance with Canadian Government policy announced on November 2, 1987, the Minister of Transport directed the Committee of the CTC to consider applications from air carriers for authorizations to carry international cargo shipments to and from Hamilton Airport coming from and destined to points outside the territory of Canada. The Minister of Transport further directed the Committee to make any authorization subject to the carriers' obligation to: 1) report traffic carried to and from Hamilton Airport; and 2) have sufficient insurance to satisfy the minimum requirements of the ACR. The in transit cargo would be held in bond pending its onward transportation to its destination.

Pursuant to subsection 7(1) of the Canada Transportation Act, S.C. 1996, c. 10 (hereinafter the CTA), the National Transportation Agency (hereinafter the NTA) is continued as the Agency. In addition, pursuant to subsection 272(2) of the National Transportation Act, 1987, R.S.C., c. 28 (3rd Supp.) (hereinafter the NTA, 1987) and section 187 of the CTA, as applicable, any power, duty or function vested in or exercisable by the CTC and subsequently the NTA under a direction from the Minister of Transport is a power, duty or function vested in or exercisable by the Agency.

By Decision No. 676-A-2001 dated December 28, 2001, the Agency authorized Varig to carry international bonded cargo shipments to/from Mirabel International Airport, and Hamilton Airport coming from and destined to points outside the territory of Canada; and to combine Canadian and transshipped cargo on the same aircraft to/from Mirabel International Airport until December 31, 2002.

The Agency notes that Varig has submitted the required statistics in respect of flights operated pursuant to Decision No. 676-A-2001 dated December 28, 2001.

Under Licence No. 975125, Varig is authorized to operate a scheduled international service on the route(s) set out in the Agreement between the Government of Canada and the Government of the Federative Republic of Brazil on Air Transport, signed on May 15, 1986, as amended (hereinafter the Agreement).

The Agency has considered the application and is satisfied that Varig holds a valid Canadian aviation document and has prescribed liability insurance coverage in respect of the service to be provided. In addition, the Agency notes that Varig is licensed to carry cargo of Canadian origin or destination under Licence No. 975125.

Accordingly, pursuant to the direction of the Minister of Transport, subsection 272(2) of the NTA, 1987 and section 187 of the CTA, the Agency hereby authorizes Varig to carry international bonded cargo shipments to and from Mirabel International Airport and Hamilton Airport coming from and destined to points outside the territory of Canada; and to combine Canadian and transshipped cargo on the same aircraft to/from Mirabel International Airport until December 31, 2003. These authorizations are subject to the following terms and conditions:

  1. Varig shall report to the Agency all traffic carried to and from Mirabel International and Hamilton Airports in accordance with the Agency's reporting requirements. If no flights are operated, a nil report is to be submitted.
  2. With respect to the combination of Canadian and transshipped cargo on the same aircraft to/from Mirabel International Airport, the flights are to be operated in accordance with the route(s) set out in the Agreement as reflected in Varig's scheduled international Licence No. 975125; and
  3. With respect to the combination of Canadian and transshipped cargo on the same aircraft to/from Mirabel International Airport, the capacity made available for Canadian origin or destination cargo shall not exceed the total entitlements provided for in the Agreement.

Varig must comply with the applicable requirements of all legislative acts or regulations, including those of Transport Canada. The in transit cargo would be held in bond pending its onward transportation to its destination.

Varig is reminded to contact Transport Canada or the local airport authority regarding permission either to operate at specific times or to use any airport facility and for compliance with the security requirements of Transport Canada. Regarding the availability of clearance services, Varig is reminded to contact the Canada Customs and Revenue Agency.

These authorizations are subject to the continuing requirements that Varig hold a valid Canadian aviation document issued by the Minister of Transport and have sufficient liability insurance coverage in respect of the service to be provided to satisfy the minimum requirements of the Air Transportation Regulations, SOR/88-58, as amended.

A copy of this Decision shall be kept on board the aircraft and made available for inspection by the Canada Customs and Revenue Agency for each flight operated.

Any application for an extension of these authorizations should be filed with the Agency in writing by November 15, 2003 and should include a copy of Varig's valid certificate of insurance and evidence that it continues to hold a valid Canadian aviation document, if not already on file, and any information pertaining to changes in Varig's corporate structure.

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