Decision No. 718-A-2006

December 29, 2006

December 29, 2006

APPLICATION by Icelandair ehf for extra-bilateral authority pursuant to subsection 78(2) of the Canada Transportation Act, S.C., 1996, c. 10, to allow it, while operating a once weekly scheduled international all-cargo flight between Keflavik, Iceland and Halifax, Nova Scotia, Canada, to serve Charlotte, North Carolina, United States of America as an intermediate point from, from January 14 to December 31, 2007.

File No. M4212/I32-4


Icelandair ehf (hereinafter Icelandair) has applied to the Canadian Transportation Agency (hereinafter the Agency) for the authority set out in the title. The application was received on December 19, 2006.

The Agency notes that this application is for the renewal of the authority granted by Decision No. 174-A-2006 dated March 24, 2006, as varied by Decision No. 531-A-2006 dated September 29, 2006.

Under Licence No. 010006, Icelandair is authorized to operate a scheduled international service in accordance with the Memorandum of Understanding between the Government of Canada and the Government of Iceland on Scheduled Air Services signed on February 2, 2001 (hereinafter the Memorandum of Understanding).

Condition Nos. 1 and 2 of Licence No. 010006 states:

The Licensee is authorized to operate the route(s) set out in the Memorandum of Understanding.

The operation of the scheduled international service authorized herein shall be conducted subject to the provisions of the Memorandum of Understanding and to any applicable arrangements as may be agreed to between Canada and Iceland.

Under the terms of the Memorandum of Understanding, Icelandair may operate once weekly scheduled international all-cargo air services in both directions between Iceland and any point or points in Atlantic Canada, separately or in combination, using aircraft not exceeding the capacity of a B757 aircraft. Boston is specified as the only intermediate point that Icelandair may serve. Therefore, the proposed flights are not permitted under the Memorandum of Understanding.

By letter dated December 19, 2006, Air Canada and the Halifax International Airport Authority were given notice of the application. No comments were received.

The Agency may grant temporary authority pursuant to subsection 78(2) of the Canada Transportation Act (hereinafter the CTA) for a service which is not permitted in a bilateral air transport agreement.

The Agency has reviewed and considered the application and the material filed in support thereof.

Accordingly, the Agency, pursuant to subsection 78(2) of the CTA, hereby varies Condition Nos. 1 and 2 of Licence No. 010006 to the extent necessary to permit Icelandair, while operating a once weekly scheduled international all-cargo flight between Keflavik and Halifax, to serve Charlotte as an intermediate point, from January 14 to December 31, 2007, using aircraft not exceeding the capacity of a B757 aircraft.

The temporary authority is also subject to the following condition:

No local cargo may be carried between Charlotte and Halifax.

In all other respects, the service(s) shall be operated in accordance with the Agreement.

The authority granted herein does not exempt Icelandair from the requirements of other legislative acts or regulations, including those of Transport Canada.

This Decision shall form part of Licence No. 010006 and shall remain affixed thereto as long as this Decision is in force.

Members

  • Mary-Jane Bennett
  • Guy Delisle
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