Decision No. 78-A-1999

March 2, 1999

March 2, 1999

APPLICATION by El Al Israel Airlines Ltd. for an approval pursuant to sections 60 and 77 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 it to operate services beyond Montréal to Baltimore, Chicago, Los Angeles, New York and Miami, using aircraft and flight crew belonging to North American Airlines, Inc., for the period from March 3, 1999 until February 15, 2000.

File No. M4835-6-1


El Al Israel Airlines Ltd. (hereinafter El Al), on behalf of itself and North American Airlines, Inc. (hereinafter North American), has applied to the Canadian Transportation Agency (hereinafter the Agency) for the approval set out in the title. The application was received on February 26, 1999 and was amended on March 1, 1999.

With respect to the request by the applicant to be exempted from the requirement of subsection 8.2(2) of the Air Transportation Regulations (hereinafter the ATR), to file an application at least 45 days before the first planned flight, the Agency is of the opinion that compliance by El Al with subsection 8.2(2) of the ATR is impractical in this case. Accordingly, the Agency, pursuant to paragraph 80(1)(c) of the Canada Transportation Act (hereinafter the CTA), hereby orders that El Al be exempt from the application of subsection 8.2(2) of the ATR.

Under Licence No. 975134, El Al is authorized to operate a scheduled international service on the route set out in the Agreement between the Government of Canada and the Government of the State of Israel on Air Transport signed on April 13, 1986 as amended (hereinafter the Agreement).

The Agency notes that Israel has served notice of termination of the Agreement effective October 22, 1999. Accordingly the Agency is prepared to grant the approval to October 22, 1999 only.

The Agency has reviewed 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, pursuant to section 60 of the CTA and section 8.2 of the ATR, the Agency hereby approves the use by El Al of aircraft and flight crew belonging to North American, and the provision by North American of such aircraft and flight crew to El Al, in order to permit El Al to operate services beyond Montréal to Baltimore, Chicago, Los Angeles, New York and Miami, from March 3, 1999 to October 22, 1999, subject to the following conditions:

  1. Air services shall be operated under El Al's scheduled international licence. Commercial control of the flights shall be maintained by El Al. North American shall retain operational control of the flights and shall receive payment based on the rental of aircraft and crew, not on the basis of volume of traffic carried or other revenue sharing formula.
  2. El Al shall apply its published tariffs, on file with the Agency and in effect, to the carriage of its traffic. In particular, nothing in any commercial agreement between El Al and North American relating to limits of liability shall diminish the rights of passengers as stated in such tariffs.
  3. During the period of this approval, the Agency shall be notified of any changes to the frequency of service or aircraft type at least ten (10) days before implementation.

El Al and North American are reminded of the continuing requirement to comply with sections 8.2 and 8.5 of the ATR.

All flights are subject to the provisions of the Agreement. With respect to the change of gauge provisions in Article III of the said Agreement and pursuant to section 77 of the CTA, the Agency hereby authorizes El Al to operate, for each transatlantic flight with its own aircraft between Israel and Montréal, up to three return flights beyond Montréal to points in the United States of America from March 3, 1999 to October 22, 1999.

It should be noted that the Agency is not bound by its previous decisions and, accordingly, this approval should not be relied upon for justification for similar applications in the future. Furthermore, the Agency advises that the authority granted herein does not exempt El Al from the requirements of other legislative acts or regulations, including those of Transport Canada.

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