Decision No. 804-A-2000

December 28, 2000

December 28, 2000

APPLICATION by Air Canada, on behalf of itself and Canadian Airlines International Ltd. carrying on business under the firm name and style of Canadian Airlines International or Canadi*n Airlines or Canadi*n or Canadian North, for cancellation of Licence Nos. 972082, 977149, 961070, 965007, 975003, 975007, 975008, 975013, 975014, 975015, 975016, 975017, 975018, 975019, 975022, 975023, 980078, 980166, 980167, 990069 and NTA Licence No. 880683.

File Nos. M4210/C14-1
M4210/C14-2
M4210/C14-4-2
M4210/C14-4-3
M4210/C14-3-23
M4210/C14-4-26
M4210/C14-4-27
M4210/C14-4-13
M4210/C14-4-14
M4210/C14-4-15
M4210/C14-4-16
M4210/C14-4-17
M4210/C14-4-18
M4210/C14-4-19
M4210/C14-4-22
M4210/C14-3
M4210/C14-4-28
M4210/C14-4-30
M4210/C14-4-29
M4210/C14-4-31
M4895/C14-1-22


Air Canada, on behalf on itself and Canadian Airlines International Ltd. carrying on business under the firm name and style of Canadian Airlines International or Canadi*n Airlines or Canadi*n or Canadian North (hereinafter Canadi*n), has applied to the Canadian Transportation Agency (hereinafter the Agency) for the cancellation set out in the title. The application was received on November 22, 2000.

Under Licence No. 972082, Canadi*n is authorized to operate a domestic service, large aircraft.

Under Licence No. 977149, Canadi*n is authorized to operate a non-scheduled international service, large aircraft, to transport traffic on a charter basis between Canada and any other country.

Under Licence No. 961070, Canadi*n is authorized to operate a scheduled international service, large aircraft, on the routes specified in Section 1 of the Route Schedule of the Air Transport Agreement between the Government of Canada and the Government of the Czech Republic signed on March 13, 1996.

Under Licence No. 965007, Canadi*n is authorized to operate a scheduled international service, large aircraft, in a manner consistent with the Supplementary Confidential Memorandum on Air Services between the Canadian Trade Office in Taipei and the Civil Aeronautics Administration of the Ministry of Transportation and Communications in Taipei signed on February 25, 1999.

Under Licence No. 975003, Canadi*n is authorized to operate a scheduled international service, large aircraft, on the route(s) set out in the Agreement between the Government of Canada and the Government of Australia relating to Air Services signed on July 5, 1988.

Under Licence No. 975007, Canadi*n is authorized to operate a scheduled international service, large aircraft, on the route(s) set out in the Agreement between the Government of Canada and the Government of the Kingdom of Thailand on Air Services signed on May 24, 1969.

Under Licence No. 975008, Canadi*n is authorized to operate a scheduled international service, large aircraft, on the route(s) set out in the Agreement between the Government of Canada and the Government of Hong Kong concerning Air Services, signed on June 24, 1988.

Under Licence No. 975013, Canadi*n is authorized to operate a scheduled international service, large aircraft, on the route(s) set out in the Air Transport Agreement between the Government of Canada and the Government of the United Mexican States signed on December 21, 1961.

Under Licence No. 975014, Canadi*n is authorized to operate a scheduled international service, large aircraft, on the route(s) set out in the Agreement between the Government of Canada and the Government of New Zealand on Air Transport signed on September 4, 1985.

Under Licence No. 975015, Canadi*n is authorized to operate a scheduled international service, large aircraft, 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.

Under Licence No. 975016, Canadi*n is authorized to operate a scheduled international service, large aircraft, on the route(s) set out in the Civil Air Transport Agreement between the Government of Canada and the Government of the People's Republic of China signed on June 11, 1973.

Under Licence No. 975017, Canadi*n is authorized to operate a scheduled international service, large aircraft, on the route(s) set out in the Agreement between Canada and Japan for Air Services signed on January 12, 1955, as amended.

Under Licence No. 975018, Canadi*n is authorized to operate a scheduled international service, large aircraft, on the route(s) set out in the Agreement between the Kingdom of the Netherlands and Canada relating to Air Transport signed on June 2, 1989.

Under Licence No. 975019, Canadi*n is authorized to operate a scheduled international service, large aircraft, on the routes set out in the Agreement between the Government of the United Kingdom of Great Britain and Northern Ireland and the Government of Canada concerning Air Services signed on June 22, 1988.

Under Licence No. 975022, Canadi*n is authorized to operate a scheduled international service, large aircraft, on the route(s) set out in the Air Transport Agreement between the Government of Canada and the Government of the Federal Republic of Germany signed on March 26, 1973.

Under Licence No. 975023, Canadi*n is authorized to operate a scheduled international service, large aircraft, 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.

Under Licence No. 980078, Canadi*n is authorized to operate a scheduled international service, large aircraft, on the route(s) set out in the Air Service Agreement between the Government of Canada and the Government of the Russian Federation initialled ad referendum on June 17, 1998.

Under Licence No. 980166, Canadi*n is authorized to operate a scheduled international service, large aircraft, in accordance with the Agreement between the Government of Canada and the Government of the Kingdom of Sweden on Air Transport initialled, ad referendum, on February 17, 1989.

Under Licence No. 980167, Canadi*n is authorized to operate a scheduled international service, large aircraft, in accordance with the Agreement between the Government of Canada and the Government of Belgium on Air Transport signed on May 13, 1986.

Under Licence No. 990069, Canadi*n is authorized to operate a scheduled international service, large aircraft, in accordance with the Agreement between the Government of Canada and the Government of Finland for Air Services between and beyond their Respective Territories signed on May 26, 1990, as amended.

In addition, Canadi*n holds NTA Licence No. 880683 which specifies that the Licensee is authorized to operate a scheduled international service on the route Vancouver-Papeete in accordance with the Air Transport Agreement between the Government of Canada and the Government of the French Republic signed on June 15, 1976, as amended.

Air Canada submits that it is in the process of restructuring its commercial air services. As part of its restructuring, Air Canada indicates that Canadi*n will be amalgamating with Air Canada effective January 1, 2001.

Pursuant to paragraph 63(2)(b) of the Canada Transportation Act, S.C., 1996, c. 10 (hereinafter the CTA), the Agency may, subject to section 64, suspend or cancel a domestic licence in accordance with a request from the Licensee for the suspension or cancellation. Subsection 64(2) of the CTA requires that the Licensee give notice of the proposal to discontinue a domestic service and that the Licensee shall not implement the proposal until the expiration of 120 days, or 30 days if the service has been in operation for less than one year, after the notice is given or until the expiry of any shorter period that the Agency may, on application by the Licensee, specify by order.

Air Canada submits that it will continue to provide all of the domestic air services to points and between points in Canada provided by Canadi*n. The Agency is therefore of the view that compliance by Canadi*n with section 64 of the CTA is unnecessary in this case. Accordingly, pursuant to paragraph 80(1)(c) of the CTA, the Agency hereby exempts Canadi*n from the application of section 64 of the CTA.

In addition, pursuant to paragraphs 72(2)(b) and 75(2)(b) of the CTA, the Agency may suspend or cancel scheduled international licences and a non-scheduled international licence in accordance with a request from the licensee for the suspension or cancellation.

The Agency has reviewed the application and, in accordance with the request of Air Canada, on behalf of itself and Canadi*n, hereby cancels Licence Nos. 972082, 977149, 961070, 965007, 975003, 975007, 975008, 975013, 975014, 975015, 975016, 975017, 975018, 975019, 975022, 975023, 980078, 980166, 980167, 990069 and NTA Licence No. 880683 pursuant to paragraphs 63(2)(b), 72(2)(b) and 75(2)(b) of the CTA.

Pursuant to paragraph 28(1)(a) of the CTA, the Agency directs that the cancellation of these licences shall come into force on January 1, 2001.

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