Order No. 2018-A-135

The Licensee has applied to the Canadian Transportation Agency (Agency) for exemptions from certain provisions of the ATR, consistent with exemptions that the Agency has granted to other licensees over the years.

The Agency is examining prospective amendments to the ATR, taking into consideration the evolution of industry practices over the last 20 years, due to, among other things, past policy statements from Transport Canada regarding charter services. Pending completion of this initiative, when determining whether to grant exemptions from certain provisions of the ATR, the Agency will continue to take into consideration the industry practices and government policies, as well as information submitted by the licensee in support of its application.

In light of the above, the Agency finds that compliance by the Licensee with certain provisions of the ATR is unnecessary in this case.

Accordingly, the Agency, pursuant to paragraph 80(1)(c) of the Canada Transportation Act, S.C., 1996, c. 10, as amended, exempts the Licensee from the following provisions of the ATR with respect to entity cargo charter flights operated pursuant to its licence, from the date of this Order until such time as the amendments to the ATR are promulgated, subject to the terms and conditions set out below, as well as to any terms and conditions contained in any charter program permit issued to the Licensee by the Agency in relation to this Order:

In respect of international entity charter flights, the provisions of Part III of the ATR that:

1. restrict the number of charterers to one;
2. grant Canadian air carriers the right of first refusal in respect of fifth freedom entity charter flights proposed to be operated by non Canadian air carriers; and
3. require that an affidavit of the charterer be filed with the Agency verifying the information set out in paragraph 34(1)(c) of the ATR.

The Agency also exempts the Licensee from the application of paragraph 20(a) of Part II of the ATR, as it relates to the transportation of cargo, which prohibits a licensee from chartering an aircraft to a person who obtains payment for traffic carried.

Terms and Conditions of Exemption Order

1. There will be no limit to the number of charterers for cargo charters.
2. The entire capacity of an aircraft must be chartered.
3. Direct sale by a licensee at a toll per unit is prohibited.
4. Foreign charter carriers have the ability to operate under the same conditions as Canadian charter carriers, provided that acceptable reciprocity exists for Canadian carriers.