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Interlocutory Decisions : 2001

2001-09-28

LET-A-410-2001

File No. M5000-C222

Canada 3000 Airlines Limited

Reference is made to Canada 3000 Airlines Limited's (hereinafter Canada 3000) facsimile letter dated September 24, 2001 notifying the Canadian Transportation Agency (hereinafter the Agency) of Canada 3000's intention to implement a $2.00 Cdn Insurance Surcharge per sector effective October 1, 2001 and requesting exemptions from the requirement to submit modified international charter contracts that reflect the surcharge for those charter permit applications already filed with the Agency.

Pursuant to paragraph 80(1)(c) of the Canada Transportation Act, S.C., 1996, c. 10 (hereinafter the CTA), the Agency may exempt a person from the application of any of the provisions of the Air Transportation Regulations, as amended (ATR) on such terms and conditions as it deems appropriate where the Agency is of the opinion that compliance with the provision by the person is unnecessary, undesirable or impractical.

The Agency has carefully reviewed and considered the application and is of the opinion that compliance by Canada 3000 with the provisions of paragraph 41(4)(b) of the ATR for ABC/ITC charters, paragraph 43(2.2)(b) for ITC charters and paragraph 54(1)(b) of the ATR for ABC charters, which require that a modified contract be submitted, is impractical in this case. With respect to future operations for which program permits have not yet issued, this exemption is subject to Canada 3000 providing the Agency with evidence that the advance payments received as a result of this surcharge have been protected as required by paragraph 43(2.1)(c) of the ATR for ITC passengers and subsection 65(1) for ABC passengers.