PC Number: 2003-0803

Date: 2003-06-02

                      Whereas by Letter Decision No. LET-A-94-2003 of April 4, 2003, the Canadian Transportation Agency (the “Agency”) granted charter program permits to MK Airlines Limited for the operation of 34 fifth freedom entity all-cargo charter flights from April 6, 2003 to June 1, 2003;

                      Whereas by Decision No. 239-A-2003 of May 2, 2003, an application by Air Canada for review pursuant to section 32 of the Canada Transportation Act of Letter Decision No. LET-A-94-2003 of April 4, 2003, was considered and the Agency was of the opinion that Air Canada did not show that there existed sufficient new facts or circumstances to warrant amending or rescinding the decision;

                      Whereas by Letter Decision No. LET-A-118-2003 of May 15, 2003, the Agency approved three additional flights from an application by MK Airlines Limited for an extension of its authority to operate 51 additional one-way all-cargo charter flights between Spain and Luxembourg and either Mirabel or Halifax;

                      Whereas the Agency approved the three flights for June 4 and June 5, 2003, without seeking views on the grounds that this portion of the application was an extension to the 34 flights approved previously;

                      Whereas by Notice Letter of May 16, 2003, the Agency cancelled one of the previously approved flights as part of a revised application by MK Airlines Limited reducing the total number of flights to 33;

                      Whereas by Decision No. 305-A-2003 of May 29, 2003, the Agency approved additional flights by MK Airlines Limited commencing June 4, 2003 and ending on July 31, 2003;

                      Whereas the Agency, in approving these flights, applied policies relating to fifth freedom entity all-cargo charter flights whereas the flights were in fact seventh freedom entity all-cargo charter flights;

                      And whereas, pursuant to section 40 of the Canada Transportation Act, the Governor in Council may, on its own motion, vary or rescind any decision of the Agency;

                      Therefore, Her Excellency the Governor General in Council, on the recommendation of the Minister of Transport, pursuant to section 40 of the Canada Transportation Act, hereby

(a) rescinds Letter Decision No. LET-A-94-2003 of April 4, 2003, effective the date of this Order in Council;

(b) rescinds Letter Decision No. LET-A-118-2003 of May 15, 2003, in respect of approval of the two remaining flights (numbers MKA1602 and MKA1603) scheduled for operation on June 5, 2003, effective the date of this Order in Council; and

(c) rescinds Decision No. 305-A-2003 of May 29, 2003 respecting MK Airlines Limited in respect of approval of additional flights commencing June 4, 2003 and ending July 31, 2003, effective the date of this Order in Council.