BILL C-26 (First Reading)

Measures to address concerns	(5) The parties to the transaction shall
	(a) after conferring with the Minister regarding concerns referred to in subparagraph (4)(b)(i), inform the Minister of any measures they are prepared to undertake to address those concerns; and
	(b) after conferring with the Commissioner regarding concerns identified under subparagraph (4)(b)(ii), inform the Commissioner of any measures they are prepared to undertake to address those concerns.
	The parties may propose revisions to the transaction.
Preconditions to recommenda- tion	(6) Before making a recommendation for the purposes of subsection (7), the Minister shall obtain the Commissioner's assessment of the adequacy of any undertaking proposed by the parties to address the concerns that have been identified under subparagraph (4)(b)(ii) and the effects of any proposed revisions to the transaction on those concerns.
Approval of Governor in Council	(7) If the Governor in Council is satisfied that it is in the public interest to approve the proposed transaction, taking into account any revisions to it proposed by the parties and any measures they are prepared to undertake, the Governor in Council may, on the recommendation of the Minister, approve the transaction and specify any terms and conditions that the Governor in Council considers appropriate. The Governor in Council shall indicate those terms and conditions that relate to potential prevention or lessening of competition and those that relate to the public interest as it relates to national transportation.
Variation of terms and conditions	(8) On application by a person who is subject to terms and conditions specified under subsection (7), the Governor in Council may, on the recommendation of the Minister, vary or rescind the terms and conditions. If the terms and conditions to be varied or rescinded affect competition, the Minister shall consult with the Commissioner before making the recommendation.
Commissioner 's representa- tions	(9) If the Minister directs the Agency under section 49 to inquire into any matter or thing to assist the Minister in making a recommendation under subsection (7) or (8), the Agency shall give notice of the inquiry to the Commissioner and allow the Commissioner to make representations to the Agency.
Compliance with terms and conditions	(10) Every person who is subject to terms and conditions shall comply with them.
Canadian	53.3 The Agency shall determine whether a proposed transaction referred to in subsection 53.1(1) that involves an air transportation undertaking would result in an undertaking that is Canadian as defined in subsection 55(1).
Order of divestiture - application by Minister	53.4 (1) If a person contravenes subsection 53.2(1) or (10) with respect to a term or condition that relates to the public interest as it relates to national transportation, a superior court may, on application by the Minister, order the person to cease the contravention or do any thing that is required to be done, and may make any other order that it considers appropriate, including an order requiring the divestiture of assets. The Minister shall notify the Commissioner of Competition before making an application.
Order of divestiture - application by Commissioner	(2) If a person contravenes subsection 53.2(10) with respect to a term or condition that relates to potential prevention or lessening of competition, a superior court may, on application by the Commissioner, order the person to cease the contravention or do any thing that is required to be done, and may make any other order that it considers appropriate, including an order requiring the divestiture of assets. The Commissioner shall notify the Minister before making an application.
Regulations	53.5 The Governor in Council may, on the recommendation of the Minister, make regulations
	(a) specifying information required in a notice under subsection 53.1(1); and
	(b) exempting classes of transactions from the application of sections 53.1 to 53.3.
Offence - subsection 53.1(1)	53.6 (1) Every person who contravenes subsection 53.1(1) is guilty of an offence and is liable
	(a) on conviction on indictment, to a fine not exceeding $50,000; or
	(b) on summary conviction, to a fine not exceeding $25,000.
Offence - subsection 53.2(1) or (10)	(2) Every person who contravenes subsection 53.2(1) or (10) is guilty of an indictable offence and liable to imprisonment for a term not exceeding five years or to a fine not exceeding $10,000,000, or to both.
Continuing offence	(3) If an offence under subsection (2) is committed or continued on more than one day, the person who commits it is liable to be convicted for a separate offence for each day on which it is committed or continued.
Officers, etc., of corporations	(4) If a corporation commits an offence under subsection (1) or (2), any officer, director or agent of the corporation who directed, authorized, assented to, acquiesced in or participated in the commission of the offence is a party to and guilty of the offence and is liable on conviction to the punishment provided for the offence whether or not the corporation has been prosecuted or convicted.
Sections 174 and 175 do not apply	(5) Sections 174 and 175 do not apply in respect of an offence committed under subsection (1) or (2).
	12. Subsection 55(1) of the Act is amended by adding the following in alphabetical order:
``domestic service provider'' « fournisseur de service intérieur »	``domestic service provider'' means a person that has entered into a contract with the holder of a domestic licence for the provision of a domestic service and that represents themself to the public as operating the domestic service;
	13. (1) Subsection 56(1) of the Act is replaced by the following:
Non-applica- tion of Part	56. (1) This Part does not apply to a person that uses an aircraft on behalf of the Canadian Armed Forces or any other armed forces cooperating with the Canadian Armed Forces.
	(2) Section 56 of the Act is amended by adding the following after subsection (2):
Emergency service exclusion	(3) This Part does not apply to the provision of an air service if the federal government, a provincial government or a municipality declares an emergency under federal or provincial law, and that government or municipality directly or indirectly requests that the air service be provided to respond to the emergency.
Public interest	(4) The Minister may, by order, prohibit the provision of an air service under subsection (3) or require the discontinuance of that air service if, in the opinion of the Minister, it is in the public interest to do so.
Exemption	(5) The order is exempt from the examination, registration or publication required by the Statutory Instruments Act.
2000, c. 15, s. 2	14. The heading before section 56.1 and sections 56.1 to 56.7 of the Act are repealed.
	15. Sections 58 and 59 of the Act are replaced by the following:
Prohibition	57.1 No person shall carry out activities as a domestic service provider unless, in respect of those activities, the person holds a licence issued under section 61 or 68.1 and has the prescribed liability insurance coverage.
Licence not transferable	58. A licence issued under this Part is not transferable.
Prohibition re sale	59. No person shall sell, cause to be sold or publicly offer for sale in Canada an air service unless, if required under this Part, a person holds a licence issued under this Part in respect of that service and that licence is not suspended .
	16. The Act is amended by adding the following after section 60:
Advertising	60.1 (1) Subject to subsection (2), a licensee, or a person acting on behalf of a licensee, that advertises an air service in Canada or originating in Canada and includes a price for that service in the advertisement shall indicate, in the same advertisement, the total amount to be paid by the purchaser for the service.
Fees and charges	(2) A licensee, or a person acting on behalf of a licensee, is not required to include the following items in the total amount referred to in subsection (1):
	(a) any fee or charge collected by the licensee on behalf of an airport authority, if the fee or charge is individually identified and its amount, or the range of its amount, is indicated in the advertisement;
	(b) a charge payable under section 11 of the Air Travellers Security Charge Act or any other fee or charge collected by the licensee on behalf of a government, if the fee or charge is individually identified and its amount, or the range of its amount, is indicated in the advertisement; and
	(c) any federal or provincial tax payable by the purchaser, other than a charge payable under section 11 of the Air Travellers Security Charge Act, if the tax is identified in the advertisement.
Air service price	60.2 No licensee, and no person acting on behalf of a licensee, shall advertise the price of an air service if no person can obtain the service at the advertised price.
Contracts	60.3 A licensee shall include, in contracts or arrangements that relate to the sale of air services in Canada or originating in Canada and are with travel wholesalers, tour operators, charterers or other persons associated with the provision of air services to the public, a requirement that the travel wholesalers, tour operators, charterers and other persons act in conformity with sections 60.1 and 60.2.
Regulations	60.4 The Agency may, on the recommendation of the Minister, make regulations respecting the advertising of the price of air services in Canada or originating in Canada.
	17. The heading before section 61 of the English version of the Act is replaced by the following:
	Domestic Service
	18. Section 62 of the Act is replaced by the following:
Qualification exemption	62. If the Minister considers it necessary or advisable in the public interest that a domestic licence be issued to a person who is not a Canadian, the Minister may on any terms and conditions, and for any period, that the Minister may specify exempt the person from the application of subparagraph 61(a)(i).
	19. Section 64 of the Act is amended by adding the following after subsection (3):
Exemption	(3.1) This section does not apply to a licensee that operates a domestic service that is seasonal in nature for 8 months or less in a 12-month period.
2000, c. 15, s. 4	20. (1) The portion of subsection 66(1) of the Act before paragraph (a) is replaced by the following:
Unreasonable fares or rates	66. (1) If, on complaint in writing to the Agency by any person or on its own motion , the Agency finds that a licensee, including affiliated licensees, is the only person providing a domestic service between two points and that a fare, cargo rate or increase in a fare or cargo rate published or offered in respect of the service is unreasonable, the Agency may, by order,
2000, c. 15, s. 4	(2) Subsection 66(2) of the Act is replaced by the following:
Complaint of inadequate range of fares or rates	(2) If, on complaint in writing to the Agency by any person or on its own motion , the Agency finds that a licensee, including affiliated licensees, is the only person providing a domestic service between two points and that it is offering an inadequate range of fares or cargo rates in respect of that service, the Agency may, by order, direct the licensee, for a period that the Agency considers reasonable in the circumstances, to publish and apply in respect of that service one or more additional fares or cargo rates that the Agency considers reasonable in the circumstances.
2000, c. 15, s. 4	(3) The portion of subsection 66(3) of the Act before paragraph (a) is replaced by the following:
Relevant information	(3) When making a finding under subsection (1) or (2) that a fare, cargo rate or increase in a fare or cargo rate published or offered in respect of a domestic service between two points is unreasonable or that a licensee is offering an inadequate range of fares or cargo rates in respect of a domestic service between two points, the Agency may take into consideration any information or factor that it considers relevant, including
2000, c. 15, s. 4	(4) Paragraph 66(3)(b) of the Act is replaced by the following:
	(b) fares or cargo rates applicable to similar domestic services offered by the licensee and one or more other licensees, including terms and conditions related to the fares or cargo rates , the number of seats available at those fares and the cargo capacity and cargo container types available at those rates ;
2000, c. 15, s. 4	(5) Paragraph 66(3)(c) of the Act is replaced by the following:
	(c) any other information provided by the licensee, including information that the licensee is required to provide under section 83.
2000, c. 15, s. 4	(6) Subsection 66(4) of the Act is replaced by the following:
Alternative domestic services	(4) The Agency may find that a licensee is the only person providing a domestic service between two points if every alternative domestic service between those points is, in the opinion of the Agency, unreasonable, taking into consideration the number of stops, the number of seats offered, the frequency of service, the flight connections and the total travel time and, more specifically, in the case of cargo, the cargo capacity and cargo container types available.
Alternative service	(4.1) The Agency shall not make an order under subsection (1) or (2) in respect of a licensee found by the Agency to be the only person providing a domestic service between two points if, in the opinion of the Agency, there exists another domestic service that is not between the two points but is a reasonable alternative taking into consideration the convenience of access to the service, the number of stops, the number of seats offered, the frequency of service, the flight connections and the total travel time and, more specifically, in the case of cargo, the cargo capacity and cargo container types available.
2000, c. 15, s. 4	(7) Subsection 66(6) of the Act is repealed.
2000, c. 15, s. 4	(8) The portion of subsection 66(7) of the Act before paragraph (a) is replaced by the following:
Informing the Agency	(7) Every licensee operating a domestic service between two points in accordance with a published timetable or on a regular basis shall
2000, c. 15, s. 4	(9) Paragraph 66(7)(b) of the Act is replaced by the following:
	(b) on request, inform the Agency of the tariffs it applied in respect of any of its domestic services during the previous three years and provide the Agency with any information that the Agency considers necessary and that is in support of those tariffs or related to the passenger seating or cargo capacity offered or proposed to be offered in relation to the fares or cargo rates set out in those tariffs.
	21. Paragraph 67(1)(a) of the Act is replaced by the following:
	(a) display in a prominent place at the business offices of the licensee a sign indicating that the tariffs for the domestic service offered by the licensee, including the terms and conditions of carriage, are available for public inspection at the business offices of the licensee, and allow the public to make such inspections;
	(a.1) publish the terms and conditions of carriage on any Internet site used by the licensee for selling the domestic service offered by the licensee;
2000, c. 15, s. 6	22. Subsection 67.2(1) of the Act is replaced by the following:
When unreasonable or unduly discriminatory terms or conditions	67.2 (1) If, on complaint in writing to the Agency by any person or on its own motion , the Agency finds that the holder of a domestic licence has applied terms or conditions of carriage applicable to the domestic service it offers that are unreasonable or unduly discriminatory, the Agency may suspend or disallow those terms or conditions and substitute other terms or conditions in their place.
2000, c. 15, s. 7	23. Subsection 68(1) of the Act is replaced by the following:
Non-applica- tion of fares, etc.	68. (1) Sections 66 to 67.2 do not apply in respect of fares, rates or charges applicable to a domestic service provided for under a contract between a holder of a domestic licence and another person whereby the parties to the contract agree to keep its provisions confidential.
Non-applica- tion of terms and conditions	(1.1) Sections 66 to 67.2 do not apply in respect of terms and conditions of carriage applicable to a domestic service provided for under a contract referred to in subsection (1) to which an employer is a party and that relates to travel by its employees.
	24. The Act is amended by adding the following after section 68:
Issue of licence	68.1 On application to the Agency and on payment of the specified fee, the Agency shall issue a domestic service provider licence to the applicant if
	(a) the applicant establishes in the application to the satisfaction of the Agency that the applicant
	(i) is a Canadian,

Domestic Service