Decision No. 10-A-2008

January 14, 2008

APPLICATION by Air Canada, on behalf of itself and Spanair S.A., pursuant to section 60 of the Canada Transportation Act, S.C., 1996, c. 10, as amended, and section 8.2 of the Air Transportation Regulations, SOR/88-58, as amended, for an approval to permit Air Canada to provide its scheduled international service between Canada and Spain by selling transportation in its own name on flights operated by Spanair S.A. between Frankfurt, Germany and Madrid, Spain, for a two-year period or for such longer period which may be authorized by the Agency commencing on January 16, 2008.

File No. M4835-2-41

Air Canada, on behalf of itself and Spanair S.A. (hereinafter Spanair), has applied to the Canadian Transportation Agency (hereinafter the Agency) for the approval set out in the title. The application was received on November 16, 2007.

The Agency notes that this application is a renewal of the approval granted by Decision No. 5-A-2006 dated January 5, 2006.

Under Licence No. 010104, Air Canada is authorized to operate, inter alia, a scheduled international service, large aircraft, in accordance with the Agreement between the Government of Canada and the Government of Spain on Air Transport signed on September 15, 1988, as amended (hereinafter the Agreement).

Under the terms of the Agreement, code sharing between designated airlines is permitted. That is, while providing services between Canada and Spain, the designated airlines may code share on each other's flights.

The Agency has reviewed and considered the application and the material filed in support thereof and is satisfied that it meets the requirements of section 8.2 of the Air Transportation Regulations (hereinafter the ATR).

With respect to the duration of the approval requested, in light of the provisions of the Agreement, the Agency considers that a term of three years would be appropriate.

Accordingly, the Agency, pursuant to paragraph 60(1)(b) of the Canada Transportation Act and section 8.2 of the ATR, hereby approves the use by Air Canada of aircraft and flight crew provided by Spanair, and the provision by Spanair of such aircraft and flight crew to Air Canada, to permit Air Canada to provide its scheduled international service between Canada and Spain by selling transportation in its own name on flights operated by Spanair between Frankfurt and Madrid, from January 16, 2008 to January 15, 2011, subject to the following conditions:

1. Air Canada shall continue to hold the required licence authority.
2. Air Canada shall apply its published tariffs, in effect, to the carriage of its traffic. In particular, nothing in any commercial agreement between the air carriers relating to limits of liability shall diminish the rights of passengers as stated in such tariffs.
3. The air service approved herein shall only be provided as long as a code-sharing agreement providing for such services remains in effect.
4. Air transportation using Air Canada's code on flights operated by Spanair between Frankfurt and Madrid shall not be sold separately and shall only be available to traffic carried on a continuous journey under Air Canada's code between Canada and Spain.

Air Canada and Spanair are reminded of the continuing requirement to comply with sections 8.2 and 8.5 of the ATR.

Air Canada and Spanair are further reminded to provide the Agency with a copy of any new agreement or amendments to their commercial agreement, including any new or amended annex, without delay.

The approval granted herein does not exempt Air Canada and Spanair from the requirements of other legislative acts or regulations, including those of Transport Canada.

Members

• Raymon J. Kaduck
• J. Mark MacKeigan