Decision No. 112-A-2011

April 13, 2011

File No. M4835-2-31

Air Canada, on behalf of itself and British Midland Airways Limited carrying on business as bmi (British Midland), has applied to the Canadian Transportation Agency (Agency) for an approval to permit Air Canada to provide its scheduled international service between Canada and Egypt by selling transportation in its own name on flights operated by British Midland between London, United Kingdom and Cairo, Egypt, for a period of three years commencing on April 18, 2011.

Air Canada has also requested an exemption from the application of subsection 8.2(2) of the Air Transportation Regulations (ATR), which requires the filing of an application for an approval at least 45 days before the first planned flight. The Agency finds that compliance with subsection 8.2(2) of the ATR is impractical in this case. Accordingly, the Agency, pursuant to paragraph 80(1)(c) of the Canada Transportation Act (CTA), exempts Air Canada from the application of subsection 8.2(2) of the ATR.

Air Canada is licensed to operate a scheduled international service in accordance with the Interim Arrangement between the Government of Canada and the Government of the Arab Republic of Egypt set out in an Agreed Minute signed on November 10, 2010 (Interim Arrangement).

The Agency has considered the application and the material in support and is satisfied that it meets the remaining requirements of section 8.2 of the ATR.

Accordingly, the Agency, pursuant to paragraph 60(1)(b) of the CTA and section 8.2 of the ATR, approves the use by Air Canada of aircraft and flight crew provided by British Midland, and the provision by British Midland of such aircraft and flight crew to Air Canada, to permit Air Canada to provide its scheduled international service on licensed routes between Canada and Egypt by selling transportation in its own name on flights operated by British Midland between London and Cairo, from April 18, 2011 to April 17, 2014.

This approval is subject to the following conditions:

1. Air Canada shall continue to hold the valid licence authority.
2. Air Canada shall apply its published tariffs, in effect, to the carriage of its traffic. 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 shall only be provided as long as a code-sharing agreement providing for such service remains in effect.
4. Air Canada and British Midland shall continue to comply with the insurance requirements set out in subsections 8.2(4), 8.2(5) and 8.2(6) of the ATR.
5. Air Canada shall continue to comply with the public disclosure requirements set out in section 8.5 of the ATR.
6. Air Canada and British Midland shall provide the Agency with a copy of any new agreement or amendments to their code-sharing agreement, including any new or amended annex, without delay.

Members

• Raymon J. Kaduck
• Jean-Denis Pelletier, P. Eng.