Decision No. 112-A-2012

Air Canada, on behalf of itself and Thai Airways International Public Company Limited (Thai Airways), has applied to the Canadian Transportation Agency (Agency) for approvals to permit:

1. Air Canada to provide its scheduled international services between Canada and Thailand by selling transportation in its own name on flights operated by Thai Airways; and
2. Thai Airways to provide its scheduled international service between Thailand and Canada by selling transportation in its own name on flights operated by Air Canada.

These approvals are requested for a period of three years or such period as may be authorized by the Agency.

Air Canada and Thai Airways are licensed to operate scheduled international services in accordance with the Agreement between the Government of Canada and the Government of the Kingdom of Thailand on Air Services, signed on May 24, 1989 (Agreement).

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

With respect to the duration of the approvals requested, in light of the provisions of the Agreement, the Agency considers three years to be appropriate.

Accordingly, the Agency, pursuant to paragraph 60(1)(b) of the Canada Transportation Act and section 8.2 of the ATR, approves the use by:

1. Air Canada of aircraft and flight crew provided by Thai Airways, and the provision by Thai Airways of such aircraft and flight crew to Air Canada, to permit Air Canada to provide its scheduled international services on licensed routes between Canada and Thailand by selling transportation in its own name on flights operated by Thai Airways; and
2. Thai Airways of aircraft and flight crew provided by Air Canada, and the provision by Air Canada of such aircraft and flight crew to Thai Airways, to permit Thai Airways to provide its scheduled international service on licensed routes between Thailand and Canada by selling transportation in its own name on flights operated by Air Canada.

These approvals are granted for a period of three years commencing May 24, 2012, and are subject to the following conditions:

1. Air Canada and Thai Airways shall continue to hold the valid licence authorities.
2. Air Canada and Thai Airways shall apply their published tariffs, in effect, to the carriage of their 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 services approved shall only be provided as long as a code-sharing agreement providing for such services remains in effect.
4. Air Canada and Thai Airways 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 and Thai Airways shall continue to comply with the public disclosure requirements set out in section 8.5 of the ATR.
6. Air Canada and Thai Airways 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.
7. Air transportation using Air Canada’s code on flights operated by Thai Airways between intermediate points and points in Thailand 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 Thailand. No local traffic may be carried under Air Canada’s code between points in Thailand.
8. Air transportation using Thai Airways’ code on flights operated by Air Canada between intermediate points and points in Canada shall not be sold separately and shall only be available to traffic carried on a continuous journey under Thai Airways’ code between Thailand and Canada.