Decision No. 122-A-2009

March 27, 2009

March 27, 2009

APPLICATION by Air Canada, on behalf of itself, Transportes Aéros Portugueses, S.A. carrying on business as TAP, S.A., TAP-Air Portugal, Air Portugal and TAP (TAP); Jazz Air LP, as represented by its general partner, Jazz Air Holding GP Inc. carrying on business as Air Canada Jazz, Jazz and Jazz Air (Jazz); and Portugália-Companhia Portuguesa de Transportes Aereos S.A. (Portugália), 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 approval to permit the air carriers to provide their respective scheduled international services between Canada and Portugal by selling transportation in their own name on each other's and on Jazz's and Portugália's flights, commencing on March 29, 2009.

File No. M4835-2-59


Air Canada, on behalf of itself, TAP, Jazz and Portugália, has applied to the Canadian Transportation Agency (Agency) for the approvals set out in the title. The application was complete on March 24, 2009.

Under Licence No. 090015, Air Canada is authorized to operate a scheduled international service in accordance with the Agreement between the Government of Canada and the Portuguese Republic on Air Transport initialled ad referendum on June 8, 2006 (Agreement).

Under Licence No. 975126, TAP is authorized to operate a scheduled international service in accordance with the Agreement.

Under the terms of the Agreement, code sharing between designated airlines and third-country carriers is permitted. That is, while providing services between Canada and Portugal, the designated airlines may code share on each other's flights, or on flights operated by a carrier of a third country.

The Agency has reviewed and 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 that a term of three years would be appropriate.

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 TAP and its affiliate Portugália, and the provision by TAP and its affiliate Portugália 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 Portugal by selling transportation in its own name on flights operated by TAP and its affiliate Portugália.

In addition, the Agency approves the use by TAP of aircraft and flight crew provided by Air Canada and Jazz, and the provision by Air Canada and Jazz of such aircraft and flight crew to TAP, to permit TAP to provide its scheduled international services on licensed routes between Portugal and Canada by selling transportation in its own name on flights operated by Air Canada and Jazz.

These approvals are granted from March 29, 2009 to March 28, 2012 and are subject to the following conditions:

  1. Air Canada and TAP shall continue to hold the required licence authorities.
  2. Each carrier 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 services approved 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 TAP and Portugália between intermediate points and points in Portugal 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 Portugal. No local traffic may be carried under Air Canada's code between points in Portugal.
  5. Air transportation using TAP's code on flights operated by Air Canada and Jazz 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 TAP's code between Canada and Portugal. No local traffic may be carried under TAP's code between points in Canada.

Air Canada, TAP, Jazz and Portugália are reminded of the continuing requirement to comply with sections 8.2 and 8.5 of the ATR.

Air Canada, TAP, Jazz and Portugália 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.

These approvals do not exempt Air Canada, TAP, Jazz and Portugália from the requirements of other legislative acts or regulations, including those of Transport Canada.

Members

  • Raymon J. Kaduck
  • J. Mark MacKeigan

Member(s)

Raymon J. Kaduck
J. Mark MacKeigan
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