Decision No. 133-A-1998
March 27, 1998
APPLICATIONS by Canadian Airlines International Ltd. carrying on business under the firm name and style of either Canadian Airlines International or Canadi*n (hereinafter Canadi*n) and Mandarin Airlines Limited (hereinafter Mandarin) for an approval pursuant to section 60 of the Canada Transportation Act, S.C., 1996, c. 10, and section 8.2 of the Air Transportation Regulations, SOR/88-58, as amended, to permit them to provide scheduled international services between Vancouver and Taipei by blocking space and selling transportation in their own names on each other's aircraft, during the period from March 29, 1998 to April 4, 1998.
File No. M4835-3-18
Docket No. 980034AG
Canadi*n and Mandarin have applied to the Canadian Transportation Agency (hereinafter the Agency) for the approvals set out in the title. The application filed by Canadi*n was received on January 26, 1998 and the application filed by Mandarin was received on January 23, 1998 and amended on January 29, 1998, February 24, 1998 and March 25, 1998.
The Agency has reviewed and considered the applications and the material filed in support thereof. Pursuant to the Minister of Transport's direction of December 4, 1990, as modified by letter dated March 24, 1997, to paragraph 60(1)(b) and section 76 of the Canada Transportation Act (hereinafter the CTA) and to section 8.2 of the Air Transportation Regulations (hereinafter the ATR), the Agency hereby approves the use by Canadi*n and Mandarin of aircraft and flight crew provided by the other air carrier, and the provision by Canadi*n and Mandarin of such aircraft and flight crew to the other air carrier, to permit them to provide licenced international scheduled services between Vancouver and Taipei by blocking space and selling transportation on each other's aircraft during the period from March 29, 1998 to April 4, 1998.
Notwithstanding any provisions to the contrary in any agreement or arrangement between Canadi*n and Mandarin, or between Mandarin and China Airlines Ltd., the approvals set out above are subject to the following conditions:
- Both Canadi*n and Mandarin shall have valid and subsisting scheduled international licences for air services between Canada and Taiwan.
- The approvals granted herein do not apply to the blocking of space for the carriage of cargo.
- Each air carrier shall apply its published tariffs, on file with the Agency and in effect, to the carriage of its traffic. In particular, nothing in any commercial agreement between the two air carriers relating to limits of liability shall diminish the rights of passengers as stated in such tariffs.
- Mandarin's flight numbers shall be restricted to services between Vancouver and Taipei, Taiwan.
- Unless otherwise authorized by the Agency upon application, Mandarin shall, for the purpose of providing the scheduled international services authorized herein, exclusively use aircraft and crew bearing the logos, trade marks, trade names and/or other corporate identification of Mandarin.
- Commercial control of the air services provided by Mandarin shall be maintained by Mandarin. In reference to the Aircraft Lease Agreement between Mandarin and China Airlines Ltd., remuneration to China Airlines Ltd. shall not be based on the volume of traffic carried or any other revenue-sharing formula.
Canadi*n and Mandarin are reminded of the continuing requirement to comply, except as may be provided for above, with sections 8.2 and 8.5 of the ATR. Furthermore, Canadi*n and/or Mandarin shall provide the Agency with copies of any revisions to the commercial agreement or its annexes.
It should be noted that the approvals granted herein do not exempt Canadi*n and Mandarin from the requirements of other legislative acts or regulations, including those of Transport Canada.
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