Decision No. 135-A-2000

February 29, 2000

File No. M4835-2-29

Docket No. 000192AG

Canadi*n, on behalf of itself and Air Canada, has applied to the Canadian Transportation Agency (hereinafter the Agency) for the approval set out in the title. The application was received on February 18, 2000.

Canadi*n has also requested an exemption from the application of subsection 8.2(2) of the Air Transportation Regulations (hereinafter the ATR), which requires the filing of an application for an approval at least 45 days before the first planned flight.

Under Licence No. 965007, Canadi*n is authorized to operate a scheduled international service, large aircraft, in a manner consistent with the Supplementary Confidential Memorandum on Air Services between the Canadian Trade Office in Taipei and the Civil Aeronautics Administration of the Ministry of Transportation and Communications in Taipei signed on February 25, 1999.

Under Licence No. 990050, Air Canada is authorized to operate a scheduled international service, medium aircraft, and a scheduled international service, large aircraft, in a manner consistent with the Supplementary Confidential Memorandum on Air Services between the Canadian Trade Office in Taipei and the Civil Aeronautics Administration of the Ministry of Transportation and Communications in Taipei signed on February 25, 1999.

On February 19, 2000, the Minister of Transport, pursuant to paragraph 76(1)(e) of the Canada Transportation Act (hereinafter the CTA) directed the Agency to, inter alia, grant authorizations for one-year renewable periods in order to allow the air carriers to operate in a manner consistent with the February 25, 1999 Supplementary Confidential Memorandum on Air Services. In addition, the Minister advised that Air Canada and Canadi*n should be permitted to cross-code share on each other's flights between Canada and Taiwan.

With respect to the request for an exemption from the application of subsection 8.2(2) of the ATR, the Agency has considered the request and is of the opinion that compliance by Canadi*n with subsection 8.2(2) of the ATR is impractical in this case. Accordingly, the Agency, pursuant to paragraph 80(1)(c) of the CTA, hereby orders that Canadi*n be exempt from the application of subsection 8.2(2) of the ATR.

The Agency has reviewed and considered the application and the material filed in support thereof, 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) and section 76 of the CTA, and to section 8.2 of the ATR, hereby approves the use by Air Canada of aircraft and flight crew provided by Canadi*n, and the provision of such aircraft and flight crew by Canadi*n to Air Canada to permit Air Canada to sell transportation in its own name and apply its own code on flights operated by Canadi*n between Vancouver and Taipei.

This approval is granted for the period from March 1, 2000 to March 26, 2001.

Notwithstanding any provisions to the contrary in any agreement or arrangement between Canadi*n and Air Canada, the approval set out above is subject to the following conditions:

1. Canadi*n and Air Canada shall continue to hold the required licence authorities.
2. Canadi*n and Air Canada shall apply their published tariffs, on file with the Agency and in effect, to the carriage of their 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.

Canadi*n and Air Canada are reminded to advise the Agency in advance of any changes to the information provided in support of the subject application.

Canadi*n and Air Canada are also reminded of the continuing requirement to comply with sections 8.2 and 8.5 of the ATR.

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