Decision No. 136-A-2013

El Al Israel Airlines Ltd. (El Al), on behalf of itself, American Airlines, Inc. (American Airlines) and American Eagle Airlines, Inc. (American Eagle), has applied to the Canadian Transportation Agency (Agency) for an approval to permit El Al to provide its scheduled international service between Israel and Canada by selling transportation in its own name on flights operated by American Airlines and American Eagle between the United States of America and Canada, from April 1, 2013 to March 31, 2014 or such longer period as may be authorized by the Agency.

El Al 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 El Al from the application of subsection 8.2(2) of the ATR.

El Al is licensed to operate a scheduled international service in a manner consistent with the Agreed Minute between Canada and Israel signed on March 4, 2013 (Agreed Minute).

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.

With respect to the duration of the approval requested, the Agency is of the opinion that as the licence expires on March 31, 2014, concurrently with the entitlements for scheduled air services in the Agreed Minute, it would be inappropriate to consider approval of the application beyond the expiry date of the licence.

Accordingly, the Agency, pursuant to paragraph 60(1)(b) of the CTA and section 8.2 of the ATR, approves the use by El Al of aircraft and flight crew provided by American Airlines and American Eagle and the provision by American Airlines and American Eagle of such aircraft and flight crew to El Al, to permit El Al to provide its scheduled international service on licensed routes between Israel and Canada by selling transportation in its own name on flights operated by American Airlines and American Eagle between the United States of America and Canada, from April 1, 2013 to March 31, 2014.

This approval is subject to the following conditions:

1. El Al shall continue to hold the valid licence authority.
2. El Al 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. El Al, American Airlines and American Eagle 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. El Al shall continue to comply with the public disclosure requirements set out in section 8.5 of the ATR.
6. El Al and American Airlines 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.