Decision No. 139-A-1999

March 26, 1999

File No. M4835-3-28

Docket No. 990042AG

Canadi*n, on behalf of itself and Alaska Airlines, Inc. (hereinafter Alaska), has applied to the Canadian Transportation Agency (hereinafter the Agency) for the approval set out in the title. The application was received on January 14, 1999 and was amended on February 19, 1999.

Under Licence No. 975013, Canadi*n is authorized to operate a scheduled international service in accordance with the Air Transport Agreement between the Government of Canada and the Government of the United Mexican States signed on December 21, 1961 (hereinafter the Agreement).

With respect to the proposed duration of the approval, the Agency notes that code-sharing between Canadian and "third country" (in this case, the United States of America) air carriers is specifically permitted in the Agreement, subject to the normal regulatory requirements of the aeronautical authorities. Under such circumstances the Agency considers that it is appropriate to grant approval for an indefinite period as requested.

The Agency has reviewed the application and considered the material filed in support thereof, and is satisfied that the application meets the requirements set out in section 8.2 of the Air Transportation Regulations (hereinafter the ATR).

The Agency notes that Canadi*n and Alaska already hold approval by the Agency to code share on each other's services between points in Canada and points in the United States of America, and that the approval requested is to allow Canadi*n to provide additional service between Canada and Mexico by selling transportation in its own name and by applying its code on Alaska's flights between the United States of America and Mexico.

Accordingly, the Agency, pursuant to paragraph 60(1)(b) of the Canada Transportation Act and section 8.2 of the ATR hereby approves the use by Canadi*n of aircraft and crew provided by Alaska, and the provision by Alaska of such aircraft and crew to Canadi*n to permit Canadi*n to sell transportation in its own name and apply its own code on flights operated by Alaska between points in the United States of America and points in Mexico for the carriage of Canadi*n's traffic between Canada and Mexico as part of a continuous journey under Canadi*n's code between points in Canada and points in Mexico, for an indefinite period commencing April 4, 1999, subject to the following conditions:

1. Canadi*n and Alaska shall continue to hold the required licence authorities.
2. Air transportation using Canadi*n's code on Alaska's flights between points in the United States of America and points in Mexico shall not be sold separately and shall only be available to Canadi*n's traffic carried on a continuous journey, without stopover, between Canada and Mexico.
3. Canadian shall apply its published tariffs, on file with the Agency and in effect, to the carriage of its traffic between Canada and Mexico. 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.

Canadi*n and Alaska are 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 Alaska from the requirements of other legislative acts or regulations, including those of Transport Canada.