Decision No. 151-A-2008

April 3, 2008

File No. M4835-2-57

Air Canada, on behalf of itself and Corsair, has applied to the Canadian Transportation Agency (the Agency) for the authority and approvals set out in the title. The application was received on January 29, 2008.

Under Licence Nos. 975035 and 975149, Air Canada and Corsair are respectively authorized to operate a scheduled international service in accordance with the Air Transport Agreement between the Government of Canada and the Government of the French Republic, signed on June 15, 1976, as amended (the Agreement).

Condition No. 2 of Licence Nos. 975035 and 975149 reads as follows:

The operation of the scheduled international service authorized herein shall be conducted subject to the provisions of the Agreement and to any applicable arrangements as may be agreed to between Canada and France.

The Agency has reviewed and considered the application and the material filed in support thereof.

Air Canada and Corsair are requesting extra-bilateral authority to permit the air carriers to provide their respective scheduled international services between Canada and France, by selling transportation in their own name and apply their own code on each other's flights on licensed routes between points in Canada and Paris, commencing on April 15, 2008. Under the terms of the Agreement, there is no provision for code-sharing services.

Due to the extra-bilateral nature of the application, the Agency, by letter dated February 5, 2008, gave notice of the application to parties that may have an interest, namely, Zoom Airlines Inc., Air Transat A.T. Inc., carrying on business as Air Transat, Skyservice Airlines Inc. carrying on business as Skyservice, the Montréal Pierre Elliott Trudeau International Airport (Montréal Airport), the Québec Airport, the Halifax Robert L. Stanfield International Airport (Halifax Airport) and the Greater Toronto Airports Authority (Toronto Airport). The Montréal Airport and the Toronto Airport have filed interventions in support of the application. No other interventions were received.

In its consideration of this application, the Agency has determined that to operate as proposed, Condition No. 2 of Licence Nos. 975035 and 975149 must be varied to allow for the provision of services not permitted under the Agreement.

With respect to the duration of the approval and the licence condition variances that would permit the operation of the proposed services, the Agency is prepared to grant approvals and licence condition variances from April 15, 2008 to the end of the 2008 IATA Summer season, i.e., October 25, 2008.

Accordingly, the Agency, pursuant to subsection 78(2) of the Canada Transportation Act (the CTA) varies Condition No. 2 of Licence Nos. 975035 and 975149 to the extent necessary to authorize both carriers to provide services between Canada and France by selling transportation in their own name on each other's flights on licensed routes between points in Canada and Paris, from April 15 to October 25, 2008.

With respect to the request for approval under section 60 of the CTA and section 8.2 of the Air Transportation Regulations (the ATR), the Agency is satisfied that the application meets the requirements of section 8.2 of the ATR.

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 Corsair, and the provision by Corsair of such aircraft and flight crew to Air Canada, to permit Air Canada to provide its scheduled international service on licensed routes between Canada and France by selling transportation in its own name on flights operated by Corsair between points in Canada and Paris, from April 15 to October 25, 2008.

In addition, the Agency approves the use by Corsair of aircraft and flight crew provided by Air Canada, and the provision by Air Canada of such aircraft and flight crew to Corsair, to permit Corsair to provide its scheduled international service on licensed routes between France and Canada by selling transportation in its own name on flights operated by Air Canada between points in Canada and Paris, from April 15 to October 25, 2008.

These approvals are subject to the following conditions:

1. Air Canada and Corsair shall continue to hold the required licence authorities.
2. The carriage of local traffic between points in Canada is prohibited.
3. 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.
4. The air services approved herein shall only be provided as long as a code-sharing agreement providing for such services remains in effect.
5. The approvals granted herein do not apply to the carriage of cargo.

Air Canada and Corsair are reminded of the continuing requirement to comply with sections 8.2 and 8.5 of the ATR.

Air Canada and Corsair are further reminded to provide the Agency with a copy of new agreement or any amendments to their commercial agreement, including any new or amended annexes, without delay.

The approvals granted herein do not exempt Air Canada and Corsair from the requirements of other legislative acts or regulations, including those of Transport Canada.

This Decision shall form part of Licence Nos. 975035 and 975149 and shall remain affixed thereto until October 25, 2008.

Members

• Raymon J. Kaduck
• J. Mark MacKeigan