Decision No. 158-A-2010

April 29, 2010

File No. M4835-81-1

Air Berlin PLC & Co. Luftverkehrs KG carrying on business as Air Berlin (Air Berlin) and LTU Lufttransport-Unternehmen GmbH carrying on business as LTU International Airways (LTU), have applied to the Canadian Transportation Agency (Agency) for an approval to permit Air Berlin to provide its scheduled international services between Canada and Germany using aircraft and flight crew provided by LTU, for a period of three years.

As the application was filed less than 45 days before the first planned flight, as required by subsection 8.2(2) of the Air Transportation Regulations (ATR), an exemption from the application of this provision is necessary. 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(l)(c) of the Canada Transportation Act (CTA), exempts Air Berlin and LTU from the application of subsection 8.2(2) of the ATR.

Air Berlin is licensed to operate a scheduled international service in accordance with the Agreement on Air Transport between Canada and the European Community and its Member States signed on December 18, 2009 (Agreement).

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, in light of the provisions of the Agreement, the Agency considers one year to be appropriate.

Accordingly, the Agency, pursuant to paragraph 60(1)(b) of the CTA and section 8.2 of the ATR, approves the use by Air Berlin of aircraft and flight crew provided by LTU, and the provision by LTU of such aircraft and flight crew to Air Berlin, to permit Air Berlin to provide its scheduled international services on licensed routes between Canada and Germany using aircraft and flight crew provided by LTU, from May 1, 2010 to April 30, 2011.

This approval is subject to the following conditions:

1. Air Berlin shall continue to hold the valid licence authority.
2. Commercial control of the flights shall be maintained by Air Berlin. LTU shall maintain operational control of the flights and shall receive payment based on the rental of aircraft and crew and not on the basis of the volume of traffic carried or other revenue-sharing formula.
3. Air Berlin and LTU 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.
4. Air Berlin shall continue to comply with the public disclosure requirements set out in section 8.5 of the ATR.
5. Air Berlin and LTU shall advise the Agency in advance of any changes to the information provided in support of the application.

This approval does not exempt Air Berlin and LTU from the requirements of other legislative acts or regulations, including those of Transport Canada.

Members

• Raymon J. Kaduck
• J. Mark MacKeigan