Decision No. 198-A-2015

Air Canada also carrying on business as Air Canada rouge (Air Canada), on behalf of itself and Türk Hava Yollari Anonim Ortakligi (Turkish Airlines Inc.) carrying on business as Turkish Airlines (Turkish Airlines), has applied to the Canadian Transportation Agency (Agency) for an approval to permit Air Canada to provide its international air service on a scheduled basis between Canada and Iran by selling transportation in its own name on flights operated by Turkish Airlines between Turkey and Iran, for such period as may be authorized by the Agency beginning on July 2, 2015.

Air Canada is licensed to operate, through code sharing, an international air service on a scheduled basis, using large aircraft, between Canada and Iran.

Condition No. 2 of the licence states:

This licence shall terminate on July 2, 2016.

The Agency has considered the application and the material in support and is satisfied that it meets the requirements of section 8.2 of the Air Transportation Regulations (ATR).

With respect to the duration of the approval requested, the Agency notes that the licence issued to Air Canada is in effect until July 2, 2016. Therefore, the Agency considers it appropriate to grant the approval until July 1, 2016.

Accordingly, the Agency, pursuant to paragraph 60(1)(b) of the Canada Transportation Act and section 8.2 of the ATR, approves the use by Air Canada of aircraft with flight crew provided by Turkish Airlines, and the provision by Turkish Airlines of such aircraft and flight crew to Air Canada, to permit Air Canada to provide its international air service on a scheduled basis between Canada and Iran by selling transportation in its own name on flights operated by Turkish Airlines between Turkey and Iran, beginning on July 2, 2015 to July 1, 2016.

This approval is subject to the following conditions:

1. Air Canada shall continue to hold the valid licence authority.
2. Air Canada 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. Air Canada and Turkish Airlines 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. Air Canada shall continue to comply with the public disclosure requirements set out in section 8.5 of the ATR.
6. Air Canada and Turkish 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.
7. This approval does not apply to the carriage of cargo.