Decision No. 200-A-2004

April 21, 2004

An erratum was issued on April 22, 2004

April 21, 2004

APPLICATION by Air Canada, on behalf of itself and British Midland Airways Limited carrying on business as BMI (hereinafter BMI), for approvals pursuant to section 60 of the Canada Transportation Act, S.C., 1996, c. 10, and section 8.2 of the Air Transportation Regulations, SOR/88-58, as amended, to permit Air Canada to provide its scheduled international services between Canada and the United Kingdom by selling transportation in its own name on flights operated by BMI and its affiliates between points in Canada and points in the United Kingdom, including flights between points in the United Kingdom operated by BMI and its affiliates, and to permit BMI to provide its scheduled international services between the United Kingdom and Canada by selling transportation in its own name on flights operated by Air Canada and its affiliates between points in the United Kingdom and points in Canada, including flights between Canada and the United States of America, and between points in Canada operated by Air Canada and its affiliates, commencing on April 23, 2004.

File No. M4835-2-31

Air Canada, on behalf of itself and BMI has applied to the Canadian Transportation Agency (hereinafter the Agency) for the approvals set out in the title. The application was received on February 12, 2004 and was complete and ready for processing on April 14, 2004.

Under Licence Nos. 975038 and 020110, respectively, Air Canada and BMI are authorized to operate scheduled international services in accordance with the Agreement between the Government of Canada and the Government of United Kingdom of Great Britain and Northern Ireland on Air Services signed on June 22, 1988 (hereinafter the Agreement).

By Decision No. 484-A-2002 dated August 29, 2002, BMI holds an approval, until September 2, 2005, to provide scheduled international services between the United Kingdom and Canada by selling transportation in its own name on flights operated by Air Canada and its affiliates between points in Canada and points in the United Kingdom, including flights operated by Air Canada and its affiliates between points in Canada.

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

Accordingly, the Agency, pursuant to paragraph 60(1)(b) of the Canada Transportation Act (hereinafter the CTA) and section 8.2 of the ATR, hereby approves the use by Air Canada of aircraft and flight crew provided by BMI and its affiliates, and the provision by BMI and its affiliates of such aircraft and flight crew to Air Canada, to permit Air Canada to provide its scheduled international services between Canada and the United Kingdom by selling transportation in its own name on flights operated by BMI and its affiliates between points in Canada and points in the United Kingdom, including flights between points in the United Kingdom operated by BMI and its affiliates, from April 23, 2004 to October 31, 2006.

In addition, the Agency hereby approves the use by BMI of aircraft and flight crew provided by Air Canada and its affiliates, and the provision by Air Canada and its affiliates of such aircraft and flight crew to BMI, to permit BMI to provide its scheduled international services between the United Kingdom and Canada by selling transportation in its own name on flights operated by Air Canada and its affiliates between points in the United Kingdom and points in Canada, including flights between Canada and the United States of America, and between points in Canada operated by Air Canada and its affiliates, from April 23, 2004 to October 31, 2006.

These approvals are subject to the following conditions:

  1. Air Canada, BMI and their affiliates shall continue to hold the required licence authorities.
  2. Each air carrier shall apply its published tariff, on file with the Agency and 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.
  3. The air services approved herein shall only be provided as long as a code-sharing agreement, providing for such services remains in effect.
  4. The approvals granted herein do not apply to the carriage of cargo.
  5. Air transportation using Air Canada's code on flights operated by BMI and its affiliates between points in the United Kingdom shall not be sold separately and shall only be available to traffic carried on a continuous journey under Air Canada's code between points in Canada and points in the United Kingdom. No local traffic may be carried under Air Canada's code between points in the United Kingdom.
  6. Air transportation using BMI's code on flights operated by Air Canada and its affiliates between points in Canada and between points in Canada and points in the United States of America shall not be sold separately and shall only be available to traffic carried on a continuous journey under BMI's code between the United Kingdom and Canada or the United States of America. No local traffic may be carried under BMI's code between points in Canada, and between points in Canada and points in the United States of America.

Air Canada, BMI and their respective affiliates are reminded of the continuing requirement to comply with sections 8.2 and 8.5 of the ATR.

Air Canada and BMI are further reminded to provide the Agency with a copy of any new agreement, any amendments to their code-sharing agreement, including any new or amended annex, without delay.

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

As a result of the approvals granted by this Decision, Decision No. 484-A-2002 dated August 29, 2002 is redundant.

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