Decision No. 240-A-2011

June 30, 2011

File No. M4835-2-31

Air Canada, on behalf of itself and British Midland Airways Limited carrying on business as bmi (bmi), has applied to the Canadian Transportation Agency (Agency) for approvals to permit Air Canada to provide its scheduled international services between Canada and Syria and between Canada and Iran by selling transportation in its own name on flights operated by bmi between London, United Kingdom and Damascus, Syria and between London and Tehran, Iran, for such period as may be authorized by the Agency.

Air Canada has also requested an exemption from the application of subsection 8.2(2) of the Air Transportation Regulations (ATR), which requires the filing of an application for an approval at least 45 days before the first planned flight. 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(1)(c) of the Canada Transportation Act (CTA), exempts Air Canada from the application of subsection 8.2(2) of the ATR.

Under temporary Licence No. 090076, Air Canada is authorized to operate, through code-sharing only, an international air service on a scheduled basis between Canada and Syria.

Under temporary Licence No. 090077, Air Canada is authorized to operate, through code-sharing only, an international air service on a scheduled basis between Canada and Iran.

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 approvals requested, in light of the temporary nature of the licences, the Agency considers it appropriate to grant them until July 2, 2012.

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 bmi, and the provision by bmi of such aircraft and flight crew to Air Canada, to permit Air Canada to provide its scheduled international services on licensed routes between Canada and Syria and between Canada and Iran by selling transportation in its own name on flights operated by bmi between London and Damascus and between London and Tehran, from July 3, 2011 to July 2, 2012.

These approvals are 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 services approved shall only be provided as long as a code-sharing agreement providing for such service remains in effect.
4. Air Canada and bmi 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 bmi 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.

Members

• J. Mark MacKeigan
• Jean-Denis Pelletier, ing./P. Eng.