Decision No. 28-A-1999

January 25, 1999

File No. M4835-2-28

Docket No. 990023AG

Air Canada, on behalf of itself and United Airlines, Inc. (hereinafter United), has applied to the Canadian Transportation Agency (hereinafter the Agency) for the approval set out in the title. The application was received on January 6, 1999.

Under Licence No. 980183, Air Canada is authorized to operate a scheduled international service in accordance with the Agreement between the Government of Canada and the Government of the United Mexican States on Air Transport signed on December 21, 1961 (hereinafter the Agreement).

Condition No. 1 of Licence No. 980183 reads, in part, as follows:

Subject to any approval that is required pursuant to section 60 of the CTA and any applicable provisions of the ATR, the Licensee is authorized to operate the route set out in Section 1 of Part (A) Route Schedule for Code-Share Services of the Memorandum of Understanding between the Government of Canada and the Government of the United Mexican States which provisionally entered into force on October 15, 1998.

Condition No. 2 of Licence No. 980183 reads as follows:

The scheduled international service authorized herein must be operated via an intermediate point until June 2, 1999.

The Agency notes that Air Canada and United already hold approval by the Agency to code share on each other's services between points in Canada and points in the United States of America, and that the approval requested would allow Air Canada to provide service between Canada and Mexico by applying its code and selling transportation in its own name on United's flights between the United States of America and Mexico.

The Agency has reviewed and considered the application and the material filed in support thereof, and is satisfied that it meets the requirements set out in 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 belonging to United, and the provision by United of such aircraft and flight crew to Air Canada to permit Air Canada, while providing its scheduled international service between Canada and Mexico, to sell transportation in its own name and apply its own code on flights operated by United between points in the United States of America and points in Mexico, as part of a continuous journey under Air Canada's code, for a period of two years from the date of this Decision, subject to the following conditions:

1. Air Canada and United shall continue to hold the required licence authorities.
2. Air transportation using Air Canada's code on United's flights between points in the United States of America and points in Mexico shall not be sold separately and shall only be available to Air Canada's traffic carried on a continuous journey between Canada and Mexico.
3. Air Canada shall apply its published tariffs, on file with the Agency and in effect, to the carriage of its traffic between Canada and Mexico. In particular, nothing in any commercial agreement between the two air carriers relating to limits of liability shall diminish the rights of passengers as stated in such tariffs.

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

The approval granted herein does not exempt Air Canada and United from the requirements of other legislative acts or regulations, including those of Transport Canada.