Decision No. 296-A-2015

Air Canada also carrying on business as Air Canada rouge (Air Canada), on behalf of itself, TACA International Airlines, S.A. carrying on business as TACA Airlines and Avianca (TACA), its affiliate Aviateca S.A. (Aviateca), and Trans American Airlines S.A. carrying on business as TACA Peru (TACA Peru), has applied to the Canadian Transportation Agency (Agency) for an approval to permit Air Canada to provide its scheduled international services between Canada and each of the following countries: Paraguay and Peru, by selling transportation in its own name on flights operated by TACA, Aviateca and TACA Peru between Peru and Paraguay and between points within Peru.

Air Canada is licensed to operate a scheduled international service, large aircraft, in accordance with the Arrangement between the Government of Canada and the Government of the Republic of Paraguay set out in an Agreed Minute signed on December 12, 2012.

Air Canada is also licensed to operate a scheduled international service, large aircraft, in accordance with the Agreement between the Government of Canada and the Government of Peru for Air Services between and beyond their Respective Territories, signed on February 18, 1954.

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).

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 TACA, Aviateca and TACA Peru, and the provision by TACA, Aviateca and TACA Peru 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 each of the following countries: Paraguay and Peru, by selling transportation in its own name on flights operated by TACA, Aviateca and TACA Peru between Peru and Paraguay and between points within Peru, for an indefinite period from the date of this Decision.

This approval is subject to the following conditions:

1. Air Canada shall continue to hold the valid licence authorities.
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 services remains in effect.
4. Air Canada, TACA, Aviateca and TACA Peru 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, TACA and TACA Peru 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. Air transportation using Air Canada’s code on flights operated by TACA, Aviateca and TACA Peru between Peru and Paraguay and between points within Peru shall not be sold separately and shall only be available to traffic carried on a continuous journey under Air Canada’s code between Canada and each of the following countries: Paraguay and Peru. No local traffic may be carried under Air Canada’s code between Peru and Paraguay and between points within Peru.