Decision No. 30-A-2010

February 4, 2010

File No. M4835-2-28

Air Canada, on behalf of itself and United Air Lines, Inc. (United), has applied to the Canadian Transportation Agency (Agency) for an approval to permit Air Canada to provide its scheduled international service between Canada and the United Arab Emirates by selling transportation in its own name on flights operated by United between points in the United States of America and points in the United Arab Emirates.

It is noted that the Agency granted an indefinite approval to Air Canada to code share by using aircraft and flight crew provided by United and United Express carriers between points in Canada and points in the United States of America and granted an indefinite approval to United to code share by using aircraft and flight crew provided by Air Canada and Jazz Air LP, as represented by its general partner, Jazz Air Holding GP Inc. carrying on business as Air Canada Jazz, Jazz and Jazz Air between points in the United States of America and points in Canada. These approvals were granted in Decision No. 689-A-2000, varied by Decision No. 196-A-2008, and in Decision No. 205-A-2002, Decision No. 731-A-2005, Decision No. 732-A-2005 and Decision No. 548-A-2007.

The approval requested would allow Air Canada to provide additional services between Canada and the United Arab Emirates via the United States of America by code sharing on United.

Air Canada is licensed to operate a scheduled international service in accordance with the Agreement between the Government of Canada and the Government of the United Arab Emirates on Air Transport, signed on June 17, 2001 (Agreement).

Under the terms of the agreement, code sharing between designated airlines and third-country carriers is permitted. That is, while providing services between Canada and the United Arab Emirates, designated airlines may code share on flights operated by a carrier of a third country.

The Agency has reviewed and 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, in light of the provisions of the Agreement, the Agency considers a term of three years appropriate.

Accordingly, the Agency, pursuant to paragraph 60(1)(b) of the Canada Transportation Act (CTA) and section 8.2 of the ATR, approves the use by Air Canada of aircraft and flight crew provided by United, and the provision by United of such aircraft and flight crew to Air Canada, to permit Air Canada to provide its scheduled international service between Canada and the United Arab Emirates by selling transportation in its own name on flights operated by United between points in the United States of America and points in the United Arab Emirates, for a period of three years from the date of this Decision, subject to the following conditions:

1. Air Canada shall continue to hold the required 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 services remains in effect.
4. The approval granted does not apply to the carriage of cargo.

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

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

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

Members

• John Scott
• J. Mark MacKeigan