Decision No. 31-A-2007

January 19, 2007

File No. M4835-2-5

Air Canada, on behalf of itself and Lufthansa and its affiliates and subsidiaries, has applied to the Canadian Transportation Agency (hereinafter the Agency) for the approval set out in the title. The application was received on January 8, 2007.

The Agency notes that this application is for the renewal of part of the authority granted by Decision No. 112-A-2004 dated March 10, 2004.

Under Licence No. 990026, Air Canada is authorized to operate inter alia, a scheduled international service, large aircraft, in accordance with the Agreement between the Government of Canada and the Government of the Kingdom of the Netherlands relating to Air Transport signed on June 2, 1989, as amended (hereinafter the 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 Netherlands, the designated airlines may code share on each other's flights, or on flights operated by a carrier of a third country.

The Agency has reviewed and considered the application and the material filed in support thereof and is satisfied that it meets the requirements of section 8.2 of the ATR.

With respect to the duration of the approval requested, in light of the provisions of the Agreement, the Agency considers that a term of three years would be appropriate.

Accordingly, the Agency, pursuant to paragraph 60(1)(b) of the CTA and section 8.2 of the ATR, hereby approves the use by Air Canada of aircraft and flight crew provided by Lufthansa and its affiliates and subsidiaries and the provision by Lufthansa and its affiliates and subsidiaries of aircraft and flight crew to Air Canada, to permit Air Canada to provide its scheduled international service between Canada and the Netherlands, by selling transportation in its own name on flights operated by Lufthansa and its affiliates and subsidiaries between points in Germany and points in the Netherlands, from March 28, 2007 to March 27, 2010, subject to the following conditions:

1. Air Canada shall continue to hold the required licence authority.
2. Air Canada shall apply its published tariffs, on file with the Agency and in effect, to the carriage of its traffic. In particular, nothing in any commercial agreement between the carriers relating to limits of liability shall diminish the rights of passengers as stated in such tariffs.
3. The air service approved herein shall only be provided as long as a commercial agreement between Air Canada and Lufthansa providing for such services remain in effect.

Air Canada and Lufthansa and its affiliates and subsidiaries are reminded of the continuing requirement to comply with sections 8.2 and 8.5 of the ATR.

Air Canada and Lufthansa 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.

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

Members

• Mary-Jane Bennett
• Baljinder Gill