Decision No. 31-A-2012

Air Canada, on behalf of itself and British Midland Airways Limited carrying on business as bmi (British Midland), has applied to the Canadian Transportation Agency (Agency) for an approval to permit Air Canada to provide its international air service on a scheduled basis between Canada and Lebanon by selling transportation in its own name on flights operated by British Midland between London, United Kingdom and Beirut, Lebanon, for a period of one year or such longer period as may be authorized by the Agency, commencing February 16, 2012.

Air Canada is licensed to operate, through code-sharing, an international service on a scheduled basis, using large aircraft, between Canada and Lebanon, until February 15, 2013.

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).

With respect to the duration of the approval requested, the Agency notes that the licence issued to Air Canada is in effect until February 15, 2013. Therefore, the Agency considers it appropriate to grant the approval until February 15, 2013.

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 British Midland, and the provision by British Midland of such aircraft and flight crew to Air Canada, to permit Air Canada to provide its international air service on a scheduled basis between Canada and Lebanon by selling transportation in its own name on flights operated by British Midland between London and Beirut, from February 16, 2012 to February 15, 2013.

This approval is 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 service approved shall only be provided as long as a code-sharing agreement providing for such service remains in effect.
4. Air Canada and British Midland 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 British Midland 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 British Midland between London and Beirut 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 Lebanon. No local traffic may be carried under Air Canada’s code between London and Beirut.
8. This approval does not apply to the carriage of cargo.