Decision No. 311-A-2002

June 7, 2002

File No. M4835-2-5

Docket No. 020685AG

Air Canada, on behalf of itself and Lufthansa, has applied to the Canadian Transportation Agency (hereinafter the Agency) for the approval set out in the title. The application was received on May 17, 2002.

Air Canada has also requested an exemption from the application of subsection 8.2(2) of the Air Transportation Regulations (hereinafter the ATR), which requires the filing of an application for an approval at least 45 days before the first planned flight.

Under Licence No. 975047, Air Canada is authorized to operate a scheduled international service in accordance with the Agreement between the Government of Canada and the Government of Finland for Air Services signed on May 28, 1990 (hereinafter the Agreement).

With respect to the request for an exemption from the application of subsection 8.2(2) of the ATR, the Agency has considered the request and is of the opinion that compliance by Air Canada with subsection 8.2(2) of the ATR is impractical in this case. Accordingly, the Agency, pursuant to paragraph 80(1)(c) of the Canada Transportation Act (hereinafter the CTA), hereby orders that Air Canada be exempt from the application of subsection 8.2(2) of the ATR.

With respect to the duration of the approval, the Agency notes that, by Decision No. 236-A-2001 dated May 11, 2001, Air Canada and Lufthansa were authorized to codeshare between Munich and Helsinki to March 27, 2004. The Agency is of the view that an approval of this application until March 27, 2004 will allow for the two applications to be combined in the future.

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

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 the provision by Lufthansa of such aircraft and flight crew to Air Canada, to permit Air Canada, while providing its scheduled international services on licensed routes between Canada and Finland in accordance with the Agreement, to sell transportation in its own name on flights operated by Lufthansa between Frankfurt, Germany and Helsinki, Finland from June 11, 2002 to March 27, 2004, 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 air 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 the Code Sharing Agreement between Air Canada and Lufthansa of March 22, 1996, as amended, providing for such services remains in effect.

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

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