Decision No. 319-A-2010

July 28, 2010

File No. M4835-2-33

Air Canada, on behalf of itself, Jazz and All Nippon and its affiliates, has applied to the Canadian Transportation Agency (Agency) for approvals to permit:

1. Air Canada to provide its scheduled international service between Canada and Japan by selling transportation in its own name on flights operated by All Nippon and its affiliates between points in the United States of America and points in Japan, and between domestic points in Japan; and
2. All Nippon to provide its scheduled international service between Japan and Canada by selling transportation in its own name on flights operated by Air Canada between points in Japan and points in Canada, and on flights operated by Air Canada and Jazz between points in the United States of America and points in Canada and between domestic points in Canada.

These approvals are requested for a period of three years commencing August 16, 2010, or such longer period as may be authorized by the Agency.

Air Canada and All Nippon are licensed to operate scheduled international services in accordance with the Agreement between the Government of Canada and the Government of Japan on Air Services, signed on January 12, 1955 (Agreement).

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 approvals requested, in light of the provisions of the Agreement, the Agency considers three years to be 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:

1. Air Canada of aircraft and flight crew provided by All Nippon and its affiliates, and the provision by All Nippon and its affiliates of such aircraft and flight crew to Air Canada, to permit Air Canada to provide its scheduled international service on licensed routes between Canada and Japan by selling transportation in its own name on flights operated by All Nippon and its affiliates between points in the United States of America and points in Japan and between domestic points in Japan; and
2. All Nippon of aircraft and flight crew provided by Air Canada and Jazz, and the provision by Air Canada and Jazz of such aircraft and flight crew to All Nippon, to permit All Nippon to provide its scheduled international service on licensed routes between Japan and Canada by selling transportation in its own name on flights operated by Air Canada between points in Japan and points in Canada, and on flights operated by Air Canada and Jazz between points in the United States of America and points in Canada and between domestic points in Canada.

These approvals are granted from August 16, 2010 to August 15, 2013 and are subject to the following conditions:

1. Air Canada and All Nippon shall continue to hold the valid licence authorities.
2. Air Canada and All Nippon shall apply their published tariffs, in effect, to the carriage of their 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, Jazz and All Nippon and its affiliates, 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 and All Nippon shall continue to comply with the public disclosure requirements set out in section 8.5 of the ATR.
6. Air Canada and All Nippon 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 All Nippon and its affiliates between the United States of America and Japan and between domestic points in Japan 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 Japan
8. Air transportation using All Nippon‘s code on flights operated by Air Canada and Jazz between the United States of America and Canada and between domestic points in Canada shall not be sold separately and shall only be available to traffic carried on a continuous journey under All Nippon‘s code between Japan and Canada.

These approvals do not exempt Air Canada, Jazz and All Nippon and its affiliates from the requirements of other legislative acts or regulations, including those of Transport Canada.

Members

• Raymon J. Kaduck
• J. Mark MacKeigan