Decision No. 328-A-2004

June 15, 2004

June 15, 2004

APPLICATION by Air Canada, on behalf of itself and Air New Zealand Limited (hereinafter Air New Zealand) for an approval pursuant to section 60 of the Canada Transportation Act, S.C., 1996, c. 10, and section 8.2 of the Air Transportation Regulations, SOR/88-58, as amended, to permit Air Canada to provide its scheduled international service between Canada and New Zealand by selling transportation in its own name on flights operated by Air New Zealand between points in the United States of America and points in New Zealand, between points in Australia and points in New Zealand, and between domestic points in New Zealand; to permit Air Canada to provide its scheduled international service between Canada and Australia by selling transportation in its own name on flights operated by Air New Zealand between points in the United States of America and points in New Zealand, and between points in New Zealand and points in Australia; and to permit Air New Zealand to provide its scheduled international service between New Zealand and Canada by selling transportation in its own name on flights operated by Air Canada between points in the United States of America and points in Canada and between domestic points in Canada, for a period of three years commencing on the date of this Decision.

File No. M4835-2-35

Air Canada, on behalf of itself and Air New Zealand, has applied to the Canadian Transportation Agency (hereinafter the Agency) for the approvals set out in the title. The application was received on April 8, 2004.

Under Licence No. 980140, Air Canada is authorized to operate a scheduled international service in accordance with the Agreement between the Government of Canada and the Government of New Zealand on Air Transport, signed on September 4, 1985, as amended (hereinafter the Canada/New Zealand Agreement).

Under Licence No. 975133, Air New Zealand is authorized to operate a scheduled international service in accordance with the Canada/New Zealand Agreement.

Under Licence No. 000093, Air Canada is authorized to operate a scheduled international service in accordance with the Agreement between the Government of Canada and the Government of Australia relating to Air Services, signed on July 5, 1998, as amended (hereinafter the Canada/Australia Agreement).

The Agency notes that under the terms of the Canada/New Zealand and Canada/Australia Agreements and subject to normal regulatory requirements, Air Canada may sell transportation under its own code on flights operated by Air New Zealand. Air Canada may also carry traffic under the code of Air New Zealand. Additionally, and also subject to normal regulatory requirements, Air New Zealand may sell transportation under its own code on flights operated by Air Canada. Air New Zealand may also carry traffic under the code of Air Canada.

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.

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 Air New Zealand, and the provision by Air New Zealand of such aircraft and flight crew to Air Canada, to permit Air Canada to provide its scheduled international service between Canada and New Zealand by selling transportation in its own name on flights operated by Air New Zealand between points in the United States of America and points in New Zealand, between points in Australia and points in New Zealand, and between domestic points in New Zealand; to permit Air Canada to provide its scheduled international service between Canada and Australia by selling transportation in its own name on flights operated by Air New Zealand between points in the United States of America and points in New Zealand, and between points in New Zealand and points in Australia.

Additionally, the Agency hereby approves the use by Air New Zealand of aircraft and flight crew provided by Air Canada, and the provision by Air Canada of such aircraft and flight crew to Air New Zealand, to permit Air New Zealand to provide its scheduled international service between New Zealand and Canada by selling transportation in its own name on flights operated by Air Canada between points in the United States of America and points in Canada and between domestic points in Canada.

These approvals are effective for a period of three years commencing from the date of this Decision, and are subject to the following conditions:

  1. Air Canada and Air New Zealand shall continue to hold the required licence authorities.
  2. The air services approved herein shall only be provided as long as a code-sharing agreement between Air Canada and Air New Zealand providing for such services remains in effect.
  3. Each carrier shall apply its published tariff, 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.
  4. No local traffic may be carried under Air New Zealand's code between points in Canada.
  5. No local traffic may be carried under Air Canada's code between points in New Zealand.

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

Air Canada and Air New Zealand 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 approvals granted herein do not exempt Air Canada and Air New Zealand from the requirements of other legislative acts or regulations, including those of Transport Canada.

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