Decision No. 33-A-1998

January 30, 1997

File No. M4835-2-34

Docket No. 971657AG

Air Canada, on behalf of itself and Air New Zealand Limited (hereinafter Air New Zealand), has applied to the Canadian Transportation Agency (hereinafter the Agency) for the approval set out in the title. The application was received on December 17, 1997.

Under Licence No. 975133, Air New Zealand is authorized to operate a scheduled international service between Canada and New Zealand, in accordance with the Agreement between the Government of Canada and the Government of New Zealand on Air Transport signed on September 4, 1985.

The Agency gave notice of this application to Canadian Airlines International Ltd. carrying on business under the firm name and style of either Canadian Airlines International or Canadi*n (hereinafter Canadi*n), which is the Canadian carrier designated to provide air service between Canada and New Zealand. By facsimile dated January 22, 1998, Canadi*n advised the Agency that it has no objection to the extension of Air New Zealand's authority pursuant to section 60 of the Canada Transportation Act, and for the balance of the winter season, provided that Air Canada is not and will not be selling transportation in its own name on any of the flights covered by the arrangement. By facsimile dated January 26, 1998, Air Canada, on behalf of itself and Air New Zealand, responded to Canadi*n's comments. The Agency has reviewed Canadi*n's comments and the response filed by Air Canada and notes that Air Canada is not selling transportation in its own name on flights covered under this arrangement, that Air Canada is only providing aircraft and flight crew to Air New Zealand and that Air Canada is not holding itself out to the public as the carrier providing the service.

The Agency has reviewed and considered the application and the material filed in support thereof, as well as all pleadings, and is satisfied that it meets the requirements of section 8.2 of the Air Transportation Regulations (hereinafter the ATR).

With respect to the proposed duration of the approval, the Agency notes that Air Canada and Air New Zealand requested an approval until April 4, 1998, and that both air carriers have agreed to extend the aircraft lease agreement from January 31, 1998 to April 4, 1998.

Accordingly, the Agency, pursuant to paragraph 60(1)(b) of the Canada Transportation Act and section 8.2 of the ATR, hereby approves the use by Air New Zealand of aircraft and flight crew belonging to 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 service on the flight segment between Honolulu and Vancouver of Air New Zealand's scheduled international services between Canada and New Zealand for the period commencing on February 1, 1998 and ending on April 4, 1998, subject to the following conditions:

1. Air services shall be operated under the scheduled international licence of Air New Zealand (Licence No. 975133).
2. Commercial control of the flights shall be maintained by Air New Zealand. All ticketing, including boarding passes, shall clearly indicate that the service is provided by Air New Zealand.
3. Operational control of the flights shall be maintained by Air Canada which shall receive payment based on the rental of aircraft and crew and not on the basis of the volume of traffic carried.
4. Air Canada is prohibited from selling transportation in its own name on flights covered under the said arrangement.
5. Air New Zealand 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 two air carriers relating to limits of liability shall diminish the rights of passengers as stated in such tariffs.

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

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