Decision No. 331-A-2016

Air Canada, on behalf of itself, Lufthansa and CityLine, has applied to the Canadian Transportation Agency (Agency) for an approval to permit Air Canada to provide its scheduled international services between Canada and each of the following countries: Kuwait, Jordan and Serbia by selling transportation in its own name on flights operated by Lufthansa and CityLine between Germany and each of the following countries: Kuwait, Jordan and Serbia, for a period of three years or such longer period as may be authorized by the Agency, beginning on October 28, 2016.

Air Canada is licensed to operate scheduled international services, using large and all-cargo aircraft, between Canada and each of the following countries: Kuwait and Jordan.

Air Canada is licensed to operate, through code sharing, a scheduled international service in accordance with the Agreement between the Government of Canada and the Government of the Republic of Serbia on Air Transport, initialled ad referendum on December 7, 2006.

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 ATR.

Accordingly, the Agency, pursuant to paragraph 60(1)(b) of the CTA and section 8.2 of the ATR, approves the use by Air Canada of aircraft with flight crew provided by Lufthansa and CityLine, and the provision by Lufthansa and CityLine of such aircraft and flight crew to Air Canada, to permit Air Canada to provide its scheduled international services on licensed routes between Canada and each of the following countries: Kuwait, Jordan and Serbia by selling transportation in its own name on flights operated by Lufthansa and CityLine between Germany and each of the following countries: Kuwait, Jordan and Serbia, for an indefinite period beginning on October 28, 2016.

This approval is subject to the following conditions:

1. Air Canada shall continue to hold the valid licence authorities.
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 services approved shall only be provided as long as a code-sharing agreement providing for such services remains in effect.
4. Air Canada, Lufthansa and CityLine 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 Lufthansa and CityLine 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 Lufthansa and CityLine between Germany and each of the following countries: Kuwait, Jordan and Serbia 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 each of the following countries: Kuwait, Jordan and Serbia.  No local traffic may be carried under Air Canada’s code between Germany and each of the following countries: Kuwait, Jordan and Serbia.