Decision No. 349-A-2007

July 6, 2007

File No. M4835-2-9

Air Canada, on behalf of itself and LOT, has applied to the Canadian Transportation Agency (hereinafter the Agency) for the approval set out in the title. The application was received on May 1, 2007.

Under Licence No. 975046, Air Canada is authorized to operate a scheduled international service, large aircraft, in accordance with the Agreement between the Government of Canada and the Government of the Republic of Poland on Air Transport initialled ad referendum on April 5, 2001 (hereinafter the Agreement).

Under Licence No. 985000, LOT is authorized to operate a scheduled international service in accordance with the Agreement.

The Agency notes that these applications are a renewal of the approval granted by Decision No. 360-A-2004 dated June 30, 2004.

Under the terms of the Agreement, code-sharing between designated airlines is permitted. That is, while providing services between Canada and Poland, the designated airlines may code share on each others' flights.

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.

With respect to the duration of the approval requested, in light of the provisions of the Agreement, the Agency considers that a period of three years would be appropriate.

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 LOT and its affiliates, and the provision by LOT and its affiliates of such aircraft and flight crew to Air Canada, to permit Air Canada to provide its scheduled international air service between Canada and Poland by selling transportation in its own name on flights operated by LOT and its affiliates between points in Canada and points in Poland, including segments between intermediate points and points in Poland and between domestic points in Poland.

Additionally, the Agency hereby approves the use by LOT of aircraft and flight crew provided by Air Canada and its affiliates, and the provision by Air Canada and its affiliates of such aircraft and flight crew to LOT, to permit LOT to provide its scheduled international air service between Poland and Canada by selling transportation in its own name on flights operated by Air Canada and its affiliates between points in Poland and points in Canada, including segments between intermediate points and points in Canada and between domestic points in Canada.

These approvals are granted until July 30, 2010 and are subject to the following conditions:

1. Air Canada and LOT 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 LOT providing for such services remains in effect.
3. Each carrier shall each 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 LOT's code between points in Canada.
5. No local traffic may be carried under Air Canada's code between points in Poland.

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

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

Members

• Raymon J. Kaduck
• John Scott