Decision No. 36-A-2003

January 24, 2003

File No. M4835-2-28Docket No. 021490AG

Air Canada, on behalf of itself and United Air Lines Inc. (hereinafter United), has applied to the Canadian Transportation Agency (hereinafter the Agency) for the approval set out in the title. The application was received on December 10, 2002.

Under Licence No. 980183, Air Canada is authorized to operate a scheduled international service in accordance with the Agreement between the Government of Canada and the Government of the United Mexican States on Air Transport signed on December 21, 1961, as amended (hereinafter the Agreement).

The Agency notes that Air Canada and United already hold approval by the Agency to code share on each other's services between points in Canada and points in the United States of America and that the approval requested would allow Air Canada to provide additional service between Canada and Mexico by selling transportation in its own name on United's flights between the United States of America and Mexico.

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 belonging to United, and the provision by United of such aircraft and flight crew to Air Canada to permit Air Canada, while providing its scheduled international service between Canada and Mexico, to sell transportation in its own name on flights operated by United between points in the United States of America and points in Mexico, as part of a continuous journey under Air Canada's code between points in Canada and points in Mexico, from January 25, 2003 until January 24, 2006, subject to the following conditions:

1. Air Canada shall continue to hold the required licence authority.
2. Air transportation using Air Canada's code on United's flights between points in the United States of America and Mexico shall not be sold separately and shall only be available to Air Canada's traffic carried on a continuous journey between Canada and Mexico.
3. Air Canada shall apply its published tariffs, on file with the Agency and in effect, to the carriage of its traffic between Canada and Mexico. 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.

Air Canada and United 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 United from the requirements of other legislative acts or regulations, including those of Transport Canada.