Decision No. 371-A-2010

September 2, 2010

File No.M4835-42-11

American Airlines, Inc. (American), on behalf of itself and American Eagle Airlines, Inc. (American Eagle) and Malev Hungarian Airlines (Malev), has applied to the Canadian Transportation Agency (Agency) for an approval to permit Malev to provide its scheduled international service between Hungary and Canada by selling transportation in its own name on flights operated by American and American Eagle between the United States of America and Canada.

Malev is licensed to operate a scheduled international service in accordance with the Agreement on Air Transport between Canada and the European Community and its Member States (Agreement).

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 Air Transportation Regulations (ATR).

With respect to the duration of the approval, the Agency considers three years to be appropriate.

Accordingly, the Agency, pursuant to paragraph 60(1)(b) of the Canada Transportation Act and section 8.2 of the ATR, approves the use by Malev of aircraft and flight crew provided by American and American Eagle, and the provision by American and American Eagle of such aircraft and flight crew to Malev, to permit Malev to provide its scheduled international service on licensed routes between Hungary and Canada by selling transportation in its own name on flights operated by American and American Eagle between the United States of America and Canada, from October 25, 2010 to October 24, 2013.

This approval is subject to the following conditions:

1. Malev shall continue to hold the valid licence authority.
2. Malev 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 service approved shall only be provided as long as a code-sharing agreement providing for such service remains in effect.
4. Malev, American and American Eagle 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. Malev shall continue to comply with the public disclosure requirements set out in section 8.5 of the ATR.
6. Malev and American 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 Malev's code on flights operated by American and American Eagle between the United States of America and Canada shall not be sold separately and shall only be available to traffic carried on a continuous journey under Malev's code between Hungary and Canada.

This approval does not exempt Malev, American and American Eagle from the requirements of other legislative acts or regulations, including those of Transport Canada.

Members

• Raymon J. Kaduck
• Jean-Denis Pelletier, P. Eng.