Decision No. 39-A-2010

February 9, 2010

File No. M4835-2-32

Air Canada, on behalf of itself and Continental Airlines, Inc. (Continental), has applied to the Canadian Transportation Agency (Agency) for approvals to permit:

1. Air Canada to provide its scheduled international service between Canada and Switzerland by selling transportation in its own name on flights operated by Continental; and
2. Continental to provide its scheduled international service between the United States of America and Switzerland by selling transportation in its own name on flights operated by Air Canada.

It is noted that in its Decision No. 454-A-2009, the Agency granted an indefinite approval to Air Canada to code share by using aircraft and flight crew provided by Continental and its regional and affiliated carriers between points in Canada and points in the United States of America and granted an indefinite approval to Continental to code share by using aircraft and flight crew provided by Air Canada and Jazz Air LP, as represented by its general partner, Jazz Air Holding GP Inc. carrying on business as Air Canada Jazz, Jazz and Jazz Air between points in the United States of America and points in Canada.

The approvals requested would allow Air Canada to provide additional services between Canada and Switzerland by code sharing and would allow Continental to provide additional services between the United States of America and Switzerland by code sharing.

Air Canada is licensed to operate a scheduled international service in accordance with the Air Transport Agreement between Canada and the Swiss Confederation, signed on February 20, 1975 (Canada-Switzerland Agreement).

Under the terms of the Canada-Switzerland Agreement, code sharing between the designated carriers and third-country carriers is permitted. That is, while providing services between Canada and Switzerland, the designated airlines may code share on flights operated by a carrier of a third country.

Air Canada is licensed to operate a scheduled international service between Canada and the United States of America and beyond to third countries in accordance with the Air Transport Agreement between the Government of Canada and the Government of the United States of America signed on March 12, 2007 (Canada-United States Agreement).

Continental is licensed to operate a scheduled international service between Canada and the United States of America in accordance with the Canada-United States Agreement. The licence also authorizes Continental to provide services beyond Canada to, among others, points in Switzerland with traffic rights.

The Agency has reviewed and 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 approvals requested, the Agency has considered this matter and finds it appropriate to grant the approvals for three years only at this time.

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 Air Canada of aircraft and flight crew provided by Continental, and the provision by Continental of such aircraft and flight crew to Air Canada, to permit Air Canada to provide its scheduled international service on licensed routes between Canada and Switzerland, by selling transportation in its own name on flights operated by Continental.

In addition, the Agency approves the use by Continental of aircraft and flight crew provided by Air Canada, and the provision by Air Canada of such aircraft and flight crew to Continental, to permit Continental to provide its scheduled international service between the United States of America and Switzerland by selling transportation in its own name on flights operated by Air Canada.

These approvals are granted for a period of three years from the date of this Decision, subject to the following conditions:

1. Air Canada and Continental shall continue to hold the required licence authorities.
2. Each of Air Canada and Continental 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.

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

Air Canada and Continental 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.

These approvals do not exempt Air Canada and Continental from the requirements of other legislative acts or regulations, including those of Transport Canada.

Members

• J. Mark MacKeigan
• Jean-Denis Pelletier, P. Eng.