Decision No. 390-A-2008

July 31, 2008

July 31, 2008

APPLICATION by Air Canada, on behalf of itself and Deutsche Lufthansa Aktiengesellschaft (Lufthansa German Airlines) and its affiliates and subsidiaries, pursuant to section 60 of the Canada Transportation Act, S.C., 1996, c. 10, as amended, and section 8.2 of the Air Transportation Regulations, SOR/88-58, as amended, for an approval to permit Air Canada to provide its scheduled international service between Canada and Romania by selling transportation in its own name on flights operated by Deutsche Lufthansa Aktiengesellschaft (Lufthansa German Airlines) and its affiliates and subsidiaries between Frankfurt, Germany and Bucharest, Romania, from August 4, 2008 to August 3, 2011.

File No. M4835-2-5


Air Canada, on behalf of itself and Deutsche Lufthansa Aktiengesellschaft (Lufthansa German Airlines) (Lufthansa) and its affiliates and subsidiaries, has applied to the Canadian Transportation Agency (the Agency) for the approval set out in the title. The application was received on July 10, 2008.

Air Canada has also requested an exemption from the application of subsection 8.2(2) of the Air Transportation Regulations (the ATR), which requires the filing of an application for an approval at least 45 days before the first planned flight.

The Agency notes that this application is a renewal of the approval granted by Decision No. 428-A-2005 dated July 7, 2005.

Under Licence No. 990067, Air Canada is authorized to operate, among others, a scheduled international service, medium aircraft and a scheduled international service, large aircraft, in accordance with the Agreement between the Government of Canada and the Government of the Socialist Republic of Romania on Civil Air Transport signed on October 27, 1983.

Under the terms of the 1999 exchange of letters between Romania and Canada, Air Canada is permitted to code share on flights operated by a carrier of a third country.

With respect to the request for an exemption from the application of subsection 8.2(2) of the ATR, the Agency has considered the request and is of the opinion that compliance by with subsection 8.2(2) of the ATR is impractical in this case. Accordingly, the Agency, pursuant to paragraph 80(1)(c) of the Canada Transportation Act (the CTA), hereby orders that Air Canada be exempt from the application of subsection 8.2(2) of the ATR.

The Agency has reviewed and considered the application and the material filed in support thereof and is satisfied that it meets the remaining 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 provided by Lufthansa and its affiliates and subsidiaries, and the provision by Lufthansa and its affiliates and subsidiaries 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 Romania by selling transportation in its own name on flights operated by Lufthansa and its affiliates and subsidiaries between Frankfurt and Bucharest, from August 4, 2008 to August 3, 2011, subject to the following conditions:

  1. Air Canada shall continue to hold the required licence authority.
  2. Air Canada shall apply its published tariffs, 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.
  3. The air services approved herein shall only be provided as long as the 1999 exchange of letters between Romania and Canada, by which Air Canada is permitted to operate third country carrier code-sharing services, and a code-sharing agreement between Air Canada and Lufthansa and its affiliates and subsidiaries, providing for such services remain in effect.
  4. Air transportation using Air Canada's code on flights operated by Lufthansa and its affiliates and subsidiaries between Frankfurt and Bucharest 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 Romania.

Air Canada and Lufthansa and its affiliates and subsidiaries are reminded of the continuing requirement to comply with sections 8.2 and 8.5 of the ATR.

Air Canada and Lufthansa and its affiliates and subsidiaries 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 approval granted herein does not exempt Air Canada and Lufthansa and its affiliates and subsidiaries from the requirements of other legislative acts or regulations, including those of Transport Canada.

Members

  • Raymon J. Kaduck
  • John Scott
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