Decision No. 402-A-2011

United Air Lines, Inc. (United), on behalf of itself, United Express carriers (United Express) and Air Canada, has applied to the Canadian Transportation Agency (Agency) for an approval to permit Air Canada to provide its scheduled international services between Canada and Mexico by selling transportation in its own name on flights operated by United and United Express between the United States of America and Mexico, for an indefinite period.

As the application was filed less than 45 days before the first planned flight, as required by subsection 8.2(2) of the Air Transportation Regulations (ATR), an exemption from the application of this provision is necessary. The Agency finds that compliance with subsection 8.2(2) of the ATR is impractical in this case. Accordingly, the Agency, pursuant to paragraph 80(l)(c) of the Canada Transportation Act (CTA), exempts from the application of subsection 8.2(2) of the ATR.

Air Canada is licensed to operate scheduled international services in accordance with the Air Transport Agreement between the Government of Canada and the Government of the United Mexican States signed on December 21, 1961, as amended.

The Agency has considered the application and the material in support 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, approves the use by Air Canada of aircraft and flight crew provided by United and United Express, and the provision by United and United Express of such aircraft and flight crew to Air Canada, to permit Air Canada to provide its scheduled international services on licensed routes between Canada and Mexico by selling transportation in its own name on flights operated by United and United Express between the United States of America and Mexico, for an indefinite period from the date of this Decision.

This approval is subject to the following conditions:

1. Air Canada shall continue to hold the valid licence authority.
2. Air Canada 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.
4. Air Canada, United and United Express 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. Air Canada shall continue to comply with the public disclosure requirements set out in section 8.5 of the ATR.
6. Air Canada and United 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 Air Canada’s code on flights operated by United and United Express between the United States of America and Mexico 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 Mexico.

In Decision No. 23-A-2009, Air Canada was granted an approval to provide its scheduled international services between Canada and Mexico using aircraft and flight crew provided by United, from January 25, 2009 to January 24, 2012. As a result of the approval granted in this Decision, that Decision is now redundant.

Accordingly, the Agency, pursuant to section 32 of the CTA, rescinds Decision No. 23-A-2009.