Decision No. 403-A-2008

August 7, 2008

File No. M4835-2-51

Air Canada, on behalf of itself and Swiss International Air Lines Ltd. (Swiss) 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 7, 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.

Under Licence No. 975031, Air Canada is authorized to operate, among others, a scheduled international service, large aircraft, in accordance with the Agreement between the Government of Canada and the Government of Belgium on Air Transport signed on May 13, 1986 (the Agreement).

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.

With respect to the duration of the approval requested, in light of the provisions of the Agreement, the Agency considers that a term of three years would be appropriate.

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 Swiss and its affiliates and subsidiaries, and the provision by Swiss 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 Belgium by selling transportation in its own name on flights operated by Swiss and its affiliates and subsidiaries between Zurich and Brussels, from August 15, 2008 to August 14, 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 a code-sharing agreement between Air Canada and Swiss and its affiliates and subsidiaries, providing for such services remain in effect.
4. Air transportation using Air Canada's code on flights operated by Swiss and its affiliates and subsidiaries between Zurich and Brussels 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 Belgium.

Air Canada and Swiss 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 Swiss 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 Swiss and its affiliates and subsidiaries from the requirements of other legislative acts or regulations, including those of Transport Canada.

Members

• Raymon J. Kaduck
• J. Mark MacKeigan