Decision No. 406-A-2008

August 7, 2008

File No. M 4212/L80

Deutsche Lufthansa Aktiengesellschaft (Lufthansa German Airlines) [Lufthansa], on behalf of itself and LTU Lufttransport-Unternehmen GmbH carrying on business as LTU International Airways (LTU), has applied to the Canadian Transportation Agency (the Agency) for the approval set out in the title. The application was received on August 6, 2008.

Lufthansa filed this application pursuant to section 8.3 of the Air Transportation Regulations, SOR/88-58, as amended (ATR), due to an unforeseen labour strike. The Agency determined, however, that as Lufthansa meets the requirements of section 8.2 of the ATR, the application should be dealt with pursuant to section 60 of the Canada Transportation Act, S.C., 1996, c. 10, as amended (CTA) and section 8.2 of the ATR.

Under Licence No. 975118, Lufthansa is authorized to operate a scheduled international service in accordance with the Air Transport Agreement between the Government of Canada and the Government of the Federal Republic of Germany signed on March 26, 1973, as amended (Agreement).

The Agency notes that the application was filed less than 45 days before the first planned flight, as required by subsection 8.2(2) of the ATR, and, therefore, an exemption from the application of this provision is necessary. The Agency is of the opinion that compliance with subsection 8.2(2) of the ATR is impractical in this case. Accordingly, pursuant to paragraph 80(l)(c) of the CTA, the Agency orders that Lufthansa 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, approves the use by Lufthansa of aircraft and flight crew provided by LTU, and the provision by LTU of such aircraft and flight crew to Lufthansa, in order to permit Lufthansa to provide its scheduled international service between Dusseldorf and Toronto using aircraft and flight crew provided by LTU, from August 8 to 12, 2008, subject to the following conditions:

1. Lufthansa shall continue to hold the required licence authority.
2. Commercial control of the flights shall be maintained by Lufthansa. LTU shall maintain operational control of the flights and shall receive payment based on the rental of aircraft and crew and not on the basis of the volume of traffic carried or other revenue-sharing formula.

Lufthansa and LTU are reminded to advise the Agency in advance of any changes to the information provided in support of the subject application.

Lufthansa and LTU are further reminded of the continuing requirement to comply with sections 8.2 and 8.5 of the ATR.

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

Members

• Raymon J. Kaduck
• J. Mark MacKeigan