Decision No. 412-A-2012

Scandinavian Airlines System (SAS) [SAS], on behalf of itself and Republic Airline Inc. carrying on business as Republic Airlines, US Airways Express, Frontier Airlines and United Express (Republic Airline), has applied to the Canadian Transportation Agency (Agency) for an approval to permit SAS to provide its scheduled international service between Norway and Canada by selling transportation in its own name on flights operated by Republic Airline between the United States of America and Canada, for a period of three years.

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 SAS from the application of subsection 8.2(2) of the ATR.

SAS is licensed to operate a scheduled international service in accordance with the Agreement between the Government of Canada and the Government of the Kingdom of Norway on Air Transport initialled, ad referendum, on February 17, 1989 (Agreement).

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.

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

Accordingly, the Agency, pursuant to paragraph 60(1)(b) of the CTA and section 8.2 of the ATR, approves the use by SAS of aircraft and flight crew provided by Republic Airline, and the provision by Republic Airline of such aircraft and flight crew to SAS, to permit SAS to provide its scheduled international service on licensed routes between Norway and Canada by selling transportation in its own name on flights operated by Republic Airline between the United States of America and Canada, for a period of three years from the date of this Decision.

This approval is subject to the following conditions:

1. SAS shall continue to hold the valid licence authority.
2. SAS 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 service approved shall only be provided as long as a code-sharing agreement providing for such service remains in effect.
4. SAS and Republic Airline 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. SAS shall continue to comply with the public disclosure requirements set out in section 8.5 of the ATR.
6. SAS and Republic Airline 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.