Decision No. 427-A-2008

An erratum was issued on September 4, 2008

August 19, 2008

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 complete 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.

Under Licence No. 975044, Air Canada is authorized to operate scheduled international services in accordance with the Agreement between the Government of Canada and the Government of the Hellenic Republic on Air Transport, signed on August 20, 1984 (the Agreement).

Under the terms of the Agreement, code-sharing between designated airlines and third-country carriers is permitted. That is, while providing services between Canada and Greece, the designated airlines may code share on each others' flights, or on flights operated by a carrier of a third country.

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 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 Greece by selling transportation in its own name on flights operated by Lufthansa and its affiliates and subsidiaries between Frankfurt and Athens, and between Munich and Athens, from September 2, 2008 to September 1, 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 Lufthansa and its affiliates and subsidiaries providing for such services remain in effect.

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 amendment 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