Decision No. 440-A-2010

October 22, 2010

File No. M4835-22-1

Qantas Airways Limited (Qantas), on behalf of itself, American Airlines, Inc. (American) and American Eagle Airlines, Inc. (American Eagle), has applied to the Canadian Transportation Agency (Agency) for an approval to permit Qantas to provide its scheduled international service between Australia and Canada by selling transportation in its own name on flights operated by American and American Eagle between New York, New York, United States of America and Halifax, Nova Scotia, Canada.

Qantas is licensed to operate a scheduled international service in accordance with the Agreement between the Government of Canada and the Government of Australia relating to Air Services signed on July 5, 1988 (Agreement).

The Agency has considered the application and the material in support and is satisfied that it meets the requirements of section 8.2 of the Air Transportation Regulations (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 Canada Transportation Act and section 8.2 of the ATR, approves the use by Qantas of aircraft and flight crew provided by American and American Eagle, and the provision by American and American Eagle of such aircraft and flight crew to Qantas, to permit Qantas to provide its scheduled international service on licensed routes between Australia and Canada by selling transportation in its own name on flights operated by American and American Eagle between New York and Halifax, from October 31, 2010 to October 30, 2013.

This approval is subject to the following conditions:

1. Qantas shall continue to hold the valid licence authority.
2. Qantas 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. Qantas, American and American Eagle 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. Qantas shall continue to comply with the public disclosure requirements set out in section 8.5 of the ATR.
6. Qantas, American and American Eagle 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 Qantas' code on flights operated by American and American Eagle between New York and Halifax shall not be sold separately and shall only be available to traffic carried on a continuous journey under Qantas' code between Australia and Canada. No local traffic may be carried under Qantas' code between New York and Halifax.

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

Members

• J. Mark MacKeigan
• Jean-Denis Pelletier, P. Eng.