Decision No. 447-A-2010

October 28, 2010

File No. M4835-2-31

Air Canada, on behalf of itself and British Midland Airways Limited carrying on business as bmi (British Midland), has applied to the Canadian Transportation Agency (Agency) for an approval topermitAir Canadato provide its scheduled international service betweenCanadaandLebanonby selling transportation in its own name on flightsoperated by British Midland between London, United Kingdom and Beirut, Lebanon, commencing October 31, 2010.

Air Canadahas also requested an exemption from the application of subsection 8.2(2) of the Air Transportation Regulations (ATR), which requires the filing of an application for an approval at least 45 days before the first planned flight. 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(1)(c) of the Canada Transportation Act (CTA), exempts Air Canada from the application of subsection 8.2(2) of the ATR.

Air Canada holds a temporary licence to operate an international air service on a scheduled basis between Canada and Lebanon.

Condition No. 2 of Air Canada's licence states :

This licence shall terminate on February 15, 2011.

The Agency has considered the application and the material in support and is satisfied that it meets theremaining requirementsof section 8.2 of theATR.

Accordingly, the Agency, pursuant to paragraph 60(1)(b) of theCTA and section 8.2 of the ATR, approves the use by Air Canada of aircraft and flight crew provided by British Midland, and the provision by British Midland 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 Lebanon by selling transportation in its own name on flights operated by British Midland between London and Beirut, from October 31, 2010 to February 15, 2011.

This approval is subject to the following conditions:

1. Air Canada shall continue to hold the valid licence authority.
2. Air Canada 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 acode-sharing agreementproviding for such service remains in effect.
4. This approval does not apply to the carriage of cargo.
5. Air Canada and British Midland 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.
6. Air Canada shall continue to comply with the public disclosure requirements set out in section 8.5 of the ATR.
7. Air transportation using Air Canada's code on flights operated by British Midland between London and Beirut 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 Lebanon.
8. Air Canada and British Midland 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.

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

Members

• Raymon J. Kaduck
• J. Mark MacKeigan