Decision No. 452-A-2012

Air Canada, on behalf of itself and South African Airways SOC Limited carrying on business as South African Airways (South African Airways), has applied to the Canadian Transportation Agency (Agency) for approvals to permit:

1. Air Canada to provide its scheduled international service between Canada and South Africa by selling transportation in its own name on flights operated by South African Airways between the member states of the European Community and each of Johannesburg and Cape Town, South Africa and between the United States of America and each of Johannesburg and Cape Town; and
2. South African Airways to provide its scheduled international service between South Africa and Canada by selling transportation in its own name on flights operated by Air Canada between member states of the European Community and each of Toronto, Ontario and Vancouver, British Columbia, Canada, and between the United States of America and each of Toronto and Vancouver.

These approvals are requested for an indefinite period.

Air Canada is licensed to operate a scheduled international service, large aircraft, in accordance with the Arrangement between the Government of Canada and the Government of the Republic of South Africa set out in an Agreed Minute, signed on July 8, 2009 (Arrangement).

South African Airways is licensed to operate a scheduled international service in accordance with the Arrangement.

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 approvals requested, in light of the provisions of the Arrangement, the Agency considers three years to be appropriate.

Accordingly, the Agency, pursuant to paragraph 60(1)(b) of the Canada Transportation Act (CTA) and section 8.2 of the ATR, approves the use by:

1. Air Canada to provide its scheduled international service on licensed routes between Canada and South Africa by selling transportation in its own name on flights operated by South African Airways between member states of the European Community and each of Johannesburg and Cape Town, and between the United States of America and each of Johannesburg and Cape Town; and
2. South African Airways to provide its scheduled international service on licensed routes between South Africa and Canada by selling transportation in its own name on flights operated by Air Canada between member states of the European Community and each of Toronto and Vancouver, and between the United States of America and each of Toronto and Vancouver.

These approvals are granted for a period of three years commencing the date of this decision are subject to the following conditions:

1. Air Canada and South African Airways shall continue to hold the valid licence authorities.
2. Air Canada and South African Airways shall apply their published tariffs, in effect, to the carriage of their 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 services approved shall only be provided as long as a code-sharing agreement providing for such services remains in effect.
4. Air Canada and South African Airways 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. Air Canada and South African Airways shall continue to comply with the public disclosure requirements set out in section 8.5 of the ATR.
6. Air Canada and South African Airways 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 Air Canada’s code on flights operated by South African Airways between member states of the European Community and each of Johannesburg and Cape Town, and between the United States of America and each of Johannesburg and Cape Town, shall not be sold separately and shall only be available to traffic carried on a continuous journey under Air Canada’s code between South Africa and Canada. No local traffic may be carried under Air Canada’s code between member states of the European Community and South Africa or between the United States of America and South Africa.
8. Air transportation using South African Airway’s code on flights operated by Air Canada between member states of the European Community and each of Toronto and Vancouver, and between the United States of America and each of Toronto and Vancouver, shall not be sold separately and shall only be available to traffic carried on a continuous journey under South African Airways’ code between Canada and South Africa. No local traffic may be carried under South African Airways’ code between member states of the European Community and Canada or between the United States of America and Canada.
9. These approvals do not apply to the carriage of cargo.