Decision No. 473-A-2010

November 15, 2010

File No. M4835-2-60

Air Canada, on behalf of itself and Brussels Airlines N.V./S.A. carrying on business as Brussels Airlines (Brussels Airlines), has applied to the Canadian Transportation Agency (Agency) for an approval to permit Air Canada to provide its international service on a scheduled basis between Canada and Senegal by selling transportation in its own name on flights operated by Brussels Airlines between Belgium and Senegal, for a period of one year or for such longer period as may be authorized by the Agency, commencing on November 15, 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 is licensed to, among others,operate, through code-sharing, an international service on a scheduled basis between Canada and Senegal using large aircraft, until November 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.

With respect to the duration of the approval requested, as the licence authority to serve Senegal expires on November 15, 2011, the Agency is of the opinion that it would be inappropriate to consider granting the requested approval beyond the expiry date of the licence.

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 Air Canada of aircraft and flight crew provided by Brussels Airlines, and the provision by Brussels Airlines of such aircraft and flight crew to Air Canada, to permit Air Canada to provide its international service on a scheduled basis on licensed routes between Canada and Senegal using large aircraft by selling transportation in its own name on flights operated by Brussels Airlines between Belgium and Senegal, from the date of this Decision until November 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. Air Canada and Brussels Airlines 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 Canadashall continue to comply with the public disclosure requirements set out in section 8.5 of the ATR.
6. Air transportation using Air Canada's code on flights operated byBrussels Airlinesbetween Belgium and Senegal 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 Senegal.
7. Air Canada and Brussels Airlinesshall provide the Agency with a copy of any new agreement or amendments to theircode-sharing agreement, including any new or amended annex, without delay.

This approval does not exemptAir Canada and Brussels Airlinesfrom the requirements of other legislative acts or regulations, including those of Transport Canada.

Members

• Raymon J. Kaduck
• J. Mark MacKeigan