Decision No. 484-A-2002

An erratum was issued on August 29, 2002

August 29, 2002

File No. M4835-2-31Docket No. 020882AG

Air Canada, on behalf of itself and British Midland, has applied to the Canadian Transportation Agency (hereinafter the Agency) for the approval set out in the title. Approval is requested for a period of two years or such longer period as may be authorized by the Agency. The application was received on July 16, 2002.

Under Licence No. 020110, British Midland is authorized to operate a scheduled international service on the route(s) set out in the Agreement between the Government of the United Kingdom of Great Britain and Northern Ireland and the Government of Canada on Air Services signed on June 22, 1988 (hereinafter the Agreement).

Under Licence No. 975038, Air Canada is authorized to operate a scheduled international service on the route(s) set out in the Agreement.

With respect to the duration of the approval requested, the Agency notes that no specific code-share provisions have been added to the Agreement. However, the Agency further notes that previous code-share arrangements between Air Canada and British Midland have been approved for periods of up to three years. Under these circumstances, the Agency is not prepared to consider approval for a period longer than three years.

The Agency has reviewed and considered the application and the material filed in support thereof and is satisfied that it meets the requirements of section 8.2 of the Air Transportation Regulations (hereinafter the ATR).

Accordingly, the Agency, pursuant to paragraph 60(1)(b) of the CTA and section 8.2 of the ATR, hereby approves the use by British Midland of aircraft and flight crew provided by Air Canada, and the provision by Air Canada of such aircraft and flight crew to British Midland, to permit British Midland to provide its scheduled international service between Canada and the United Kingdom by selling transportation in its own name on flights operated by Air Canada between points in Canada and points in the United Kingdom including flights operated by Air Canada between points in Canada. The approval is granted for the period from September 3, 2002 to September 2, 2005, subject to the following conditions:

1. British Midland shall continue to hold the required licence authority.
2. British Midland shall apply its published tariffs, on file with the Agency and in effect, to the carriage of its traffic. In particular, nothing in any commercial agreement between the carriers relating to limits of liability shall diminish the rights of passengers as stated in such tariffs.
3. The air service approved herein shall only be provided as long as a commercial agreement between British Midland and Air Canada, on file with the Agency and providing for such services, remains in effect.
4. Air transportation using British Midland's code on flights between points in Canada shall be available only as part of a continuous journey under British Midland's code between the United Kingdom and Canada. No local traffic may be carried under British Midland's code between points in Canada.

Air Canada and British Midland are reminded to provide the Agency with a copy of any amendments to the code-share agreement or its annexes and/or appendices upon provisional or definitive entry into force.

Air Canada and British Midland are reminded of the continuing requirement to comply with sections 8.2 and 8.5 of the ATR.

It should be noted that the authority granted herein does not exempt Air Canada and British Midland from the requirements of other legislative acts or regulations, including those of Transport Canada.