Decision No. 487-A-2008

September 25, 2008

September 25, 2008

APPLICATION by Air Canada, on behalf of itself and TAM -Linhas Aéreas S.A. carrying on business as TAM Airlines, and Jazz Air LP, pursuant to section 60 of the Canada Transportation Act, S.C., 1996, c. 10, as amended, and section 8.2 of the Air Transportation Regulations, SOR/88-58, as amended, for approval to permit Air Canada to provide its scheduled international service(s) between Canada and Brazil by selling transportation in its own name on flights operated by TAM - Linhas Aéreas S.A. carrying on business as TAM Airlines between points in Brazil; and to permit TAM - Linhas Aéreas S.A. carrying on business as TAM Airlines to provide its scheduled international service(s) between Canada and Brazil by selling transportation in its own name on flights operated by Air Canada between points in Canada and points in Brazil, and on flights operated by Air Canada and Jazz Air LP between points in Canada, for a period of three years or such longer period as may be authorized by the Canadian Transportation Agency, beginning October 4, 2008.

File No. M4835-2-58

Air Canada, on behalf of itself and TAM - Linhas Aéreas S.A. carrying on business as TAM Airlines (TAM), and Jazz Air LP, has applied to the Canadian Transportation Agency (the Agency) for the approvals set out in the title. The application was complete on September 3, 2008.

Under Licence No. 000143, Air Canada is authorized to operate a scheduled international service in accordance with the Agreement between the Government of Canada and the Government of the Federative Republic of Brazil on Air Transport, signed on May 15, 1986 (the Agreement).

Under Licence No. 080085, TAM is authorized to operate a scheduled international service in accordance with the Agreement.

Under the terms of the Agreement, code sharing between designated airlines is permitted. That is, while providing services between Canada and Brazil, the designated airlines may code share on each other's flights.

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 (the ATR).

With respect to the duration of the approvals requested, in light of the provisions of the Agreement, the Agency considers that a term of three years would be appropriate.

Accordingly, the Agency, pursuant to paragraph 60(1)(b) of the Canada Transportation Act and section 8.2 of the ATR, hereby approves the use by Air Canada of aircraft and flight crew provided by TAM, and the provision by TAM 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 Brazil by selling transportation in its own name on flights operated by TAM between points in Brazil.

In addition, the Agency hereby approves the use by TAM of aircraft and flight crew provided by Air Canada and Jazz Air LP, and the provision by Air Canada and Jazz Air LP of such aircraft and flight crew to TAM, to permit TAM to provide its scheduled international service on licensed routes between Canada and Brazil by selling transportation in its own name on flights operated by Air Canada between points in Canada and points in Brazil, and on flights operated by Air Canada and Jazz Air LP between points in Canada.

These approvals are granted from October 4, 2008, to October 3, 2011, and are subject to the following conditions:

  1. Air Canada, Jazz Air LP and TAM shall continue to hold the required licence authorities.
  2. Each carrier shall apply its published tariffs, in effect, to the carriage of its traffic. In particular, 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 herein shall only be provided as long as a code-sharing agreement providing for such services remains in effect.
  4. Air transportation using Air Canada's code on flights operated by TAM between points in Brazil 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 Brazil. No local traffic may be carried under Air Canada's code between points in Brazil.
  5. Air transportation using TAM's code on flights operated by Air Canada and Jazz Air LP between points in Canada shall not be sold separately and shall only be available to traffic carried on a continuous journey under TAM's code between Canada and Brazil. No local traffic may be carried under TAM's code between points in Canada.

Air Canada, Jazz Air LP and TAM are reminded of the continuing requirement to comply with sections 8.2 and 8.5 of the ATR.

Air Canada, Jazz Air LP and TAM are further reminded to provide the Agency with a copy of any new agreement or amendments to their commercial agreement, including any new or amended annex, without delay.

The approvals granted herein do not exempt Air Canada, Jazz Air LP and TAM from the requirements of other legislative acts or regulations, including those of Transport Canada.

Members

  • Raymon J. Kaduck
  • J. Mark MacKeigan
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