Decision No. 490-A-2010

December 1, 2010

File No. M4835-32-7

Société Air France carrying on business as Air France (Air France), on behalf of itself and Compass Airlines, LLC carrying on business as Compass Airlines and Delta Connection (Compass), has applied to the Canadian Transportation Agency (Agency) for an approval topermitAir Franceto provide its scheduled international service betweenCanadaandFrance via the United States of America, and between France and beyond Canada to the United States of America,by selling transportation in its own name on flights operated byCompass between the United States of America and Canada, for an indefinite period.

Air France has 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 France from the application of subsection 8.2(2) of the ATR.

Air France is licensed to operate a scheduled international service in accordance with the Agreement on Air Transport between Canada and the European Community and its Member States signed on December 18, 2009.

The Agency has considered the application and the material in support and is satisfied that it meets the remainingrequirementsof 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 France of aircraft and flight crew provided by Compass, and the provision by Compass of such aircraft and flight crew to Air France, to permit Air France to provide its scheduled international service on licensed routes between Canada and France via the United States of America, and between France and beyond Canada to the United States of America, by selling transportation in its own name on flights operated by Compass between the United States of America and Canada, for an indefinite period from the date of this Decision.

This approval is subject to the following conditions:

1. Air France shall continue to hold the valid licence authority.
2. Air France 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 France and Compass 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 France shall continue to comply with the public disclosure requirements set out in section 8.5 of the ATR.
6. The carriage of local traffic between points in Canada under Air France's name or on aircraft operated by Compass is prohibited.
7. Air France and Compass shall 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 exempt Air France and Compass from the requirements of other legislative acts or regulations, including those of Transport Canada.

Members

• Raymon J. Kaduck
• J. Mark MacKeigan