Decision No. 503-A-2010

December 16, 2010

APPLICATION by Air Canada, on behalf of itself and Air China Limited, for approvals 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.

File No. M4835-2-39

Air Canada, on behalf of itself and Air China Limited (Air China), has applied to the Canadian Transportation Agency (Agency) for approvals to permit:

1. Air Canada to provide its scheduled international service between Canada and China by selling transportation in its own name on flights operated by Air China between points in Canada and points in China; and
2. Air China to provide its scheduled international service between China and Canada by selling transportation in its own name on flights operated by Air Canada between points in China and points in Canada.

These approvals are requested for a period of three years or for such longer period as may be authorized by the Agency.

Air Canada and Air China are licensed to operate scheduled international services in accordance with the Agreement between the Government of Canada and the Government of the People's Republic of China on Air Transport signed on September 9, 2005 (Agreement).

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 Agreement, 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 of aircraft and flight crew provided by Air China, and the provision by Air China 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 China by selling transportation in its own name on flights operated by Air China; and
2. Air China of aircraft and flight crew provided by Air Canada, and the provision by Air Canada of such aircraft and flight crew to Air China, to permit Air China to provide its scheduled international service on licensed routes between China and Canada by selling transportation in its own name on flights operated by Air Canada.

These approvals are granted from the date of this Decision to December 15, 2013, and are subject to the following conditions:

1. Air Canada and Air China shall continue to hold the valid licence authorities.
2. Air Canada and Air China 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 Air China 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 Air China shall continue to comply with the public disclosure requirements set out in section 8.5 of the ATR.
6. Air Canada and Air China 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 Air China between points in China 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 China.
8. Air transportation using Air China's code on flights operated by Air Canada between points in Canada shall not be sold separately and shall only be available to traffic carried on a continuous journey under Air China's code between China and Canada. No local traffic may be carried under Air China's code between points in Canada.

These approvals do not exempt Air Canada and Air China from the requirements of other legislative acts or regulations, including those of Transport Canada.

Members

• Raymon J. Kaduck
• J. Mark MacKeigan