Decision No. 507-A-1999

August 31, 1999

File No. M4835-2-5

Docket No. 990869AG

Air Canada, on behalf of itself and Deutsche Lufthansa Aktiengesellschaft (Lufthansa German Airlines) (hereinafter Lufthansa), has applied to the Canadian Transportation Agency (hereinafter the Agency) for the approval set out in the title. The application was received on August 10, 1999. The proposed code share operation would be an extension of Air Canada's existing Canada-Germany services.

Air Canada and Lufthansa have also requested an exemption from the application of subsection 8.2(2) of the Air Transportation Regulations (hereinafter the ATR), which requires the filing of an application for an approval at least 45 days before the first planned flight.

Under Licence No. 975044, Air Canada is authorized to operate a scheduled international service in accordance with the Air Transport Agreement between the Government of Canada and the Government of the Hellenic Republic signed on August 20, 1984.

With respect to the request for an exemption from the application of subsection 8.2(2) of the ATR, the Agency has considered the request and is of the opinion that compliance by Air Canada and Lufthansa 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 (hereinafter the CTA), hereby orders that Air Canada and Lufthansa be exempt from the application of subsection 8.2(2) of the ATR.

The Agency has reviewed and considered the application and the material in support thereof and is satisfied that it meets the requirements of section 8.2 of 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 Air Canada of aircraft and flight crew provided by Lufthansa and the provision of such aircraft and flight crew by Lufthansa to Air Canada to permit Air Canada, while providing its scheduled international services between Canada and Greece, to sell transportation in its own name and apply its own code on flights operated by Lufthansa between Frankfurt, Germany and Athens, Greece. This approval is granted for the period from September 2, 1999 to September 1, 2002 subject to the following conditions:

1. Air Canada and Lufthansa shall continue to hold the appropriate licence authorities.
2. Air Canada and Lufthansa shall apply their published tariffs, on file with the Agency and in effect, to the carriage of their traffic. In particular, nothing in any commercial agreement between the two air carriers relating to limits of liability shall diminish the rights of passengers as stated in such tariffs.

Air Canada and Lufthansa are reminded to advise the Agency in advance of any changes to the information provided in support of the subject application.

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

The approval granted herein does not exempt Air Canada and/or Lufthansa from the requirements of other legislative acts or regulations, including those of Transport Canada.