Decision No. 524-A-2008
Amended by Decision No. 72-A-2009
October 16, 2008
APPLICATION by Air Canada, on behalf of itself and British Midland Airways Limited carrying on business as bmi, and its affiliates, pursuant to subsection 78(2) and 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 extra-bilateral authority and approval to permit Air Canada to provide its scheduled international service between Canada and Saudi Arabia by selling transportation in its own name on flights operated by British Midland Airways Limited carrying on business as bmi, and its affiliates, between London, United Kingdom and Jeddah, Saudi Arabia and between London and Riyadh, Saudi Arabia, for a period of one year or such longer period as may be authorized by the Canadian Transportation Agency, commencing October 26, 2008.
File No. M4835-2-31
Air Canada, on behalf of itself and British Midland Airways Limited carrying on business as bmi (British Midland), and its affiliates, has applied to the Canadian Transportation Agency (the Agency) for the authority and approval set out in the title. The application was complete on September 25, 2008.
Under Licence No. 080096, Air Canada is authorized to operate, among others, a scheduled international service, large aircraft, in accordance with the Agreement between the Government of Canada and the Government of the Kingdom of Saudi Arabia signed on November 14, 1990 (the Agreement).
Condition No. 2 of Licence No. 080096 reads as follows:
The operation of the scheduled international service authorized herein shall be conducted subject to the appropriate provisions of the Agreement and to any arrangements related thereto as may be agreed to between Canada and Saudi Arabia.
The Agency has reviewed and considered the application and the material filed in support thereof, and notes that the proposed code-sharing services are not provided for in the Agreement.
Air Canada is the only Canadian carrier designated to operate scheduled international air services between Canada and Saudi Arabia. Notice of the application was therefore not given to other parties.
In its consideration of this application, the Agency has determined that to operate as proposed, Condition No. 2 of Licence No. 080096 must be varied to allow for the provision of services not permitted under the Agreement.
With respect to the duration of the approval and the licence condition variance that would permit the operation of the proposed services, the Agency is prepared to grant approval and licence condition variance to Air Canada from October 26, 2008 to October 25, 2009.
Accordingly, the Agency, pursuant to subsection 78(2) of the CTA, varies Condition No. 2 of Licence No. 080096 to the extent necessary to authorize Air Canada to provide services between Canada and Saudi Arabia by selling transportation in its own name on flights operated by British Midland and its affiliates between London and Jeddah and between London and Riyadh, from October 26, 2008 to October 25, 2009.
With respect to the request for approval under section 60 of the CTA and section 8.2 of the ATR, the Agency is satisfied that the application 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 British Midland and its affiliates and the provision by British Midland and its affiliates, of such aircraft and flight crew to Air Canada, to permit Air Canada to provide its scheduled international service between Canada and Saudi Arabia by selling transportation in its own name on flights operated by British Midland and its affiliates between London and Jeddah and between London and Riyadh, from October 26, 2008 to October 25, 2009, subject to the following conditions:
- Air Canada shall continue to hold the required licence authority.
- Air Canada shall apply its published tariff, 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 tariff.
- The air services approved herein shall only be provided as long as a code-sharing agreement providing for such services remains in effect.
- Air transportation using Air Canada's code on flights operated by British Midland and its affiliates between London and Jeddah and between London and Riyadh 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 Saudi Arabia.
- The approval granted herein does not apply to the carriage of cargo.
Air Canada and British Midland and its affiliates are reminded of the continuing requirement to comply with sections 8.2 and 8.5 of the ATR.
Air Canada and British Midland are further reminded to provide the Agency with a copy of new agreement or any amendment to their commercial agreement, including any new or amended annex, without delay.
The authority and approval granted do not exempt Air Canada and British Midland and its affiliates from the requirements of other legislative acts or regulations, including those of Transport Canada.
This Decision shall form part of Licence No. 080096 and shall remain affixed thereto until October 25, 2009.
Members
- John Scott
- J. Mark MacKeigan
- Date modified: