Decision No. 539-A-2006

October 3, 2006

File No. M4835-37-2

Tarom, on behalf of itself and Austrian Airlines has applied to the Canadian Transportation Agency (hereinafter the Agency) for the authority and the approval set out in the title. The application was received on September 13, 2006.

The Agency notes that this application is a renewal of the approval and authority granted by Decision No. 249-A-2006 dated April 17, 2006.

Under Licence No.990062, Tarom is authorized to operate a scheduled international service in accordance with the Agreement between the Government of Canada and the Government of the Socialist Republic of Romania signed on October 27, 1983, as amended (hereinafter the Agreement).

Condition No. 1 of Licence No. 990062 states:

1. The Licensee is authorized to operate the route(s) set out in the Agreement.

The route set out in the Agreement covers the point Montréal only. Toronto is therefore not a point that may be served by Tarom.

Air Canada, the Canadian designated carrier for air services between Canada and Romania indicated its support for approval of the extra-bilateral authority.

The Agency may grant temporary authority pursuant to subsection 78(2) of the Canada Transportation Act (hereinafter the CTA) for a service which is not permitted in a bilateral air transport agreement.

The Agency has reviewed and considered the application and the material filed in support thereof.

Accordingly, the Agency, pursuant to subsection 78(2) of the CTA, hereby varies Condition No. 1 of Licence No. 990062 to the extent necessary to permit Tarom to serve the point Toronto, from October 29, 2006 to March 31, 2007. In all other respects, the services shall be operated in accordance with the Agreement.

The Agency notes that the application was filed less than 45 days before the first planned flight as required by subsection 8.2(2) of the Air Transportation Regulations (hereinafter the ATR), and therefore an exemption from the application of this provision is necessary. The Agency is of the opinion that compliance with subsection 8.2(2) of the ATR impractical in this case. Accordingly, pursuant to paragraph 80(l)(c) of the CTA, the Agency hereby orders that Tarom be exempt from the application of subsection 8.2(2) of the ATR.

Under the terms of the Agreement, code sharing between designated airlines and third-country carriers is permitted. That is, while providing services between Canada and Romania, the designated airlines may code share on each others' flights, or on flights operated by a carrier of a third country.

The Agency has reviewed and considered the application and the material filed in support thereof and is satisfied that it meets the remaining 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 Tarom of aircraft and flight crew provided by Austrian Airlines, and the provision by Austrian Airlines of such aircraft and flight crew to Tarom, to permit Tarom to provide its scheduled international service(s) on licensed routes between Romania and Canada by selling transportation in its own name on flights operated by Austrian Airlines between Austria and Canada, from October 29, 2006 to March 31, 2007, subject to the following conditions:

1. Tarom shall continue to hold the required licence authority.
2. Tarom shall apply its published tariff, on file with the Agency and 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 service approved herein shall only be provided as long as a code-sharing agreement providing for such services remains in effect.
4. Air transportation using Tarom's code on flights operated by Austrian Airlines between Austria and Canada shall not be sold separately and shall only be available to traffic carried on a continuous journey without stopover under Tarom's code between Romania and Canada.

Tarom and Austrian Airlines are reminded of the continuing requirement to comply with sections 8.2 and 8.5 of the ATR.

Tarom and Austrian Airlines 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 authority and the approval granted herein do not exempt Tarom and Austrian Airlines from the requirements of other legislative acts or regulations, including those of Transport Canada.

This Decision shall form part of Licence No. 990062 and shall remain affixed thereto as long as this Decision is in force.

Members

• Guy Delisle
• Baljinder Gill