Decision No. 56-A-2007

February 5, 2007

File No. M4835-23-1

American Airlines, Inc. (hereinafter American Airlines), on behalf of itself, American Eagle Airlines, Inc. (hereinafter American Eagle) and Japan Airlines, has applied to the Canadian Transportation Agency (hereinafter the Agency) for the approval set out in the title. The application was received on January 31, 2007.

The Agency notes that this application is a renewal of the approval granted by Decision No. 64-A-2004 dated February 6, 2004.

Under Licence No. 985001, Japan Airlines is authorized to operate a scheduled international service in accordance with the Agreement between Canada and Japan for Air Service signed on January 12, 1955, as amended (hereinafter the Agreement).

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 Japan, the designated airlines may code share on each other's flights, or on flights operated by a carrier of a third country.

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 is impractical in this case. Accordingly, pursuant to paragraph 80(l)(c) of the Canada Transportation Act (hereinafter the CTA), the Agency hereby orders that American Airlines be exempt from the application of subsection 8.2(2) of the ATR.

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.

With respect to the duration of the approval requested, in light of the provisions of the Agreement, the Agency considers that a term of three years would be appropriate.

Accordingly, the Agency, pursuant to paragraph 60(1)(b) of the CTA and section 8.2 of the ATR, hereby approves the use by Japan Airlines of aircraft and flight crew provided by American Airlines and American Eagle, and the provision by American Airlines and American Eagle of such aircraft and flight crew to Japan Airlines, to permit Japan Airlines to provide its scheduled international service on licensed routes between Japan and Canada by selling transportation in its own name on flights operated by American Airlines and American Eagle between points in the United States of America and points in Canada, from February 6, 2007 to February 5, 2010, subject to the following conditions:

1. Japan Airlines shall continue to hold the required licence authority.
2. The air service approved herein shall only be provided as long as code-sharing agreements between American Airlines, American Eagle and Japan Airlines providing for such services remains in effect.
3. Japan Airlines shall apply its published tariffs, 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.
4. Air transportation using Japan Airline's code on flights operated by American Airline and American Eagle between points in the United States of America and points in Canada shall not be sold separately and shall only be available to traffic carried on a continuous journey under Japan Airline's code between Japan and Canada. No local traffic may be carried under Japan Airline's code between points in the United States of America and points in Canada.

American Airlines, American Eagle and Japan Airlines are reminded of the continuing requirement to comply with sections 8.2 and 8.5 of the ATR.

American Airlines, American Eagle and Japan 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 approval granted herein does not exempt American Airlines, American Eagle and Japan Airlines from the requirements of other legislative acts or regulations, including those of Transport Canada.

Members

• Raymon J. Kaduck
• Baljinder Gill