Decision No. 584-A-2003

October 20, 2003

File No. M4835-2-22

Docket No. 031147AG

Air Canada, on behalf of itself and Air Jamaica Limited (hereinafter Air Jamaica), has applied to the Canadian Transportation Agency (hereinafter the Agency) for the authority and approval set out in the title. The application was received on September 10, 2002.

Under Licence No. 975132, Air Jamaica is authorized to operate a scheduled international service in accordance with the Agreement between the Government of Canada and the Government of Jamaica on Air Transport signed on October 18, 1985 (hereinafter the Agreement).

Condition No. 1 of Licence No. 975132 reads as follows:

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

Condition No. 2 of Licence No. 975132 reads as follows:

The operation of the scheduled international service authorized herein shall be conducted subject to the provisions of the Agreement and to any applicable arrangements as may be agreed to between Canada and Jamaica.

Under Licence No. 975033, Air Canada is authorized to operate a scheduled international service, medium aircraft, and a scheduled international service, large aircraft, in accordance with the Agreement.

Condition No. 1 of Licence No. 975033 reads as follows:

The Licensee is authorized to operate the route(s) set out in the Agreement, operation to (a) specified point(s) in a third country on the route(s) set out in the said Agreement being subject to the Licensee holding another scheduled international licence issued by the Agency that permits the Licensee to operate a scheduled international service to and/or from the respective third country(ies) concerned.

Condition No. 2 of Licence No. 975033 reads as follows:

The operation of the scheduled international service authorized herein shall be conducted subject to the provisions of the Agreement and to any applicable arrangements as may be agreed to between Canada and Jamaica.

The Agency has reviewed and considered the application and the material filed in support thereof, and is of the opinion that the operation proposed by Air Canada and Air Jamaica is extra-bilateral because the use of another carrier's aircraft and flight crew and the provision of aircraft and flight crew to another carrier for code sharing services is not provided for in the Agreement. With respect to the period of approval, the Agency notes that Annex 2 of the Commercial Agreement between Air Canada and Air Jamaica of April 1, 1996 bears a termination date of March 31, 2004.

Accordingly, pursuant to subsection 78(2) of the Canada Transportation Act (hereinafter the CTA), the Agency hereby varies Condition Nos. 1 and 2 of Air Jamaica's Licence No. 975132 and of Air Canada's Licence No. 975033 to the extent necessary to permit the proposed services between Canada and Jamaica by Air Jamaica using aircraft and flight crew belonging to Air Canada during the period November 1, 2003 to March 31, 2004.

With respect to the request for approval under section 60 of the CTA and section 8.2 of the Air Transportation Regulations (hereinafter 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 Jamaica of aircraft and flight crew provided by Air Canada, and the provision by Air Canada of such aircraft and flight crew to Air Jamaica, to permit Air Jamaica, while providing its scheduled international service between Canada and Jamaica, to sell transportation in its own name on flights operated by Air Canada between Canada and Jamaica. This approval is granted from October 26, 2003 to March 31, 2004, subject to the following conditions:

1. Air Canada and Air Jamaica shall continue to hold the required licence authorities.
2. The air services approved herein shall only be provided as long as the Commercial Agreement between Air Canada and Air Jamaica of April 1, 1996, as amended, providing for such services remains in effect.
3. Air Jamaica 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. The approval granted herein does not apply to the blocking of space for the carriage of cargo.

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

Air Canada and Air Jamaica are further reminded to provide the Agency with a copy of any amendment to their Commercial Agreement dated April 1, 1996 or any new or amended annex, upon signature.

The authority and approval granted herein do not exempt Air Canada and Air Jamaica from the requirements of other legislative acts or regulations, including those of Transport Canada.

This Decision shall form part of Licence Nos. 975132 and 975033 and shall remain affixed thereto until March 31, 2004.