Decision No. 596-A-1999

October 25, 1999

File No. M4835-2-38

Docket No. 990872AG

Air Canada, on behalf of itself and Atlantic Coast Airlines, Inc. (hereinafter Atlantic Coast), has applied to the Canadian Transportation Agency (hereinafter the Agency) for the approval set out in the title. The application was received on August 9, 1999, and amended on August 12, 1999 and October 1, 1999.

Under Licence No. 975025, Air Canada is authorized to operate a scheduled international service, medium aircraft and a scheduled international, large aircraft, in accordance with the Air Transport Agreement between the Government of Canada and the Government of the United States of America signed on February 24, 1995 (hereinafter the Agreement).

With respect to the proposed duration of the application, the Agency notes that in accordance with Article 10. 6 of the Agreement, Air Canada and Atlantic Coast are entitled to operate the subject code share. However, the Agency also notes that the Code Share Agreement between Air Canada and Atlantic Coast dated September 7, 1999 will expire on October 31, 2006. Therefore, the Agency is of the opinion that the application should only be approved to October 31, 2006.

With respect to the applicants' request for approval under section 60 of the Canada Transportation Act (hereinafter the CTA) and section 8.2 of the Air Transportation Regulations (hereinafter the ATR), the Agency is satisfied that the application meets the requirements set out in 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 crew provided by Atlantic Coast, and the provision by Atlantic Coast of such aircraft and crew to Air Canada, to permit Air Canada in providing its scheduled international service between Canada and the United States of America to sell transportation in its own name and apply its own code on flights operated by Atlantic Coast between Canada and Washington D.C. (Dulles) or Chicago, Illinois and points in the United States of America served by Atlantic Coast's services from October 31, 1999 to October 31, 2006, subject to the following conditions:

1. Air Canada and Atlantic Coast shall continue to hold the required licence authorities.
2. Air Canada 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 two air carriers relating to limits of liability shall diminish the rights of passengers as stated in such tariffs.
3. Services pursuant to this approval shall only be provided:
   
   1. if necessary approvals have been obtained from the Aeronautical Authorities of the United States of America; and
   2. while the Code Share Agreement dated September 7, 1999 providing for such services is in effect.

Air Canada and/or Atlantic Coast are reminded to provide the Agency with a copy of any changes to their Code Share Agreement dated September 7, 1999, or annexes thereto that relate to this authority immediately after signature.

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

The authorizations and approvals granted herein do not exempt Air Canada and Atlantic Coast from the requirements of other legislative acts or regulations, including those of Transport Canada.