Decision No. 6-A-2012

Air Canada, on behalf of itself and Lineas Aereas Costarricenses S.A. carrying on business as LACSA (LACSA) and its regional carriers and affiliates, has applied to the Canadian Transportation Agency (Agency) for approvals to permit Air Canada to provide its scheduled international services between Canada and each of Guatemala, El Salvador and Nicaragua by selling transportation in its own name on flights operated by LACSA and its regional carriers and affiliates between Costa Rica and each of Guatemala, El Salvador and Nicaragua. These approvals are requested for as long a period as the Agency deems appropriate, commencing December 27, 2011.

Air Canada has also requested an exemption from the application of subsection 8.2(2) of the Air Transportation Regulations (ATR), which requires the filing of an application for an approval at least 45 days before the first planned flight. The Agency finds that compliance with subsection 8.2(2) of the ATR is impractical in this case. Accordingly, the Agency, pursuant to paragraph 80(1)(c) of the Canada Transportation Act (CTA), exempts Air Canada from the application of subsection 8.2(2) of the ATR.

Air Canada is licensed to operate scheduled international services, large aircraft in accordance with the Agreements between the Government of Canada and each of the Government of the Republic of Guatemala, the Government of the Republic of El Salvador and the Government of the Republic of Nicaragua (Agreements).

The Agency has considered the application and the material in support and is satisfied that it meets the remaining requirements of section 8.2 of the ATR.

With respect to the duration of the approvals requested, in light of the provisions of the Agreements, the Agency considers three years to be appropriate.

Accordingly, the Agency, pursuant to paragraph 60(1)(b) of the CTA and section 8.2 of the ATR, approves the use by Air Canada of aircraft and flight crew provided by LACSA and its regional carriers and affiliates, and the provision by LACSA and its regional carriers and affiliates of such aircraft and flight crew to Air Canada, to permit Air Canada to provide its scheduled international services, large aircraft on licensed routes between Canada and each of Guatemala, El Salvador and Nicaragua by selling transportation in its own name on flights operated by LACSA and its regional carriers and affiliates between Costa Rica and each of Guatemala, El Salvador and Nicaragua, for a period of three years from the date of this Decision.

These approvals are subject to the following conditions:

1. Air Canada shall continue to hold the valid licence authorities.
2. Air Canada shall apply its published tariffs, in effect, to the carriage of its traffic. 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 services approved shall only be provided as long as a code-sharing agreement providing for such services remains in effect.
4. Air Canada, LACSA and its regional carriers and affiliates shall continue to comply with the insurance requirements set out in subsections 8.2(4), 8.2(5) and 8.2(6) of the ATR.
5. Air Canada shall continue to comply with the public disclosure requirements set out in section 8.5 of the ATR.
6. Air Canada and LACSA shall provide the Agency with a copy of any new agreement or amendments to their code‑sharing agreement, including any new or amended annex, without delay.
7. These approvals do not apply to the carriage of cargo.