Decision No. 654-A-2006

November 29, 2006

File No. M4835-2-26

Air Canada, on behalf of itself and Austrian Airlines, has applied to the Canadian Transportation Agency (hereinafter the Agency) for the approvals set out in the title. The application was received on October 16, 2006 and was complete and ready for processing on November 24, 2006.

The Agency notes that this application is a renewal of the approvals granted by Decision No. 669-A-2003 dated December 3, 2003.

Under Licence No. 975040, Air Canada is authorized to operate a scheduled international service, large aircraft, and a scheduled international service, all-cargo aircraft, in accordance with the Agreement between the Government of Canada and the Austrian Federal Government on Air Transport, signed on June 22, 1993 (hereinafter the Agreement).

Under Licence No. 985002, Austrian Airlines is authorized to operate a scheduled international service in accordance with the Agreement.

The Agency notes that, under the terms of the Agreement, designated air carriers are permitted to offer the agreed services through codesharing with other air carriers.

The Agency has reviewed and considered the application and the material filed in support thereof and is satisfied that it meets the requirements of section 8.2 of the Air Transportation Regulations (hereinafter the ATR).

With respect to the duration of the subject approvals, Air Canada has requested that it be approved for a period of three years or such longer period as may be approved by the Agency. In this case, and 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 Canada Transportation Act and section 8.2 of the ATR, hereby approves the use by Air Canada of aircraft and flight crew provided by Austrian Airlines and its affiliates, and the provision by Austrian Airlines and its affiliates of such aircraft and flight crew to Air Canada, to permit Air Canada to provide its scheduled international service between Canada and Austria by selling transportation in its own name on flights operated by Austrian Airlines and its affiliates between points in Canada and points in Austria including segments between intermediate points and points Austria; and between domestic points in Austria.

In addition, the Agency hereby approves the use by Austrian Airlines of aircraft and flight crew provided by Air Canada and its affiliates, and the provision by Air Canada and its affiliates of such aircraft and flight crew to Austrian Airlines, to permit Austrian Airlines to provide its scheduled international service between Austria and Canada by selling transportation in its own name on flights operated by Air Canada and its affiliates between points in Austria and points in Canada including segments between intermediate points and points in Canada; between domestic points in Canada; and between points in Canada and points in the United States of America.

These approvals are granted from December 3, 2006 to December 2, 2009 and are subject to the following conditions:

1. Air Canada and Austrian Airlines shall continue to hold the required licence authorities.
2. Air Canada and Austrian Airlines shall each 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 these air carriers relating to limits of liability shall diminish the rights of passengers as stated in such tariffs.
3. The air services approved herein shall only be provided as long as a code-sharing agreement providing for such services remains in effect.
4. Air transportation using Air Canada's code on flights operated by Austrian Airlines and its affiliates on segments between intermediate points and points in Austria and between domestic points in Austria shall not be sold separately and shall only be available to traffic carried on a continuous journey under Air Canada's code between Canada and Austria.
5. Air transportation using Austrian Airline's code on flights operated by Air Canada and its affiliates on segments between intermediate points and points in Canada; between domestic points in Canada; and between points in Canada and points in the United States of America shall not be sold separately and shall only be available to traffic carried on a continuous journey under Austrian Airline's code to and from Austria.

Air Canada, Austrian Airlines and their respective affiliates are reminded of the continuing requirement to comply with sections 8.2 and 8.5 of the ATR.

Air Canada 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 approvals granted herein do not exempt Air Canada, Austrian Airlines and their respective affiliates from the requirements of other legislative acts or regulations, including those of Transport Canada.

Members

• Guy Delisle
• Mary-Jane Bennett