Decision No. 7-A-2004

January 5, 2004

File No. M4835-27-2

British Airways, on behalf of itself and Iberia, has applied to the Canadian Transportation Agency (hereinafter the Agency) for the approval set out in the title. The application was received on September 16, 2003 and amended on December 11, 2003.

Under Licence No. 975112, Iberia is authorized to operate a scheduled international service between Canada and Spain in accordance with the Agreement between the Government of Canada and the Government of Spain on Air Transport signed on September 15, 1988, (hereinafter the Agreement).

With respect to the period of approval, the Agency notes that the Agreement permits designated airlines to code share, including on flights operated by third country airlines. Under these circumstances the Agency is prepared to consider approval for a period of three (3) years.

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, SOR/88-58 (hereinafter the ATR).

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 Iberia of aircraft and flight crew provided by British Airways, and the provision by British Airways of such aircraft and flight crew to Iberia, to permit Iberia, while providing its scheduled international services between Spain and Canada, to sell transportation its own name on flights operated by British Airways between London, United Kingdom and Montréal, Toronto and Vancouver, Canada from January 27, 2004 to January 26, 2007, subject to the following conditions:

1. Iberia shall continue to hold the required licence authority.
2. Air transportation using Iberia's code on flights operated by British Airways shall not be sold separately and shall only be available to Iberia's traffic carried on a continuous journey between Spain and Canada.
3. The air services approved herein shall only be provided as long as a code-sharing agreement between Iberia and British Airways, providing for such services, remains in effect.

Iberia and British Airways are reminded of the requirement to provide the Agency with a copy of any new or amended annexes and/or appendices to the code-sharing agreement, which affect transportation to or from Canada, within thirty (30) days of execution.

Iberia and British Airways are also reminded of the continuing requirement to comply with sections 8.2 and 8.5 of the ATR.

The authority granted herein does not exempt Iberia and British Airways from the requirements of other legislative acts or regulations, including those of Transport Canada.