Decision No. 70-A-2011

March 8, 2011

APPLICATION by El Al Israel Airlines Ltd., on behalf of itself, American Airlines, Inc. and American Eagle Airlines, Inc., for an approval pursuant to section 60 of the Canada Transportation Act, S.C., 1996, c. 10, as amended, and section 8.2 of the Air Transportation Regulations, SOR/88-58, as amended.

File No. M4835-11-3

El Al Israel Airlines Ltd. (El Al), on behalf of itself, American Airlines, Inc. (American Airlines) and American Eagle Airlines, Inc. (American Eagle), has applied to the Canadian Transportation Agency (Agency) for an approval to permit El Al to provide its scheduled international service between Israel and Canada by selling transportation in its own name on flights operated by American Airlines and American Eagle between Canada and the United States of America, from March 28, 2011 to March 31, 2012.

El Al is licensed to operate a scheduled international service in a manner consistent with the Agreed Minute between Israel and Canada signed on February 4, 2011 (Agreed Minute).

The Agency notes that under the terms of the Agreed Minute and subject to normal regulatory requirements, El Al may sell transportation under its own code on flights operated by Air Canada and one third country airline on any routing to, from and beyond cities in Canada.

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

With respect to the duration of the approval, the Agency is of the view that as the licence expires on March 25, 2012, concurrently with the entitlements for scheduled air services in the Agreed Minute, it would be inappropriate to consider approval of the application beyond the expiry date of the licence.

Accordingly, the Agency, pursuant to paragraph 60(1)(b) of the Canada Transportation Act and section 8.2 of the ATR, approves the use by El Al of aircraft and flight crew provided by American Airlines and American Eagle, and the provision by American Airlines and American Eagle of such aircraft and flight crew to El Al, to permit El Al to provide its scheduled international service on licensed routes between Israel and Canada by selling transportation in its own name on flights operated by American Airlines and American Eagle between Canada and the United States of America, from March 28, 2011 to March 25, 2012.

This approval is subject to the following conditions:

1. El Al shall continue to hold the valid licence authority.
2. El Al 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 service approved shall only be provided as long as a code-sharing agreement providing for such service remains in effect.
4. El Al, American Airlines and American Eagle 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. El Al shall continue to comply with the public disclosure requirements set out in section 8.5 of the ATR.
6. El Al and American Airlines 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.

This approval does not exempt El Al, American Airlines and American Eagle from the requirements of other legislative acts or regulations, including those of Transport Canada.

Members

• Raymon J. Kaduck
• J. Mark MacKeigan