Decision No. 73-A-2009

March 6, 2009

March 6, 2009

APPLICATION by Air Canada, on behalf of itself and Deutsche Lufthansa Aktiengeselleschaft (Lufthansa German Airlines) (Lufthansa), 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, for an approval to permit Air Canada to provide its scheduled international service between Canada and Israel by selling transportation in its own name on flights operated by Lufthansa and its affiliates and subsidiaries between points in Germany and points in Israel, for a period of three years commencing on March 30, 2009.

File No. M4835-2-5-7


Air Canada, on behalf of itself and Lufthansa, has applied to the Canadian Transportation Agency (Agency) for the approval set out in the title. The application was complete on February 26, 2009.

The Agency notes that this application is a renewal of the approval granted by Decision No. 137-A-2008 dated March 28, 2008.

Under Licence No. 090013, Air Canada is authorized to operate scheduled international services in accordance with the Agreed Minute between Canada and Israel signed on February 17, 2009 (Agreed Minute).

The Agreed Minute was renewed on February 17, 2009 for a further period of one year until the end of the IATA 2009/2010 winter season. Under the terms of the Agreed Minute, code sharing between designated airlines and third-country carriers is permitted. That is, while providing services between Canada and Israel, the designated airlines may code share on flights operated by a carrier of a third country.

The Agency has reviewed and 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 requested, the Agency notes that the new Licence No. 090013 issued to Air Canada is in effect until March 27, 2010. Therefore, the Agency considers it appropriate that the approval of Air Canada's request be renewed until March 27, 2010.

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 Air Canada of aircraft and flight crew provided by Lufthansa and its affiliates and subsidiaries, and the provision by Lufthansa and its affiliates and subsidiaries of such aircraft and flight crew to Air Canada, to permit Air Canada to provide its scheduled international service on licensed routes between Canada and Israel by selling transportation in its own name on flights operated by Lufthansa and its affiliates and subsidiaries between points in Germany and points in Israel, from March 30, 2009 to March 27, 2010, subject to the following conditions:

  1. Air Canada shall continue to hold the required licence authority.
  2. Air Canada shall apply its published tariffs, in effect, to the carriage of its traffic. In particular, 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 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 Lufthansa and its affiliates and subsidiaries between points in Germany and points in Israel 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 points in Israel. No local traffic may be carried under Air Canada's code between points in Germany and points in Israel.

Air Canada and Lufthansa and its affiliates and subsidiaries are reminded of the continuing requirement to comply with sections 8.2 and 8.5 of the ATR.

Air Canada and Lufthansa and its affiliates and subsidiaries 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 approval granted herein does not exempt Air Canada and Lufthansa and its affiliates and subsidiaries from the requirements of other legislative acts or regulations, including those of Transport Canada.

Members

  • Raymon J. Kaduck
  • Jean-Denis Pelletier, ing./P. Eng.

Member(s)

Raymon J. Kaduck
Jean-Denis Pelletier, P.Eng.
Date modified: