Decision No. 731-A-2005

December 19, 2005

File No. M4835-2-52

Air Canada, on behalf of itself and Shuttle America Corporation carrying on business as United Express (hereinafter Shuttle America), has applied to the Canadian Transportation Agency (hereinafter the Agency) for the approval set out in the title. The application was received on November 7, 2005 and was complete and ready for processing on November 17, 2005

Under Licence No. 975025, Air Canada is authorized to operate a scheduled international service, medium aircraft, a scheduled international service, large aircraft, and a scheduled international service, all-cargo aircraft, between points in Canada and points in the United States of America in accordance with the Air Transport Agreement between the Government of Canada and the Government of the United States of America signed on February 24, 1995 (hereinafter the Agreement).

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 approval requested, the Agency notes that code-sharing between Canadian and American carriers is specifically permitted in the Agreement, subject to the normal regulatory requirements of the aeronautical authorities. Under such circumstances, the Agency considers that it is appropriate to grant approval for an indefinite period.

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 Shuttle America, and the provision by Shuttle America of such aircraft and flight crew to Air Canada, to permit Air Canada to provide scheduled international services between Canada and the United States of America by selling transportation in its own name on flights operated by Shuttle America between points in Canada and points in the United States of America, including flights between points in the United States of America, for an indeterminate period commencing December 20, 2005, subject to the following conditions:

1. Air Canada shall continue to hold the required licence authority.
2. Air Canada shall apply its published tariffs 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 Shuttle America between 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 Air Canada's code between Canada and the United States of America. No local traffic may be carried under Air Canada's code between points in the United States of America.

Air Canada and Shuttle America are reminded of the continuing requirement to comply with sections 8.2 and 8.5 of the ATR.

Air Canada and Shuttle America 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 authority granted herein does not exempt Air Canada and Shuttle America from the requirements of other legislative acts or regulations, including those of Transport Canada.

Members

• Baljinder Gill
• Guy Delisle