Decision No. 76-A-2009
March 9, 2009
APPLICATION by Continental Airlines, Inc. (Continental Airlines) and ExpressJet Airlines, Inc. carrying on business as Continental Express; ExpressJet Corporate Aviation; and Delta Connection (ExpressJet), on behalf of themselves and Alitalia Compagnia Aerea Italiana S.p.A. carrying on business as C.A.I. Compagnia Aerea Italiana; C.A.I.; and Alitalia (Alitalia), 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 Alitalia to provide its scheduled international service between Italy and Canada by selling transportation in its own name on flights operated by Continental Airlines and ExpressJet between points in the United States of America and points in Canada for an indefinite period commencing immediately.
File No. M4835-10-5
Continental Airlines and ExpressJet, on behalf of themselves and Alitalia, have applied to the Canadian Transportation Agency (Agency) for the approval set out in the title. The application was complete on February 19, 2009.
Under Licence No. 090002, Alitalia is authorized to operate a scheduled international service in accordance with the Agreement between the Government of Canada and the Government of Italy on Air Transport, initialled ad referendum on May 16, 2002 (Agreement).
Under the terms of the Agreement, limited code sharing between designated airlines and third-country carriers is permitted. That is, while providing services between Canada and Italy, the designated airlines of Italy may code share on flights operated by carriers of a third country to three points in Canada. Montréal, Quebec, Ottawa, Ontario and Toronto, Ontario have been selected by the Italian aeronautical authority for code-share services.
The Agency notes that the application was filed less than 45 days before the first planned flight, as required by subsection 8.2(2) of the Air Transportation Regulations (ATR), and therefore an exemption from the application of this provision is necessary. The Agency is of the opinion that compliance with subsection 8.2(2) of the ATR is impractical in this case. Accordingly, pursuant to paragraph 80(l)(c) of the Canada Transportation Act (CTA), the Agency orders that Alitalia be exempt from the application of subsection 8.2(2) of the ATR.
The Agency has reviewed and considered the application and the material in support and is satisfied that it meets the remaining requirements of section 8.2 of the ATR.
With respect to the duration of the approval requested, 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 CTA and section 8.2 of the ATR, approves the use by Alitalia of aircraft and flight crew provided by Continental Airlines and ExpressJet, and the provision by Continental Airlines and ExpressJet of such aircraft and flight crew to Alitalia, to permit Alitalia to provide its scheduled international service on licensed routes between Italy and Canada by selling transportation in its own name on flights operated by Continental Airlines and ExpressJet between points in the United States of America and Montréal, Ottawa and Toronto, for a three year period commencing from the date of this Decision, subject to the following conditions:
- Alitalia shall continue to hold the required licence authority.
- Alitalia 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.
- The air service approved shall only be provided as long as code-sharing agreements providing for such services remain in effect.
Continental Airlines, ExpressJet and Alitalia are reminded of the continuing requirement to comply with sections 8.2 and 8.5 of the ATR.
Continental Airlines, ExpressJet and Alitalia 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.
This approval does not exempt Continental Airlines, ExpressJet and Alitalia from the requirements of other legislative acts or regulations, including those of Transport Canada.
Members
- Raymon J. Kaduck
- J. Mark MacKeigan
Member(s)
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