Decision No. 8-A-2010

January 13, 2010

File No. M4835-27-1

British Airways Plc carrying on business as British Airways (British Airways), on behalf of itself and Finnair OYJ (Finnair), has applied to the Canadian Transportation Agency (Agency) for an approval to permit Finnair to provide its scheduled international service between points in Finland and points in Canada by selling transportation in its own name on flights operated by British Airways between London, United Kingdom and points in Canada.

Finnair is authorized to operate a scheduled international service in accordance with the Agreement on Air Transport between Canada and the European Community and its Member States signed on December 18, 2009 (Agreement).

Under the terms of the Agreement, code sharing between designated carriers and third-country carriers is permitted. That is, while providing services between Canada and Member States of the Europeen Community (Member States), the designated carriers may code share on each others' flights, including flights operated via third countries.

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 British Airways 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 a term of three years appropriate.

Accordingly, the Agency, pursuant to paragraph 60(1)(b) of the CTA and section 8.2 of the ATR, approves the use by Finnair of aircraft and flight crew provided by British Airways, and the provision by British Airways of such aircraft and flight crew to Finnair, to permit Finnair to provide its scheduled international service between points in Finland, a Member State, and points in Canada by selling transportation in its own name on flights operated by British Airways between London and points in Canada, for a period of three years from the date of this Decision, subject to the following conditions:

1. Finnair shall continue to hold the required licence authority.
2. Finnair shall apply its published tariffs, on file with the Agency and 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 services remains in effect.

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

British Airways and Finnair 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 British Airways and Finnair from the requirements of other legislative acts or regulations, including those of Transport Canada.

Members

• Raymon J. Kaduck
• J. Mark MacKeigan