Decision No. 84-A-2012

Etihad Airways P.J.S.C. carrying on business as Etihad Airways (Etihad Airways), on behalf of itself and Air Berlin PLC & Co. Luftverkehrs KG carrying on business as Air Berlin (Air Berlin), has applied to the Canadian Transportation Agency (Agency) for an approval to permit Etihad Airways to provide its scheduled international service between Canada and the United Arab Emirates by selling transportation in its own name on flights operated by Air Berlin between Dusseldorf, Germany and Vancouver, British Columbia, Canada, for a period of three years or such longer period as may be authorized by the Agency.

Etihad Airways has also requested an exemption from the application of subsection 8.2(2) of the Air Transportation Regulations (ATR), which requires the filing of an application for an approval at least 45 days before the first planned flight. The Agency finds that compliance with subsection 8.2(2) of the ATR is impractical in this case. Accordingly, the Agency, pursuant to paragraph 80(1)(c) of the Canada Transportation Act (CTA), exempts Etihad Airways from the application of subsection 8.2(2) of the ATR.

Etihad Airways is licensed to operate a scheduled international service in accordance with the Agreement between the Government of Canada and the Government of the United Arab Emirates on Air Transport, signed on June 17, 2001 (Agreement).

The Agency has considered the application and the material in support and is satisfied that it meets the remaining requirements of section 8.2 of the ATR.

Under the terms of the Agreement, code sharing between designated airlines and third-country carriers is permitted. That is, while providing services between Canada and the United Arab Emirates, the designated airlines may code share on each other’s flights, or on flights operated by a carrier of a third country.

With respect to the duration of the approval requested, in light of the provisions of the Agreement, the Agency considers three years to 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 Etihad Airways of aircraft and flight crew provided by Air Berlin, and the provision by Air Berlin of such aircraft and flight crew to Etihad Airways, to permit Etihad Airways to provide its scheduled international service on licensed routes between Canada and the United Arab Emirates by selling transportation in its own name on flights operated by Air Berlin between Dusseldorf and Vancouver, from March 25, 2012 to March 24, 2015.

This approval is subject to the following conditions:

1. Etihad Airways shall continue to hold the valid licence authority.
2. Etihad Airways 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. Etihad Airways and Air Berlin 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. Etihad Airways shall continue to comply with the public disclosure requirements set out in section 8.5 of the ATR.
6. Etihad Airways and Air Berlin 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.
7. Air transportation using Etihad Airways’ code on flights operated by Air Berlin between Dusseldorf and Vancouver shall not be sold separately and shall only be available to traffic carried on a continuous journey under Etihad Airways’ code between Canada and the United Arab Emirates. No local traffic may be carried under Etihad Airways’ code between Dusseldorf and Vancouver.
8. This approval does not apply to the carriage of cargo.