Decision No. 86-A-2000

February 8, 2000

File No. M4835-3-21-2

Docket No. 000087AG

Canadi*n, on behalf of itself and American Airlines, Inc. (hereinafter American), has applied to the Canadian Transportation Agency (hereinafter the Agency) for the approval set out in the title. The application was received on January 14, 2000 and amended on January 26, 2000.

Under Licence No. 970005, Canadi*n is authorized to operate a scheduled international service in accordance with the Agreement between the Government of Canada and the Government of the Republic of Costa Rica on Air Transport initialled ad referendum on November 22, 1996.

Under Licence No. 970004, Canadi*n is authorized to operate a scheduled international service in accordance with the Agreement between the Government of Canada and the Government of the Republic of El Salvador on Air Transport initialled ad referendum on November 22, 1996.

Under Licence No. 970024, Canadi*n is authorized to operate a scheduled international service in accordance with the Agreement between the Government of Canada and the Government of the Republic of Nicaragua on Air Transport initialled ad referendum on November 22, 1996.

Under Licence No. 970002, Canadi*n is authorized to operate a scheduled international service in accordance with the Agreement between the Government of Canada and the Government of the Republic of Guatemala on Air Transport initialled ad referendum on November 22, 1996.

The Agency has reviewed the application, and the material filed in support thereof, and is satisfied that it meets the requirements set out in section 8.2 of the Air Transportation Regulations (hereinafter the ATR).

With respect to the aspect of the application seeking approval for Canadi*n to sell transportation in its own name and apply its own code to flights operated by American on the Canada-United States of America sectors, the Agency notes that by Decision No. 386-A-1999 dated July 2, 1999, Canadi*n is authorized to apply its own code to flights operated by American between points in Canada and points in the United States of America.

With respect to the proposed duration of the approval, the Agency is not prepared to approve the proposed services for an indefinite period. The Agency notes that the rationalization of Air Canada's and Canadi*n's operations could impact the duration of some code-share arrangements. The Agency is therefore prepared to grant the approval only until the end of the 2000 IATA summer season.

Accordingly, pursuant to paragraph 60(1)(b) of the Canada Transportation Act and section 8.2 of the ATR, the Agency hereby approves the use by Canadi*n of aircraft and flight crew provided by American and the provision by American of such aircraft and flight crew to Canadi*n to permit Canadi*n, while providing its scheduled international services on licensed routes between Canada and each of Costa Rica, El Salvador, Nicaragua and Guatemala, to sell transportation in its own name and apply its own code to flights operated by American between Miami and each of San José, San Salvador, Managua and Guatemala City, from March 1, 2000 to October 28, 2000, subject to the following conditions:

1. Canadi*n and American shall continue to hold the required licence authorities.
2. The air services provided herein shall only be provided while the Cooperative Service Agreement dated July 31, 1995 providing for such services is in effect.
3. Canadi*n shall apply its published tariffs, on file with the Agency and in effect, to the carriage of its traffic. In particular, nothing in any commercial agreement between the two air carriers relating to limits of liability shall diminish the rights of passengers as stated in such tariffs.
4. Air transportation using Canadi*n's code on American's flights between Miami and each of San José, San Salvador, Managua and Guatemala City, shall be available only as part of a continuous journey without stopover under Canadi*n's code between Canada and the respective Central American countries. No local traffic may be carried under Canadi*n's code between Miami and the Central American points.

Canadi*n and American are reminded of the continuing requirement to comply with sections 8.2 and 8.5 of the ATR.

Canadi*n and American are further reminded to provide the Agency with a copy of any changes or any new or amended annexes to their Cooperative Service Agreement dated July 31, 1995, upon signature.

The approval granted herein does not exempt Canadi*n and American from the requirements of other legislative acts or regulations, including those of Transport Canada.