Determination No. A-2017-83

Air Canada, on behalf of itself and Lufthansa, has applied to the Canadian Transportation Agency (Agency) for an approval to permit Air Canada to provide its scheduled international service between Canada and the United Arab Emirates by selling transportation in its own name on flights operated by Lufthansa between Germany and the United Arab Emirates for an indefinite period.

Air Canada 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 requirements of section 8.2 of the ATR.

Accordingly, the Agency, pursuant to paragraph 60(1)(b) of the CTA and section 8.2 of the ATR, approves the use by Air Canada of aircraft with flight crew provided by Lufthansa, and the provision by Lufthansa of such aircraft and flight crew to Air Canada, to permit Air Canada 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 Lufthansa between Germany and the United Arab Emirates, for an indefinite period beginning on August 31, 2017.

This approval is subject to the following conditions:

1. Air Canada shall continue to hold the valid licence authority.
2. Air Canada 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. Air Canada and Lufthansa 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. Air Canada shall continue to comply with the public disclosure requirements set out in section 8.5 of the ATR.
6. Air Canada and Lufthansa 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 Air Canada's code on flights operated by Lufthansa between Germany and the United Arab Emirates 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 Arab Emirates. No local traffic may be carried under Air Canada's code between Germany and the United Arab Emirates.