Agency Rulings

Decision No. 332-A-2002

June 18, 2002

APPLICATION by Continental Airlines Inc. (hereinafter Continental), on behalf of itself and Champlain Enterprises, Inc. carrying on business as CommutAir and Continental Connection (hereinafter CommutAir), for an approval pursuant to section 60 of the Canada Transportation Act, S.C., 1996, c. 10, and section 8.2 of the Air Transportation Regulations, SOR/88-58, as amended, to permit Continental to sell transportation in its own name on flights operated by CommutAir between points in Canada and points in the United States of America for an indefinite period.

File No. M4835-14-5

Docket No. 020691AG

Continental, on behalf of itself and CommutAir, has applied to the Canadian Transportation Agency (hereinafter the Agency) for the approval set out in the title. The application was received on May 31, 2002.

Continental has also requested an exemption from the application of subsection 8.2(2) of the Air Transportation Regulations (hereinafter the ATR), which requires the filing of an application for an approval at least 45 days before the first planned flight.

Under Licence Nos. 975083 and 980188, Continental and CommutAir are respectively authorized to operate a scheduled international service in accordance with the Air Transport Agreement between the Government of Canada and the Government of the United States of America signed on February 24, 1995 (hereinafter the Agreement).

With respect to the request for an exemption from the application of subsection 8.2(2) of the ATR, the Agency has considered the request and is of the opinion that compliance by Continental 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 (hereinafter the CTA), hereby orders that Continental be exempt from the application of subsection 8.2(2) of the ATR.

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

With respect to the request that the Agency's approval be for an indefinite period, the Agency notes that code-sharing between Canadian and American air carriers is specifically permitted in the Agreement, subject to the normal regulatory requirements of the aeronautical authorities. Under such circumstances, the Agency considers it appropriate to grant the approval for an indefinite period, as requested.

Accordingly, the Agency, pursuant to paragraph 60(1)(b) of the CTA and section 8.2 of the ATR hereby approves the use by Continental of aircraft and flight crew provided by CommutAir, and the provision by CommutAir of such aircraft and flight crew to Continental, to permit Continental to sell transportation in its own name on flights operated by CommutAir between points in Canada and points in the United States of America, from the date of this Decision, subject to the following conditions:

1. Continental and CommutAir shall continue to hold the required licence authorities.
2. Each air carrier shall apply its published tariffs 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.

Continental and CommutAir are reminded of the continuing requirement to comply with sections 8.2 and 8.5 of the ATR.

The approval granted herein does not exempt Continental and CommutAir from the requirements of other legislative acts or regulations, including those of Transport Canada.