Decision No. 127-A-2016

April 26, 2016

APPLICATION by Air Canada also carrying on business as Air Canada rouge (Air Canada), on behalf of itself and Oceanair Linhas Aereas S.A. carrying on business as Avianca Brazil (Avianca Brazil), pursuant to section 60 of the Canada Transportation Act, S.C., 1996, c.10, as amended (CTA), and section 8.2 of the Air Transportation Regulations, SOR/88-58, as amended (ATR).

Case number: 
16-01659

Air Canada, on behalf of itself and Avianca Brazil, has applied to the Canadian Transportation Agency (Agency) for an approval to permit Air Canada to provide its scheduled international service between Canada and Brazil by selling transportation in its own name on flights operated by Avianca Brazil between points in Brazil, beginning on April 27, 2016 for an indefinite period.

Air Canada has also requested an exemption from the application of subsection 8.2(2) of the 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 CTA, exempts Air Canada from the application of subsection 8.2(2) of the ATR.

Air Canada is licensed to operate a scheduled international service in accordance with Arrangement between the Government of Canada and the Government of the Federative Republic of Brazil set out in an Agreed Minute signed on February 18, 2011.

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.

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 Avianca Brazil, and the provision by Avianca Brazil 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 Brazil by selling transportation in its own name on flights operated by Avianca Brazil between points in Brazil, for an indefinite period beginning on April 27, 2016.

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 Avianca Brazil 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 Avianca Brazil 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 Avianca Brazil between points in Brazil 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 Brazil.

Member(s)

Sam Barone
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