Decision No. 137-A-2002

March 26, 2002

March 26, 2002

APPLICATION by Air Canada, on behalf of itself and Alia - The Royal Jordanian Airlines Corporation doing business as Royal Jordanian (hereinafter Royal Jordanian), for extra-bilateral authority and approval pursuant to subsection 78(2) and 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 Royal Jordanian to sell transportation in its own name on flights operated by Air Canada between Toronto and/or Montréal, Canada and London, United Kingdom; and to permit Air Canada to serve Amman, Jordan as a point beyond London and to sell transportation in its own name on flights operated by Royal Jordanian between London and Amman for the carriage of their respective passengers between Canada and Jordan effective March 31, 2002 for a period consistent with the Agency's policy on granting extra-bilateral approvals.

File No. M4835-2-7

Docket No. 020343AG


Air Canada, on behalf of itself and Royal Jordanian, has applied to the Canadian Transportation Agency (hereinafter the Agency) for the authority and approval set out in the title. The application was received on February 12, 2002.

Under Licence No. 975038, Air Canada is authorized to operate a scheduled international service in accordance with the Agreement between the Government of the United Kingdom of Great Britain and Northern Ireland and the Government of Canada concerning Air Services signed on June 22, 1988 (hereinafter the United Kingdom Agreement).

Under Licence Nos. 975054 and 975144, respectively, Air Canada and Royal Jordanian are authorized to operate scheduled international services in accordance with the Agreement between the Government of Canada and the Government of the Hashemite Kingdom of Jordan on Air Transport signed on May 10, 1990.

Air Canada has requested extra-bilateral authority to provide the proposed service. The Agency notes that the United Kingdom Agreement does not permit Air Canada to serve Amman as a point beyond the United Kingdom. Therefore, the Agency finds that Air Canada does not hold the required licence authority and that certain conditions of Air Canada's licence must be varied in order to permit the provision of the proposed service.

Accordingly, the Agency, pursuant to subsection 78(2) of the Canada Transportation Act (hereinafter the CTA), hereby varies Condition Nos. 1 and 2 of Air Canada's Licence No. 975038 to permit Air Canada to provide service to Amman as a point beyond London from March 31 to October 26, 2002.

With respect to the request for approval under section 60 of the CTA and section 8.2 of the ATR, the Agency has reviewed and considered the application and the material filed in support thereof 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, hereby approves the use by Royal Jordanian of aircraft and flight crew provided by Air Canada, and the provision by Air Canada of such aircraft and flight crew to Royal Jordanian, to permit Royal Jordanian to sell transportation in its own name on flights operated by Air Canada on the Toronto/Montréal - London sector of Royal Jordanian's services between Jordan and Canada. In addition, the Agency hereby approves the use by Air Canada of aircraft and flight crew provided by Royal Jordanian, and the provision by Royal Jordanian of such aircraft and flight crew to Air Canada, to permit Air Canada to sell transportation in its own name on flights operated by Royal Jordanian on the London-Amman sector of Air Canada's services between Canada and Jordan, from March 31 to October 26, 2002, subject to the following conditions:

  1. Air Canada and Royal Jordanian shall hold the required licence authorities.
  2. The air services approved herein shall only be provided as long as:
    1. the necessary approvals have been obtained from the appropriate foreign aeronautical authorities; and
    2. the Code-Sharing Agreement between Air Canada and Royal Jordanian of June 12, 1998, as amended on October 20, 2000, providing for the carriage of each other's traffic as set forth herein, remains in effect.
  3. Air transportation using Royal Jordanian's code on flights operated by Air Canada between Toronto/Montréal and London shall be available only as part of a continuous journey without stopover under Royal Jordanian's code, between Toronto/Montréal and Amman. No local traffic may be carried between Toronto/Montréal and London under Royal Jordanian's code.
  4. Air transportation using Air Canada's code on flights operated by Royal Jordanian between London and Amman shall be available only as part of a continuous journey without stopover under Air Canada's code between Toronto/Montréal and Amman. No local traffic may be carried between Amman and London under Air Canada's code.
  5. Each air carrier shall apply their published tariffs, on file with the Agency and in effect, to the carriage of their 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.

Air Canada and/or Royal Jordanian are reminded to provide the Agency with a copy of any amendment to their Code-Sharing Agreement dated June 12, 1998, as amended on October 20, 2000, or any new or amended annex, upon signature.

Air Canada and Royal Jordanian are also reminded of the continuing requirement to comply with sections 8.2 and 8.5 of the ATR.

The authority and the approval granted herein do not exempt Air Canada and Royal Jordanian from the requirements of other legislative acts or regulations, including those of Transport Canada.

This Decision shall form part of Licence No. 975038 and shall remain affixed thereto until October 26, 2002.

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