Decision No. 24-A-2017

February 9, 2017
APPLICATION by Air Canada also carrying on business as Air Canada rouge and as Air Canada Cargo (Air Canada), on behalf of itself; Sky Regional Airlines Inc. carrying on business as Sky Regional and as Air Canada Express (Sky Regional); Jazz Aviation LP, as represented by its general partner, Aviation General Partner Inc. carrying on business as Air Canada Express and as Jazz (Jazz); and South African Airways SOC Limited carrying on business as South African Airways (South African Airways), 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: 
16-05693
16-05694

Air Canada, on behalf of itself, Sky Regional, Jazz and South African Airways, has applied to the Canadian Transportation Agency (Agency) for approvals to permit:

  1. Air Canada to provide its scheduled international service between Canada and South Africa by selling transportation in its own name on flights operated by South African Airways between member states of the European Community and each of the following cities: Johannesburg and Cape Town, South Africa, between the United States of America and each of the following cities: Johannesburg and Cape Town, and between Hong Kong and Johannesburg; and,
  2. South African Airways to provide its scheduled international service between South Africa and Canada by selling transportation in its own name on flights operated by Air Canada between Hong Kong and Vancouver, British Columbia, Canada, and between member states of the European Community and each of the following cities: St. John’s, Newfoundland and Labrador, Halifax, Nova Scotia, Montréal, Quebec, Ottawa and Toronto, Ontario, Edmonton and Calgary, Alberta and Vancouver, Canada; and by selling transportation in its own name on flights operated by Air Canada, Sky Regional and Jazz between the United States of America and each of the following cities: Toronto and Vancouver.

These approvals are requested for an indefinite period beginning on February 15, 2017.

Air Canada is licensed to operate, through code sharing, a scheduled international service, large aircraft, in accordance with the Arrangement between the Government of Canada and the Government of the Republic of South Africa set out in an Agreed Minute, signed on July 8, 2009 (Arrangement).

South African Airways is licensed to operate, through code sharing, a scheduled international service in accordance with the Arrangement.

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:

  1. Air Canada of aircraft and flight crew provided by South African Airways, and the provision by South African Airways 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 South Africa by selling transportation in its own name on flights operated by South African Airways between member states of the European Community and each of the following cities: Johannesburg and Cape Town, between the United States of America and each of the following cities: Johannesburg and Cape Town, and between Hong Kong and Johannesburg; and,
  2. South African Airways of aircraft and flight crew provided by Air Canada, Sky Regional and Jazz, and the provision by Air Canada, Sky Regional and Jazz Aviation of such aircraft and flight crew to South African Airways, to permit South African Airways to provide its scheduled international service on licensed routes between South Africa and Canada by selling transportation in its own name on flights operated by Air Canada between Hong Kong and Vancouver, and between member states of the European Community and each of the following cities: St. John’s, Halifax, Montréal, Ottawa, Toronto, Edmonton, Calgary and Vancouver; and by selling transportation in its own name on flights operated by Air Canada, Sky Regional and Jazz between the United States of America and each of the following cities: Toronto and Vancouver.

These approvals are granted for an indefinite period beginning on February 15, 2017, and are subject to the following conditions:

  1. Air Canada and South African Airways shall continue to hold the valid licence authorities.
  2. Air Canada and South African Airways shall apply their published tariffs, in effect, to the carriage of their 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 services approved shall only be provided as long as a code-sharing agreement providing for such services remains in effect.
  4. Air Canada, Sky Regional, Jazz and South African Airways 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 and South African Airways shall continue to comply with the public disclosure requirements set out in section 8.5 of the ATR.
  6. Air Canada and South African Airways 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 the flight segments operated by South African Airways 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 South Africa.
  8. Air transportation using South African Airways’ code on the flight segments operated by Air Canada, Sky Regional and Jazz shall not be sold separately and shall only be available to traffic carried on a continuous journey under South African Airways’ code between South Africa and Canada.

Member(s)

Sam Barone
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