Decision No. 30-A-2016

February 2, 2016
APPLICATION by Air Canada also carrying on business as Air Canada rouge (Air Canada), on behalf of itself and Deutsche Lufthansa Aktiengesellschaft (Lufthansa German Airlines) [Lufthansa] and its affiliate Lufthansa CityLine GmbH (CityLine), 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: 
15-05905

Air Canada, on behalf of itself and Lufthansa and its affiliate CityLine, has applied to the Canadian Transportation Agency (Agency) for an approval to permit Air Canada to provide its scheduled international service between Canada and Bahrain by selling transportation in its own name on flights operated by Lufthansa and CityLine between Germany and Bahrain, for an indefinite period beginning on March 26, 2016.

Air Canada is licensed to operate, through code sharing, a scheduled international service, using large aircraft, in accordance with the Arrangement between the Government of Canada and the Government of the Kingdom of Bahrain, set out in an Agreed Minute signed on December 9, 2012.

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 CityLine, and the provision by Lufthansa and CityLine 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 Bahrain by selling transportation in its own name on flights operated by Lufthansa and CityLine between Germany and Bahrain, for an indefinite period beginning on March 26, 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, Lufthansa and CityLine 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. 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 and CityLine between Germany and Bahrain 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 Bahrain.

Member(s)

P. Paul Fitzgerald
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