Decision No. 31-A-2013

January 31, 2013

APPLICATION by Air Canada, on behalf of itself and United Air Lines, Inc., pursuant to section 60 of the Canada Transportation Act, S.C., 1996, c. 10, as amended, and section 8.2 of the Air Transportation Regulations, SOR/88-58, as amended.

File No.: 
M4835-2-28

Air Canada, on behalf of itself and United Air Lines, Inc. (United), has applied to the Canadian Transportation Agency (Agency) for approvals to permit:

  1. Air Canada to provide its scheduled international services between Canada and member states of the European Community by selling transportation in its own name on flights operated by United; and
  2. United to provide its scheduled international services between the United States of America and member states of the European Community by selling transportation in its own name on flights operated by Air Canada.

These approvals are requested for a period of 3 years or such longer period as may be authorized by the Agency.

Air Canada is licensed to operate scheduled international services, large aircraft, in accordance with the Agreement on Air Transport between Canada and the European Community and its Member States, signed on December 18, 2009.

Air Canada is licensed to operate a scheduled international service, large aircraft, between Canada and the United States of America and beyond to third countries in accordance with the Air Transport Agreement between the Government of Canada and the Government of the United States of America signed on March 12, 2007 (Canada-United States Agreement).

United is licensed to operate a scheduled international service in accordance with the Canada-United States Agreement. United is also authorized to provide services beyond Canada to, among others, points in the member states with traffic rights.

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 Air Transportation Regulations (ATR).

Accordingly, the Agency, pursuant to paragraph 60(1)(b) of the Canada Transportation Act and section 8.2 of the ATR, approves the use by:

  1. Air Canada of aircraft and flight crew provided by United, and the provision by United of such aircraft and flight crew to Air Canada, to permit Air Canada to provide its scheduled international services on licensed routes between Canada and member states of the European Community by selling transportation in its own name on flights operated by United; and
  2. United of aircraft and flight crew provided by Air Canada, and the provision by Air Canada of such aircraft and flight crew to United, to permit United to provide its scheduled international services on licensed routes between the United States of America and member states of the European Community by selling transportation in its own name on flights operated by Air Canada.

These approvals are granted for an indefinite period commencing February 4, 2013, and are subject to the following conditions:

  1. Air Canada and United shall continue to hold the valid licence authorities.
  2. Air Canada and United 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 and United 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 United shall continue to comply with the public disclosure requirements set out in section 8.5 of the ATR.
  6. Air Canada and United shall provide the Agency with a copy of any new agreement or amendments to their commercial agreement, including any new or amended annex, without delay.
  7. These approvals do not apply to the carriage of cargo.

Member(s)

Raymon J. Kaduck
Jean-Denis Pelletier, P.Eng.
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