Decision No. 341-A-2013

August 28, 2013

APPLICATION by Air Canada also carrying on business as Air Canada rouge, on behalf of itself and Deutsche Lufthansa Aktiengesellschaft (Lufthansa German Airlines) and its affiliate Lufthansa CityLine GmbH, 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.: 
M4835-2-5

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), has applied to the Canadian Transportation Agency (Agency) for an approval to permit Air Canada to provide its scheduled international service between Canada and Kuwait by selling transportation in its own name on flights operated by Lufthansa and CityLine between Germany and Kuwait, for a period of three years or such longer period as may be authorized by the Agency commencing October 28, 2013.

Air Canada is licensed to operate a scheduled international service, large aircraft, in accordance with the Agreement between the Government of Canada and the Government of the State of Kuwait on Air Transport, initialled ad referendum on May 8, 2007 (Agreement).

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).

With respect to the duration of the approval requested, in light of the provisions of the Agreement, the Agency considers three years to be appropriate.

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 Air Canada of aircraft and 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 Kuwait by selling transportation in its own name on flights operated by Lufthansa and CityLine between Germany and Kuwait, from October 28, 2013 to October 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, 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. 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 Kuwait 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 Kuwait. No local traffic may be carried under Air Canada’s code between Germany and Kuwait.

Member(s)

J. Mark MacKeigan
Jean-Denis Pelletier, P.Eng.
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