Decision No. 360-A-2004

June 30, 2004

June 30, 2004

APPLICATION by Air Canada, on behalf of itself and Polskie Linie Lotnicze LOT SA (hereinafter LOT), for approval pursuant to 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 Air Canada to provide its scheduled international service between Canada and Poland by selling transportation in its own name on flights operated by LOT and its affiliates between points in Canada and points in Poland, including segments between intermediate points and points in Poland and between domestic points in Poland; and to permit LOT to provide its scheduled international service between Poland and Canada by selling transportation in its own name on flights operated by Air Canada and its affiliates between points in Poland and points in Canada, including segments between intermediate points and points in Canada and between domestic points in Canada, from July 1, 2004 to July 1, 2007.

File No. M4835-2-9


Air Canada, on behalf of itself and LOT, has applied to the Canadian Transportation Agency (hereinafter the Agency) for the approval set out in the title. The application was received on June 14, 2004.

Air Canada has also requested an exemption from the application of subsection 8.2(2) of the Air Transportation Regulations (hereinafter the ATR), which requires the filing of an application for an approval at least 45 days before the first planned flight.

Under Licence No. 975046, Air Canada is authorized to operate a scheduled international service, large aircraft, in accordance with the Agreement between the Government of Canada and the Government of the Republic of Poland on Air Transport initialled ad referendum on April 5, 2001 (hereinafter the Agreement).

Under Licence No. 985000, LOT is authorized to operate a scheduled international service in accordance with the Agreement.

With respect to the request for an exemption from the application of subsection 8.2(2) of the ATR, the Agency has considered the request and is of the opinion that compliance by Air Canada with subsection 8.2(2) of the ATR is impractical in this case. Accordingly, the Agency, pursuant to paragraph 80(1)(c) of the Canada Transportation Act (hereinafter the CTA), hereby orders that Air Canada be exempt from the application of subsection 8.2(2) of the ATR.

Under the terms of the Agreement, code-sharing between designated airlines is permitted. That is, while providing services between Canada and Poland, the designated airlines may code share on each others' flights.

The Agency has reviewed and considered the application and the material filed in support thereof and is satisfied that it meets the remaining requirements of section 8.2 of the ATR.

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

Accordingly, the Agency, pursuant to paragraph 60(1)(b) of the CTA and section 8.2 of the ATR, hereby approves the use by Air Canada of aircraft and flight crew provided by LOT and its affiliates, and the provision by LOT and its affiliates of such aircraft and flight crew to Air Canada, to permit Air Canada to provide its scheduled international air service between Canada and Poland by selling transportation in its own name on flights operated by LOT and its affiliates between points in Canada and points in Poland, including segments between intermediate points and points in Poland and between domestic points in Poland.

Additionally, the Agency hereby approves the use by LOT of aircraft and flight crew provided by Air Canada and its affiliates, and the provision by Air Canada and its affiliates of such aircraft and flight crew to LOT, to permit LOT to provide its scheduled international air service between Poland and Canada by selling transportation in its own name on flights operated by Air Canada and its affiliates between points in Poland and points in Canada, including segments between intermediate points and points in Canada and between domestic points in Canada.

This approval is effective from July 1, 2004 to July 1, 2007, subject to the following conditions:

  1. Air Canada and LOT shall continue to hold the required licence authorities.
  2. The air services approved herein shall only be provided as long as a code-sharing agreement between Air Canada and LOT providing for such services remains in effect.
  3. Each carrier shall each apply its published tariff, on file with the Agency and in effect, to the carriage of its 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.
  4. No local traffic may be carried under LOT's code between points in Canada.
  5. No local traffic may be carried under Air Canada's code between points in Poland.

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

Air Canada and LOT are further reminded to provide the Agency with a copy of any new agreement or amendments to their commercial agreement, including any new or amended annex, without delay.

The authorities granted herein do not exempt Air Canada and LOT from the requirements of other legislative acts or regulations, including those of Transport Canada.

Date modified: