Decision No. 385-A-2011

October 27, 2011

APPLICATION by United Air Lines, Inc., on behalf of itself and Air Canada, 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

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

  1. Air Canada to provide its scheduled international service between Canada and Norway by selling transportation in its own name on flights operated by United between the United States of America and Norway; and
  2. United to provide its scheduled international service between the United States of America and Norway by selling transportation in its own name on flights operated by Air Canada between Canada and Norway.

These approvals are requested for an indefinite period or such period as may be authorized by the Agency.

As the application was filed less than 45 days before the first planned flight, as required by subsection 8.2(2) of the Air Transportation Regulations (ATR), an exemption from the application of this provision is necessary. The Agency finds that compliance with subsection 8.2(2) of the ATR is impractical in this case. Accordingly, the Agency, pursuant to paragraph 80(l)(c) of the Canada Transportation Act (CTA), exempts United from the application of subsection 8.2(2) of the ATR.

Air Canada is licensed to operate a scheduled international service in accordance with the Agreement between the Government of Canada and the Government of the Kingdom of Norway on Air Transport, initialled ad referendum on February 17, 1989 (Canada-Norway Agreement).

United is licensed to operate a scheduled international 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. The licence also authorizes United to provide services beyond Canada to, among others, points in Norway with traffic rights.

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

With respect to the duration of the approvals requested, in light of the provisions of the Canada-Norway Agreement, the Agency considers three years to be appropriate.

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 United, and the provision by United 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 Norway by selling transportation in its own name on flights operated by United between the United States of America and Norway; 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 service on licensed routes between the United States of America and Norway by selling transportation in its own name on flights operated by Air Canada between Canada and Norway.

These approvals are granted for a period of three years from the date of this Decision, 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 code-sharing agreement, including any new or amended annex, without delay.

Member(s)

Raymon J. Kaduck
Jean-Denis Pelletier, P.Eng.
Date modified: