Decision No. 405-A-2009

September 29, 2009

September 29, 2009

APPLICATION by Air Canada, on behalf of itself and Deutsche Lufthansa Aktiengesllschaft (Lufthansa German Airlines), 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, on behalf of itself and Deutsche Lufthansa Aktiengesllschaft (Lufthansa German Airlines) [Lufthansa], has applied to the Canadian Transportation Agency (Agency) for an approval to permit Air Canada to provide its scheduled international services between Canada and Algeria by selling transportation in its own name on flights operated by Lufthansa and its affiliates and subsidiaries between Germany and Algiers, Algeria, for a period of three years or such longer period as may be authorized by the Agency, commencing on October 29, 2009.

The Agency notes that this application is a renewal of the approval granted by Decision No. 570-A-2006.

Under Licence No. 060090, Air Canada is authorized to operate scheduled international services in accordance with the Agreement between the Government of Canada and the Government of the People's Democratic Republic of Algeria on Air Transport initialled ad referendum on July 5, 2006 (Agreement).

Under the terms of the Agreement, code sharing between designated airlines and third-country carriers is permitted. That is, while providing services between Canada and Algeria, the designated airlines may code share on each other's flights, or on flights operated by a carrier of a third country.

The Agency has reviewed and 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 that a term of three years would 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 its affiliates and subsidiaries, and the provision by Lufthansa and its affiliates and subsidiaries 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 Algeria by selling transportation in its own name on flights operated by Lufthansa and its affiliates and subsidiaries between Germany and Algiers, from October 29, 2009 to October 28, 2012, subject to the following conditions:

  1. Air Canada shall continue to hold the required licence authority.
  2. Air Canada shall apply its published tariffs, 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.
  3. The air service approved shall only be provided as long as a code-sharing agreement providing for such services remains in effect.
  4. The approval granted does not apply to the carriage of cargo.

Air Canada and Lufthansa and its affiliates and subsidiaries are reminded of the continuing requirement to comply with sections 8.2 and 8.5 of the ATR.

Air Canada and Lufthansa 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.

This approval does not exempt Air Canada and Lufthansa and its affiliates and subsidiaries from the requirements of other legislative acts or regulations, including those of Transport Canada.

Members

  • John Scott
  • J. Mark MacKeigan

Member(s)

J. Mark MacKeigan
John Scott
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