Decision No. 454-A-2009

October 29, 2009

October 29, 2009

APPLICATION by Air Canada, on behalf of itself, Jazz Air LP and Continental Airlines, Inc. and its regional and affiliated carriers, 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. M4835-2-32


Air Canada, on behalf of itself, Jazz Air LP (Jazz) and Continental Airlines, Inc. (Continental) and its regional and affiliated carriers, has applied to the Canadian Transportation Agency (Agency) for an approval to permit Air Canada to provide its scheduled international service between Canada and the United States of America by selling transportation in its own name on flights operated by Continental and its regional and affiliated carriers. The application is also for an approval to permit Continental to provide its scheduled international service between the United States of America and Canada by selling transportation in its own name on flights operated by Air Canada and Jazz. Air Canada has requested these approvals for an indefinite period commencing October 31, 2009.

Air Canada, Jazz, Continental and its regional and affiliated carriers are licensed to operate scheduled international services 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 (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 the United States of America, 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).

The Agency notes that code sharing is specifically permitted in the Agreement, subject to the normal regulatory requirements of the aeronautical authorities. Furthermore, the carriers from the United States of America have unrestricted access to Canada for transborder services. Under such circumstances, the Agency considers it appropriate to grant the approvals for an indefinite period.

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 Continental and its regional and affiliated carriers, and the provision by Continental and its regional and affiliated carriers 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 the United States of America by selling transportation in its own name on flights operated by Continental and its regional and affiliated carriers.

In addition, the Agency approves the use by Continental of aircraft and flight crew provided by Air Canada and Jazz, and the provision by Air Canada and Jazz of such aircraft and flight crew to Continental, to permit Continental to provide its scheduled international service on licensed routes between the United States of America and Canada by selling transportation in its own name on flights operated by Air Canada and Jazz.

These approvals are granted for an indefinite period commencing October 31, 2009 and are subject to the following conditions:

  1. Air Canada and Continental shall continue to hold the required licence authorities.
  2. Each carrier 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 services approved shall only be provided as long as a code-sharing agreement providing for such services remains in effect.

Air Canada, Air Jazz and Continental and its regional and affiliated carriers are reminded of the continuing requirement to comply with sections 8.2 and 8.5 of the ATR.

Air Canada and Continental 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.

These approvals do not exempt Air Canada, Jazz and Continental and its regional and affiliated carriers 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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