Decision No. 50-A-2002

January 29, 2002

January 29, 2002

APPLICATION by Air Canada, on behalf of itself and Austrian Airlines Öesterreichische Luftverkehrs AG (hereinafter Austrian Airlines), for approvals 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 Austrian Airlines, while providing its scheduled international service between Austria and Canada, to sell transportation in its own name on flights operated by Air Canada between Calgary, Alberta, and Vancouver, British Columbia, Canada, and London, United Kingdom; and Air Canada, while providing its scheduled international service between Canada and Austria, to sell transportation in its own name on flights operated by Austrian Airlines between Frankfurt, Germany, and Vienna, Austria, and between London, United Kingdom, and Vienna, Austria, commencing on February 5, 2002.

File No. M4835-2-26

Docket No. 011343AG


Air Canada, on behalf of itself and Austrian Airlines, has applied to the Canadian Transportation Agency (hereinafter the Agency) for the approvals set out in the title. The application was received on December 14, 2001.

Under Licence Nos. 975040 and 985002, Air Canada and Austrian Airlines are respectively authorized to operate scheduled international services, in accordance with the Agreement between the Government of Canada and the Austrian Federal Republic on Air Transport signed on June 22, 1993 (hereinafter the Agreement).

The Agency notes that, under the terms of the Agreement, designated air carriers are permitted to offer services through code sharing with other air carriers, including air services via third countries.

The Agency has reviewed and considered the application and the material filed in support thereof and is satisfied that it meets the requirements of section 8.2 of the Air Transportation Regulations (hereinafter the ATR).

With respect to the duration of the subject approvals, Air Canada and Austrian Airlines have requested that they be approved for a period of two years, or such longer period as the Agency considers appropriate. In this case, the Agency considers it appropriate to grant the subject approvals until December 2, 2003.

Therefore, the Agency, pursuant to paragraph 60(1)(b) of the Canada Transportation Act, S.C., 1996, c. 10 and section 8.2 of the ATR, hereby approves the use by Austrian Airlines of aircraft and flight crew provided by Air Canada, and the provision by Air Canada of such aircraft and flight crew to Austrian Airlines, to permit Austrian Airlines, while providing its scheduled international air service between Austria and Canada, to sell transportation in its own name on flights operated by Air Canada between Vancouver, British Columbia, Canada, and London, United Kingdom, and between Calgary, Alberta, Canada, and London, United Kingdom.

In addition, the Agency approves the use by Air Canada of aircraft and flight crew provided by Austrian Airlines, and the provision by Austrian Airlines of such aircraft and flight crew to Air Canada, to permit Air Canada, while providing its scheduled international air service between Canada and Austria, to sell transportation in its own name on flights operated by Austrian Airlines between London, United Kingdom and Vienna, Austria and between Frankfurt, Germany and Vienna, Austria.

These approvals are granted from February 5, 2002 to December 2, 2003, subject to the following conditions:

  1. Air Canada and Austrian Airlines shall continue to hold the required licence authorities.
  2. Air transportation using Austrian Airlines' code on Air Canada's flights between Calgary, Vancouver and London; and, using Air Canada's code on Austrian Airlines' flights between London, Frankfurt and Vienna shall not be sold separately and shall only be available to traffic carried on a continuous journey between Austria and Canada.
  3. Air Canada and Austrian Airlines shall apply their published tariffs, on file with the Agency and in effect, to the carriage of their 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. The air services approved herein shall only be provided as long as the Code-sharing Agreement between Air Canada and Austrian Airlines dated February 1, 2001 providing for such services remains in effect.

Air Canada and Austrian Airlines are reminded to advise the Agency in advance of any changes to the information provided in support of the subject application.

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

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

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