Decision No. 507-A-2004

September 27, 2004

September 27, 2004

APPLICATION by Air Canada, on behalf of itself and Air Jamaica Limited, for extra-bilateral authority and approvals pursuant to subsection 78(2) and 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 the air carriers to provide their respective scheduled international services between Canada and Jamaica by selling transportation in their own name on each other's flights effective October 31, 2004.

File No. M4835-2-22


Air Canada, on behalf of itself and Air Jamaica Limited (hereinafter Air Jamaica), has applied to the Canadian Transportation Agency (hereinafter the Agency) for the authority and approvals set out in the title. The application was received on September 13, 2004.

Under Licence Nos. 975033 and 975132, Air Canada and Air Jamaica are respectively authorized to operate scheduled international services in accordance with the Agreement between the Government of Canada and the Government of Jamaica on Air Transport signed on October 18, 1985 (hereinafter the Agreement).

Condition No. 2 of Licence Nos. 975033 and 975132 reads as follows:

  1. The operation of the scheduled international service authorized herein shall be conducted subject to the provisions of the Agreement and to any applicable arrangements as may be agreed to between Canada and Jamaica.

The Agency has reviewed and considered the application and the material filed in support thereof, and notes that provision of services through code-sharing arrangements is not provided for in the Agreement.

In its consideration of this application, the Agency has determined that in order to operate as proposed, Condition No. 2 of Air Canada's Licence No. 975033 and of Air Jamaica's Licence No. 975132 must be varied to allow for the provision of services not permitted under the Agreement.

With respect to the duration of the approval and the licence condition variances that would permit the operation of the proposed services, the Agency is prepared to grant approvals and licence condition variances until March 26, 2005.

Accordingly, the Agency, pursuant to subsection 78(2) of the Canadian Transportation Act (hereinafter the CTA), hereby varies Condition No. 2 of Air Canada's Licence No. 975033 to the extent necessary to allow Air Canada to provide services between Canada and Jamaica by selling transportation in its own name on flights operated by Air Jamaica between Toronto, Ontario, Canada and Kingston, Jamaica from October 31, 2004 to March 26, 2005.

In addition, the Agency hereby varies Condition No. 2 of Air Jamaica's Licence No. 975132 to the extent necessary to authorize Air Jamaica to provide services between Jamaica and Canada by selling transportation in its own name on flights operated by Air Canada between Montego Bay, Jamaica and Toronto from October 31, 2004 to March 26, 2005.

With respect to Air Canada's and Air Jamaica's request for approval under section 60 of the CTA and section 8.2 of the Air Transportation Regulations (hereinafter the ATR), the Agency is satisfied that the application meets the requirements of section 8.2 of the ATR.

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 Air Jamaica, and the provision by Air Jamaica of such aircraft and flight crew to Air Canada, to permit Air Canada, to provide its scheduled international services between Canada and Jamaica, by selling transportation in its own name on flights operated by Air Jamaica between Toronto and Kingston from October 31, 2004 to March 26, 2005.

In addition, the Agency hereby approves the use by Air Jamaica of aircraft and flight crew provided by Air Canada, and the provision by Air Canada of such aircraft and flight crew to Air Jamaica, to permit Air Jamaica, to provide its scheduled international services between Jamaica and Canada, by selling transportation in its own name on flights operated by Air Canada between Montego Bay and Toronto from October 31, 2004 to March 26, 2005. These approvals are subject to the following conditions:

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

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

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

The approval granted herein does not exempt Air Canada and Air Jamaica from the requirements of other legislative acts or regulations, including those of Transport Canada.

This Decision shall form part of Licence Nos. 975033 and 975132 and shall remain affixed thereto until March 26, 2005.

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