Decision No. 531-A-2009

December 31, 2009

December 31, 2009

APPLICATION by Air Canada, on behalf of itself, Jazz Air LP and Deutsche Lufthansa Aktiengesellschaft (Lufthansa German Airlines) and its affiliates and subsidiaries, 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, Jazz Air LP (Jazz Air) and Deutsche Lufthansa Aktiengesellschaft (Lufthansa German Airlines) [Lufthansa] and its affiliates and subsidiaries, has applied to the Canadian Transportation Agency (Agency) for an approval to permit Air Canada and Lufthansa to provide their scheduled international services between Canada and Member States of the European Community (Member States) by selling transportation in their own name on each other's flights, including those operated by Jazz Air and Lufhansa's affiliates and subsidiaries, for an indefinite period.

Air Canada and Lufthansa are authorized to operate scheduled international services in accordance with the Air Transport Agreement between the Government of Canada and the European Community and its Member States, signed December 18, 2009 (Agreement).

Under the terms of the Agreement, code sharing between designated carriers and third-country carriers is permitted. That is, while providing services between Canada and Member States, the designated carriers may code share on each others' flights, including flights operated via third countries.

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 approvals requested, the Agency notes that code sharing between Canadian and Member States carriers is specifically permitted in the Agreement, subject to the normal regulatory requirements of the aeronautical authorities. Under such circumstances, the Agency considers it appropriate to grant an approval for three years only.

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 service on licensed routes between Canada and Member States, by selling transportation in its own name on flights operated by Lufthansa and its affiliates and subsidiaries.

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

These approvals are granted for a period of three years, subject to the following conditions:

  1. Air Canada and Lufthansa shall continue to hold the required licence authorities.
  2. Each carrier shall apply its published tariffs, in effect, to the carriage of its 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 transportation using Air Canada's code on flights operated by Lufthansa and its affiliates and subsidiaries between points in a Member State shall not be sold separately and shall only be available to traffic carried on a continuous journey under Air Canada's code between Canada and a Member State.
  5. Air transportation using Lufthansa's code on flights operated by Air Canada and Jazz Air between points in Canada and beyond points in Canada to points in the United States of America shall not be sold separately and shall only be available to traffic carried on a continuous journey under Lufthansa's code between Member States and Canada and the United States of America.

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.

Air Canada and Lufthansa have been granted approvals to code share on each other's flights between Canada and European countries pursuant to several Agency decisions. As a result of the approvals granted, some of those approvals are no longer necessary. Therefore, the Agency, pursuant to section 32 of the CTA, rescinds the following Decisions: 516‑A2009; 409-A-2009; 149-A-2009; 107‑A-2009; 48-A-2009; 47-A-2009; 43‑A‑2009; 427-A-2008; 390-A-2008; 143‑A‑2008; 230-A-2007; 49-A-2007; 46‑A‑2007 and 31-A-2007.

Further, the Agency, pursuant to section 32 of the CTA, varies Decision No. 46-A-2009 by deleting reference to Denmark and Sweden.

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

  • Raymon J. Kaduck
  • John Scott

Member(s)

Raymon J. Kaduck
John Scott
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