Decision No. 539-A-2002

September 30, 2002

September 30, 2002

APPLICATION by Air Canada, on behalf of itself and Deutsche Lufthansa Aktiengesellschaft (Lufthansa German Airlines) (hereinafter Lufthansa), for an approval pursuant to section 60 of the Air Transportation Regulations, SOR/88-58, as amended, to permit Air Canada, while providing its scheduled international services between Canada and Italy, to sell transportation in its own name on flights operated by Lufthansa between Frankfurt, Germany and Venice, Italy and between Frankfurt and Bologna, Italy, for a period of three years.

File No. M4835-2-5Docket No. 021171AG


Air Canada, on behalf of itself and Lufthansa, has applied to the Canadian Transportation Agency (hereinafter the Agency) for the approval set out in the title. The application was received on September 25, 2002.

Air Canada has also requested an exemption from the application of subsection 8.2(2) of the Air Transportation Regulations (hereinafter the ATR), which requires the filing of an application for approval at least 45 days before the first planned flight.

Under Licence No. 975004, Air Canada is authorized to operate a scheduled international service, large aircraft, in accordance with the Agreement on Air Transport between the Government of Canada and the Government of Italy signed ad referendum on May 16, 2002 (hereinafter the Agreement).

With respect to the request for an exemption from the application of subsection 8.2(2) of the ATR, the Agency has considered the request and is of the opinion that compliance by Air Canada with subsection 8.2(2) of the ATR is impractical in this case. Accordingly, the Agency, pursuant to paragraph 80(1)(c) of the Canada Transportation Act (hereinafter the CTA), hereby orders that Air Canada be exempt from the application of subsection 8.2(2) of the ATR.

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

The Agency has reviewed and considered the application and the material filed in support thereof and is satisfied that it meets the remaining 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 Lufthansa, and the provision by Lufthansa of such aircraft and flight crew to Air Canada, to permit Air Canada, while providing its scheduled international air services between Canada and Italy, to sell transportation in its own name on flights operated by Lufthansa between Frankfurt, Germany and Venice, Italy and between Frankfurt and Bologna, Italy, from the date of this Decision until September 30, 2005, subject to the following conditions:

  1. Air Canada shall continue to hold the required licence authority.
  2. The air services approved herein shall only be provided as long as a code-sharing agreement between Air Canada and Lufthansa providing for such services remains in effect.
  3. Air Canada 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.

Air Canada and Lufthansa 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 amendments to their code-sharing agreement or of any new or amended annex.

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

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