Decision No. 550-A-2008

October 27, 2008

Amended by Decision No. 21-A-2009

October 27, 2008

APPLICATION by Air Canada, on behalf of itself, Jazz Air LP and Swiss International Air Lines Ltd. also carrying on business as Swiss, 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. M4835-2-51


On September 8, 2008, Air Canada, on behalf of itself, Jazz Air LP (Jazz Air) and Swiss International Air Lines Ltd. also carrying on business as Swiss (Swiss), applied to the Canadian Transportation Agency (the Agency) for approvals to permit:

  • Air Canada to provide its scheduled international services between Canada and Switzerland, Greece, Italy and India by selling transportation in its own name on flights operated by Swiss and its affiliates and subsidiaries between Canada and Switzerland, including between intermediate points and Switzerland, between domestic points in Switzerland, and between Switzerland and Greece, Italy and India; and,
  • Swiss to provide its scheduled international services between Switzerland and Canada by selling transportation in its own name on flights operated by Air Canada and Jazz Air between Canada and Switzerland, including between intermediate points and Canada, and between domestic points in Canada.

Under Licence Nos. 975036, 975004, 975044, and 975037, Air Canada is authorized to operate, among others, scheduled international services, using large aircraft, in accordance with air transport agreements between Canada and, respectively, Switzerland, Greece, Italy and India.

Under Licence No. 020037, Swiss is authorized to operate a scheduled international service in accordance with the Air Transport Agreement between the Government of Canada and the Government of the Swiss Confederation, signed on February 20, 1975.

Under the terms of Canada's air transport agreements with Switzerland, Greece, Italy and India, code sharing between airlines is permitted. That is, the designated airlines may code share on flights operated by other airlines, including services to or 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 (the ATR).

With respect to the duration of the approvals requested, in light of the provisions of Canada's air transport agreements with Switzerland, Greece, Italy and India, the Agency considers that a three-year term would be appropriate.

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 Swiss and its affiliates and subsidiaries, and the provision by Swiss and its affiliates and subsidiaries of such aircraft and flight crew to Air Canada, to permit it to provide its scheduled international services on licensed routes between Canada and Switzerland, Greece, Italy and India, including between intermediate points and Switzerland, between domestic points in Switzerland, and between Switzerland and Greece, Italy and India, by selling transportation in its own name on flights operated by Swiss and its affiliates and subsidiaries; and,
  • the use by Swiss 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 Swiss, to permit it to provide its scheduled international services on licensed routes between Switzerland and Canada, including between intermediate points and Canada, and between domestic points in Canada, by selling transportation in its own name on flights operated by Air Canada and Jazz Air.

These approvals are granted from October 30, 2008 to October 29, 2011, subject to the following conditions:

  1. Air Canada and Swiss 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 approved air services shall only be provided as long as a code-sharing agreement providing for such services remains in effect.
  4. Air transportation using Swiss' code on flights operated by Air Canada and Jazz Air between intermediate points and Canada and between domestic points in Canada shall be available only as part of a continuous journey between Switzerland and Canada.
  5. Air transportation using Air Canada's code on flights operated by Swiss and its affiliates and subsidiaries between intermediate points and Switzerland, between domestic points in Switzerland, and between points in Switzerland and points beyond Switzerland shall be available only as part of a continuous journey between Canada and Switzerland, Greece, Italy and India.

Air Canada, Jazz Air and Swiss 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 Swiss 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 Air and Swiss and its affiliates and subsidiaries from the requirements of other legislative acts or regulations, including those of Transport Canada.

Members

  • John Scott
  • J. Mark MacKeigan
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