Decision No. 672-A-2000

October 27, 2000

October 27, 2000

APPLICATION by Air Canada, on behalf of itself and British Midland Airways Limited, for an approval 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 Air Canada, while providing its scheduled international air services between Canada and points in the United Kingdom, the Netherlands and Belgium, to sell transportation in its own name on flights operated by British Midland Airways Limited between London and points in the United Kingdom, the Netherlands and Belgium, for a period of five years commencing on October 30, 2000.

File No. M4835-2-31

Docket No. 000891AG


On September 14, 2000, Air Canada, on behalf of itself and British Midland Airways Limited (hereinafter British Midland), has applied to the Canadian Transportation Agency (hereinafter the Agency) for the approval set out in the title.

Under Licence No. 975038, Air Canada is authorized to operate a scheduled international service on the route(s) set out in the Agreement between the Government of the United Kingdom of Great Britain and Northern Ireland and the Government of Canada on Air Services signed on June 22, 1988 (hereinafter the UK Agreement).

Under Licence No. 990026, Air Canada is authorized to operate a scheduled international service on the route(s) set out in the Agreement between the Government of Canada and the Government of the Kingdom of the Netherlands relating to Air Transport signed on June 2, 1989.

Under Licence No. 975031, Air Canada is authorized to operate a scheduled international service on the route(s) set out in the Agreement between the Government of Canada and the Government of Belgium on Air Transport signed on May 13, 1986.

With respect to the duration of the approval requested, the Agency notes that while the Government of Canada and the Governments of the Kingdom of the Netherlands and Belgium have agreed on amendments to the respective Agreements in order to permit designated airlines to code share, including on flights operated by third country airlines, no such specific provisions have been added to the UK Agreement. The Agency further notes that previous code-share arrangements between Air Canada and British Midland have been approved for periods of up to three years. Under these circumstances the Agency is not prepared to consider approval for a period longer than three years.

The Agency has reviewed and considered the application and the material filed in support thereof and is satisfied that it meets the requirements set out in section 8.2 of the Air Transportation Regulations (hereinafter 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 British Midland, and the provision by British Midland of such aircraft and crew to Air Canada, to permit Air Canada, while providing its scheduled international services on licensed routes between Canada and points in the United Kingdom, the Netherlands and Belgium, to sell transportation in its own name on flights operated by British Midland between London, United Kingdom and points in the United Kingdom, and between London, United Kingdom and points in the Netherlands and Belgium. This approval is granted from October 30, 2000 to October 31, 2003, subject to the following conditions:

  1. Air Canada shall continue to hold the required licence authorities.
  2. Air transportation using Air Canada's code on British Midland's flights between London and points in the United Kingdom, the Netherlands and Belgium shall not be sold separately and shall only be available to Air Canada's traffic carried on a continuous journey, without stopover, between Canada, the United Kingdom, the Netherlands and Belgium.
  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 two air carriers relating to limits of liability shall diminish the rights of passengers as stated in such tariffs.

Air Canada and British Midland are reminded of the requirement to provide the Agency with a copy of any new or amended annexes and/or appendices to the code-share agreement within thirty (30) days of execution.

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

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

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