Decision No. 754-A-2000

December 1, 2000

December 1, 2000

APPLICATION by Canadian Airlines International Ltd. carrying on business under the firm name and style of Canadian Airlines International or Canadi*n Airlines or Canadi*n (hereinafter Canadi*n), on behalf of itself and Air New Zealand Limited (hereinafter Air New Zealand), 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 Canadi*n, while providing its scheduled international service between Canada and New Zealand, to block space and sell transportation in its own name on flights operated by Air New Zealand between Los Angeles, California, United States of America and New Zealand, and to permit Air New Zealand, while providing its scheduled international service between New Zealand and Canada, to block space and sell transportation in its own name on flights operated by Canadi*n between Los Angeles, California, United States of America and Canada, from December 4, 2000 to December 31, 2000.

File No. M4835-3-17

Docket No. 001159AG


Canadi*n, on behalf of itself and Air New Zealand, has applied to the Canadian Transportation Agency (hereinafter the Agency) for the approval set out in the title. The application was received on November 28, 2000.

Under Licence No. 975014, Canadi*n is authorized to operate a scheduled international service in accordance with the Agreement between the Government of Canada and the Government of New Zealand on Air Transport signed on September 4, 1985, as amended (hereinafter the Agreement).

Under Licence No. 975133, Air New Zealand is authorized to operate a scheduled international service in accordance with the Agreement.

The applicants have 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 an approval at least 45 days before the first planned flight. The applicants submit that it was decided only recently that Canadi*n's, rather than Air Canada's, aircraft would be operated between Canada and Los Angeles and that compliance with subsection 8.2(2) is impractical and undesirable as the amalgamation of Air Canada and Canadi*n will take place on January 1, 2001, at which time the requested approval will no longer be necessary.

The Agency has considered the request and is of the opinion that compliance by Canadi*n and Air New Zealand with subsection 8.2(2) of the ATR is impractical and undesirable in this case. Accordingly, the Agency, pursuant to paragraph 80(1)(c) of the Canada Transportation Act (hereinafter the CTA), hereby orders that Canadi*n and Air New Zealand be exempt from the application of subsection 8.2(2) of the ATR.

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 Canadi*n of aircraft and flight crew provided by Air New Zealand, and the provision by Air New Zealand of such aircraft and flight crew to Canadi*n, to permit Canadi*n, while providing its scheduled international service between Canada and New Zealand, to block space and sell transportation in its own name on flights operated by Air New Zealand between Los Angeles and New Zealand. In addition, the Agency hereby approves the use by Air New Zealand of aircraft and flight crew provided by Canadi*n, and the provision by Canadi*n of such aircraft and flight crew to Air New Zealand, to permit Air New Zealand, while providing its scheduled international service between New Zealand and Canada, to block space and sell transportation in its own name on flights operated by Canadi*n between Los Angeles and Canada. This approval is granted for the period from December 4, 2000 to December 31, 2000, subject to the following conditions:

  1. Canadi*n and Air New Zealand shall continue to hold the required licence authorities.
  2. The air services approved herein shall only be provided as long as the Code Share Agreement between Canadi*n and Air New Zealand dated April 4, 2000, providing for such services, remains in effect.
  3. Canadi*n and Air New Zealand shall apply their published tariffs, on file with the Agency and in effect, to the carriage of their 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.
  4. Air transportation using Canadi*n's code code on flights between Los Angeles and New Zealand shall be available only as part of a continuous journey between Canada and New Zealand under Canadi*n's code. No local traffic may be carried under Canadi*n's code between Los Angeles and New Zealand; however, stopovers for Canadi*n's passengers are permitted at Los Angeles.
  5. Air transportation using Air New Zealand's code on flights between Los Angeles and Canada shall be available only as part of a continuous journey between New Zealand and Canada under Air New Zealand's code. No local traffic may be carried under Air New Zealand's code between Los Angeles and Canada; however, stopovers for Air New Zealand's passengers are permitted at Los Angeles.

Canadi*n and Air New Zealand are reminded of the continuing requirement to comply with sections 8.2 and 8.5 of the ATR.

Canadi*n and Air New Zealand are further reminded to provide the Agency with a copy of any amendment to their Code Share Agreement, or any new or amended appendix, upon signature.

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

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