Determination No. A-2017-51

May 12, 2017
APPLICATION by Air Canada also carrying on business as Air Canada rouge and as Air Canada Cargo (Air Canada), on behalf of itself and Brussels Airlines N.V./S.A. carrying on business as Brussels Airlines (Brussels Airlines), pursuant to section 60 of the Canada Transportation Act, S.C., 1996, c.10, as amended (CTA), and section 8.2 of the Air Transportation Regulations, SOR/88-58, as amended (ATR).
Case number: 
17-00639

APPLICATION

Air Canada, on behalf of itself and Brussels Airlines, has applied to the Canadian Transportation Agency (Agency) for an approval to permit Air Canada to provide its scheduled international service between Canada and the Ivory Coast by selling transportation in its own name on flights operated by Brussels Airlines between Belgium and the Ivory Coast, for an indefinite period or such period as may be authorized by the Agency beginning on May 14, 2017.

Air Canada is licensed to operate a scheduled international service, large aircraft, in accordance with the Agreement between the Government of Canada and the Government of the Republic of the Ivory Coast on Air Transport signed on September 3, 1987 (Agreement).

ANALYSIS AND FINDINGS

Authority under subsection 78(2) of the CTA

The Agency has considered the application and the material on file, and notes that the provision of services through code-sharing arrangements is not provided for in the Agreement. Therefore, Air Canada requires extra-bilateral authority, and its licence must be varied to allow for the provision of a service that is not permitted under the Agreement.

The Agency may grant temporary authority pursuant to subsection 78(2) of the CTA for a service that is not permitted in a bilateral air transport agreement or arrangement.

Condition No. 2 of Licence No. 100049 reads as follows:

The scheduled international services are to be conducted in accordance with the Agreement and any applicable arrangements agreed to between Canada and Ivory Coast.

The Agency finds it appropriate to permit Air Canada to operate its service through code sharing.

With respect to the duration of the subject authority, the Agency considers one year to be appropriate.

Accordingly, the Agency, pursuant to subsection 78(2) of the CTA, varies Condition No. 2 of the licence to permit Air Canada to provide its scheduled international service between Canada and the Ivory Coast by selling transportation in its own name on flights operated by Brussels Airlines between Belgium and the Ivory Coast, for one year beginning on May 14, 2017.

Application under section 60 of the CTA and section 8.2 of the ATR

The Agency has considered the application and the material in support and is satisfied that it meets the 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, approves the use by Air Canada of aircraft with flight crew provided by Brussels Airlines, and the provision by Brussels Airlines 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 the Ivory Coast by selling transportation in its own name on flights operated by Brussels Airlines between Belgium and the Ivory Coast, for one year beginning on May 14, 2017.

This approval is subject to the following conditions:

  1. Air Canada shall continue to hold the valid licence authority.
  2. Air Canada 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 service approved shall only be provided as long as a code-sharing agreement providing for such service remains in effect.
  4. Air Canada and Brussels Airlines shall continue to comply with the insurance requirements set out in subsections 8.2(4), 8.2(5) and 8.2(6) of the ATR.
  5. Air Canada shall continue to comply with the public disclosure requirements set out in section 8.5 of the ATR.
  6. Air Canada and Brussels Airlines shall provide the Agency with a copy of any new agreement or amendments to their code-sharing agreement, including any new or amended annex, without delay.
  7. Air transportation using Air Canada’s code on flights operated by Brussels Airlines between Belgium and the Ivory Coast 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 the Ivory Coast. No local traffic may be carried under Air Canada’s code between Belgium and the Ivory Coast.

Member(s)

Stephen Campbell
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