Determination No. A-2018-43

March 6, 2018

APPLICATION by Air Canada also carrying on business as Air Canada rouge and as Air Canada Cargo (Air Canada), on behalf of itself; Jazz Aviation LP, as represented by its general partner, Aviation General Partner Inc. carrying on business as Air Canada Express and as Jazz (Jazz); Air Georgian Limited carrying on business as Air Canada Express (Air Georgian); Sky Regional Airlines Inc. carrying on business as Sky Regional and as Air Canada Express (Sky Regional); and Air China Limited (Air China), 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: 
18-00921
18-00951

Air Canada, on behalf of itself, Jazz, Air Georgian, Sky Regional and Air China, has applied to the Canadian Transportation Agency (Agency) for approvals to permit:

  1. Air Canada to provide its scheduled international service between Canada and China by selling transportation in its own name on flights operated by Air China between Canada and China, including between points in China; and,
  2. Air China to provide its scheduled international service between China and Canada by selling transportation in its own name on flights operated by Air Canada between China and Canada and on flights operated by Air Canada, Jazz, Air Georgian and Sky Regional between points in Canada and between Canada and the United States of America.

These approvals are requested for an indefinite period beginning on the date of this Determination.

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 People's Republic of China on Air Transport signed on September 9, 2005 (Agreement).

Air China is licensed to operate a scheduled international service in accordance with the Agreement.

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:

  1. Air Canada of aircraft with flight crew provided by Air China, and the provision by Air China 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 China by selling transportation in its own name on flights operated by Air China between Canada and China, including between points in China; and,
  2. Air China of aircraft with flight crew provided by Air Canada, Jazz, Air Georgian and Sky Regional, and the provision by Air Canada, Jazz, Air Georgian and Sky Regional of such aircraft and flight crew to Air China, to permit Air China to provide its scheduled international service on licensed routes between China and Canada by selling transportation in its own name on flights operated by Air Canada between China and Canada and on flights operated by Air Canada, Jazz, Air Georgian and Sky Regional between points in Canada and between Canada and the United States of America.

These approvals are granted for an indefinite period from the date of this Determination, and are subject to the following conditions:

  1. Air Canada and Air China shall continue to hold the valid licence authorities.
  2. Air Canada and Air China shall apply their published tariffs, in effect, to the carriage of their 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 services approved shall only be provided as long as a code-sharing agreement providing for such services remains in effect.
  4. Air Canada and Air China 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 and Air China shall continue to comply with the public disclosure requirements set out in section 8.5 of the ATR.
  6. Air Canada and Air China 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 China's code on flights operated by Air Canada, Jazz, Air Georgian and Sky Regional between points in Canada shall not be sold separately and shall only be available to traffic carried on a continuous journey under Air China's code between China and Canada. No local traffic may be carried under Air China's code between points in Canada.

As a result of the approval granted in this Determination, Decision No. 360-A-2016 is now redundant.

Accordingly, the Agency, pursuant to section 32 of the CTA, rescinds Decision No. 360-A-2016.

Member(s)

Sam Barone
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