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AC & SAS Codeshare Agreement


Guest M. McRae

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Guest M. McRae

Decision No. 509-A-2003

September 9, 2003

APPLICATION by Air Canada, on behalf of itself and Scandinavian Airlines System (SAS), 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 the air carriers, while providing their respective scheduled international air services between Canada and each of Denmark, Norway and Sweden, to sell transportation in their own name on each other's flights, including those operated by their respective affiliates and subsidiaries, from September 11, 2003 to May 26, 2006.

File No. M4835-2-34

Docket Nos. 031015

031016

031017

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Air Canada, on behalf of itself and Scandinavian Airlines System (SAS) (hereinafter SAS), has applied to the Canadian Transportation Agency (hereinafter the Agency) for the approval set out in the title. The application was received on July 28, 2003.

Under Licence No. 970132, Air Canada is authorized to operate a scheduled international service in accordance with the Agreement between the Government of Canada and the Government of the Kingdom of Sweden on Air Transport initialled, ad referendum, on February 17, 1989.

Under Licence No. 970133, Air Canada is authorized to operate a scheduled international service in accordance with the Agreement between the Government of Canada and the Government of the Kingdom of Denmark on Air Transport initialled, ad referendum, on February 17, 1989.

Under Licence No. 970146, Air Canada is authorized to operate a scheduled international service in accordance with the Agreement between the Government of Canada and the Government of the Kingdom of Norway on Air Transport initialled, ad referendum, on February 17, 1989.

Under Licence No. 970116, SAS is authorized to operate a scheduled international service in accordance with the Agreement between the Government of Canada and the Government of the Kingdom of Norway on Air Transport initialled, ad referendum, on February 17, 1989.

Under Licence No. 975154, SAS is authorized to operate a scheduled international service in accordance with the Agreement between the Government of Canada and the Government of the Kingdom of Sweden on Air Transport initialled, ad referendum, on February 17, 1989.

Under Licence No. 975155, SAS is authorized to operate a scheduled international service in accordance with the Agreement between the Government of Canada and the Government of the Kingdom of Denmark on Air Transport initialled, ad referendum, on February 17, 1989.

The Agency notes that by Decision No. 554-A-2000 dated August 25, 2000, Air Canada and SAS are authorized, inter alia, to code share on each other's services between Canada and Norway, Sweden and Denmark until September 10, 2003.

The Agency has reviewed and considered the application and the material filed in support thereof and is satisfied that it meets the requirements of section 8.2 of the ATR.

The Agency notes that bilateral arrangements with Denmark, Norway and Sweden specifically grant the right for designated airlines to enter into code sharing arrangements on each other's flights, including subsidiaries and affiliated airlines.

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 and SAS of aircraft and crew belonging to the other air carrier or its affiliates and subsidiaries, and the provision by Air Canada, SAS and their respective affiliates and subsidiaries of such aircraft and crew to the other air carrier so that Air Canada and SAS may sell transportation in their own name on flights operated by the other air carrier or its affiliates and subsidiaries on licensed routes, including segments thereof, between points in Canada and points in each of Denmark, Norway and Sweden. This approval is granted from September 11, 2003 to May 26, 2006, subject to the following conditions:

Air Canada and SAS shall continue to hold the required licence authorities.

The sale of transportation by SAS in its own name on flights operated by Air Canada's affiliates or subsidiaries shall be limited to flights operated under the Air Canada code by Zip Air Inc carrying on business as Zip and by Jazz Air Inc. carrying on business as Air Nova, Air Alliance, Air Ontario, AirBC, Canadian Regional and Air Canada Jazz, provided these air carriers hold appropriate licence authorities.

The sale of transportation by Air Canada in its own name on flights operated by SAS's affiliates or subsidiaries shall be limited to flights operated under the SAS code by SAS Commuter Consortium provided the air carrier operating the service holds the appropriate licence authority.

The carriage of local traffic between points in Canada using the code of SAS is prohibited.

The air services approved herein shall only be provided as long as the Code Share Agreement between Air Canada and SAS providing for such services remains in effect.

Each of Air Canada and SAS 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.

Air Canada, SAS and their respective affiliates and subsidiaries are reminded of the continuing requirement to comply with sections 8.2 and 8.5 of the ATR.

Air Canada and SAS are further reminded to provide the Agency with a copy of any amendments to the 1997 Commercial Agreement or any new or amended annex.

The approval granted herein does not exempt Air Canada, SAS and their respective affiliates and subsidiaries from the requirements of other legislative acts or regulations, including those of Transport Canada.

http://www.cta-otc.gc.ca/rulings-decisions/decisions/2003/A/509-A-2003_e.html

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