CTA: APPLICATION by Air Canada also carrying on business as Air Canada rouge and as Air Canada Cargo

Air Canada, on behalf of itself and Turkish Airlines, has applied to the Canadian Transportation Agency (Agency) for extra bilateral authorities to permit:

1. Air Canada to serve the additional point Izmir, Turkey by selling transportation in its own name on flights operated by Turkish Airlines between points in Turkey; and,
2. Turkish Airlines to serve each of the following additional points: Vancouver, British Columbia; Calgary and Edmonton, Alberta; Ottawa, Ontario; Bagotville, Québec, Rouyn-Noranda, Sept-Îles and Val-d'Or, Quebec; Bathurst, Fredericton, Moncton and Saint John, New Brunswick; Halifax, Nova Scotia; and St. John's, Newfoundland and Labrador by selling transportation in its own name on flights operated by Air Canada and Air Canada Express carriers between points in Canada.

These authorities are requested for such period as may be authorized by the Agency, beginning on March 29, 2018.

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 Turkey on Air Transport initialed ad referendum on March 13, 2009 (Agreement).

Turkish Airlines is licensed to operate a scheduled international service in accordance with the Agreement.

Under the terms of the Agreement, Canadian carriers may operate services to two points in Turkey, and Turkish carriers may operate services to two points in Canada. Istanbul and Ankara have been selected by the Government of Canada, and Toronto, Ontario and Montréal, Quebec have been selected by the Government of Turkey. There is no provision for additional points to be served. Therefore, Air Canada and Turkish Airlines require extra-bilateral authorities to offer services to the additional points through code sharing.

The Agency may, pursuant to subsection 78(2) of the CTA, vary the terms and conditions of a licence on a temporary basis for international air services which are not permitted in an agreement.

The Agency has considered the application and the material in support and finds it appropriate to grant these authorities.

Accordingly, the Agency, pursuant to subsection 78(2) of the CTA, varies Condition No. 1 of Air Canada's Licence No. 100103 to the extent necessary to permit it to provide service to Izmir, through code sharing, for a period of one year beginning on March 29, 2018.

Further, the Agency, pursuant to subsection 78(2) of the CTA, varies Condition No. 1 of Turkish Airlines' Licence No. 090063 to the extent necessary to permit it to provide service to each of the following cities: Vancouver, Calgary, Edmonton, Ottawa, Bagotville, Québec, Rouyn Noranda, Sept-Îles, Val-d'Or, Bathurst, Fredericton, Moncton, Saint John, Halifax and St. John's, through code sharing, for a period of one year beginning on March 29, 2018.

In all other respects, the services shall be operated in accordance with the Agreement.

In Decision No. 13-A-2016, as varied by Decision No. 31-A-2016, the Agency approved, among others, the use by:

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

Consequently, no further code-share approval is required in respect of services to the additional points authorized by this Determination.