BEFORE THE DEPARTMENT OF TRANSPORTATION WASHINGTON , D.C. Application of AIR CANADA for renewal of a Statement of Authorization

ursuant to 14 C . F . R. 212 Docket OST-2012 - 0196

APPLICATION OF AIR CANADA FOR RENEWAL OF A STATEMENT OF AUTHORIZATION Commun i cat i ons concerning th i s docu m ent may be served upo n : Anita M . M osner Jen ni fe r M . N owak Holland 

### & Knight LLP 80 0 17T H Street, NW Suite 11 00 Was h ingt on , DC 20006 Tel : (202) 419 - 2604 Fax : (202) 955 - 5564 a nita .m osner@h k law .com Counsel for Air Canada Nove m ber 17, 20 14 NOTICE : Any person may file an answer to this application. Answers must b e filed on or before November 26 , 2014 .Appl i cation of AIR CA NADA BEFORE THE DEPARTMENT OF TRANSPORTATION WASHINGTON , D.C .

Do c ket OST-2012-0196 f or ren ew a l of a State m e nt of Authori zat i on

ursu a nt t o 14 C . F.R. 212 APPLICATION OF AI R CANADA FOR RENEWAL OF A STATEMENT OF AUTHORIZATION Pursuant to 14 C.F.R. Part 212 , Air Canada hereby applies for renewal of its Statement of Authorization which permits Air Canada to display the South African Airways ("SAA' ') "SA*" airline designator code on ce rtai n flights operated by Air Canada pu rsua nt to its rec i p rocal codesha re a r rangeme nt wit h SAA. T he Statement of Authorization was originally issued on December 4 , 2012 in the above-captioned docket. The authority is scheduled to expi re on January 2 , 2015. I n support of its Application , Air Canada submits the following : 1 . Air Canada requests renewal of t h e Statement of Autho rization which perm its it to display SAA's SA* designator code on flights operated by Ai r Canada 1 between points in Canada and SAA's U . S . gateways that connect wi t h SAA' s service to South Africa . SAA does not and will not carry local t raffic between the U.S . and Canada . 1 Some of the flights operated under this arrangement may be performed by Jazz Aviation ("Jazz") LP , Sky Regional Airlines lnc ./Lignes Aeriennes Sky Regional Inc. ("Sky Regional"), or Ai r Georgian Limited ("Air Georgian"), carrying the AC* code . Jazz holds a Foreign Air Carrier Permit and has broad-based authority to display the AC* code on its fl ights. O rde r 2009-6-13, Docket OST-2009 -0024 ; Air Canada/Jazz Statement of Authorization , Docket OST-2009-0025 (Feb . 25 , 2009) . Sky Regional holds a Fore ign A i r Carrier Permit and holds a Statement of Authorization to operate U . S.-Canada trans-border services on behalf of A i r Canada. Order 2011-7-11 , Docket OST-2011-0045 ; Notice of Act ion Taken in Docket OST-2013-0010 (Aug . 13, 2013). A i r Georg ian holds a Foreign A i r Carrier Permit and a Statement of Authorizat ion to disp l ay the AC* des ignator code on fl ights i t operates between the U . S . and Canada . Order 2003-8-3 , Docket OST-2002-11526 ; Department Action on Application , Dockets OST-2000-7012 , OST-2000 -7771 , and OST-2013-0156 (Aug . 19 , 2013) .

### Air Canada Application for Renewal 2 . A i r Canada and SAA continue to hold the underlying economic authority required to provide this codeshare service . 3. Air Canada holds a foreign air carrier permit that authorizes it , inter alia, to engage in scheduled foreign air transportation of persons , property , and mail from points behind Canada , via Canada and intermediate points , to a point or points in the United States and beyond. Order 2008 - 9-23 (July 18 , 2008) , Docket No . OST-2007- 28768. Under the U .S.-Canada Open Skies Agreement, Air Canada may offer this service either on its own, or in conjunction with a codeshare partner (or partners). See U . S .-Canada Open Ski es Agreement, Para . 6 , Art . 11. 4 . SAA holds exemption authority to engage in scheduled foreign air transportation of persons , property , and mail between: a . Johannesburg and New York , New York via llha do Sal, Cape Verde ; b . Johannesburg/Cape Town and Miami, Florida; c . Johannesburg and Los Angeles , California (and on this Los Angeles route , to commingle blind sector traffic not moving in foreign a i r transportat i on between Johannesburg and Rio de Janeiro , Brazil) ; d . Johannesburg/Cape Town and Atlanta , Georgia , via llha do Sal , Cape Verde ; e. Johannesburg/Cape Town and Washington, DC, via llha do Sal, Cape Verde; 2 

### f . SAA's U . S . gateways and Dakar, Senegal , as an intermediate point on SAA's authorized U .S .-South Africa services ; 3 

### and g . SAA's U .S . gateways and South Afri ca via intermed i ate points with local traffic rights as permissible under the U.S.-South Africa Agreement and via other intermediate points without local traffic rights . 4

2 Notice of Act ion Taken , Dockets DOT-OST- 1999-6555 and DOT-OST-2000 -6756 (Feb . 18 , 2011 ). SAA t i me ly fil ed an appl icat ion for renewa l of its exempti on authority i n these dockets on February 8 , 20 1 3 . Its authority rema i ns i n effect pursuant to the automatic extens ion provis ions of 5 U . S .C . § 558(c) , as i mplemented by Part 377 of the Department' s procedura l regulations . 3 Notice of Action Taken , Docket OST-2002 - 13366, dated March 21 , 2005 . 

### 2

### Air Canada Appl i cat i on for Renewal The Department also has authorized SAA , inter alia , 

### to (i) serve Los Angeles , New York , Miami , Philadelphia , and Washington, D . C . on a co -terminal bas is and (ii) provide codesharing service beyond the U.S. to third countries on a blind-sector basis. 5 

### 5 . The codeshare service continues to be consistent with the Open Sk ies Agreement between the U.S . and Canada ,6 

### and the 1996 U .S .-South Africa Air Transport Agreement ("U . S.-S.A. Agreement") . 7 

### 6 . The Department has found that this service is consistent with the public interest. Nothing has occurred since that decision that would in any way contradict that finding. 7. Air Canada agrees to cont i nue to abide by the consumer notification requirements of 14 C . F . R. Part 257 , as well as the other conditions and limitations the Department attached to its Statement of Authorization . 8. Air Canada requests that the Statement of Authorization be renewed for a peri od of at least two years. 9 . This renewal application is timely filed. Air Canada hereby invokes the automatic extension provisions of 5 U . S . C . 

### § 558(c) , as implemented by Part 377 of the Department's procedural regulations.

4 Notice of Act ion Taken, Dockets DOT- OST- 1999-6555 and DOT- OST-2000-6756 (Dec. 4, 2012). 5 Notice of Action Taken in OST-1999-6555 and OST-2000-6756, dated April 26, 2012 . 6 The U . S -Canada Open Skies Agreement states , "any designated a i rline of one Party may enter into cooperative market i ng arrangements such as blocked-space , code-shari ng or leasing arrangements , w ith an a i rl i ne or a i rlines of e ither Party [and] an airl i ne or a i rl ines of a th i rd country

...." Para . 6 , Art . 11 . 7 S i m il arly , the U . S . - S.A. Agreement authorizes any a i rli ne of either country to enter i nto cooperat ive marketing arrangements w ith any a i rline or airl i nes of a th i rd country . Annex , Section 6 . 

### 3Air Canada Application for Renewal WHEREFORE , Air Canada respe ctfully requests that the Department renew Air Canada's Statement of Authorization as descri bed above and to grant it such other and different relief as is consistent with this application and with the public interest.

Anita M. Mesner Jennifer M . Nowak Holland & Knight LLP Attorneys fo r Air Canada

4CERTIFICATE OF SERVICE 

### hereby certify that I have this date served the foregoing document on the persons identified below by causing a copy to be sent by electronic mail. robert . wirick@aa.com howard. kass@aa . com sharon. pasley@fedex. com sllunsford@fedex.com cefelts@fedex .com dan.weiss@united.com sascha.vanderbellen @delta. com jyoung@yklaw.com (Counsel for Spirit Airlines) dkirstein@yklaw.com (Counsel for Spirit Airlines) marshall.sinick@ssd . com (Counsel for Alaska Airlines) agoerlich@ggh-airlaw . com (Counsel for Allegiant and Ryan Internationa l) rpommer@atlasair.com kevin .montgomery@polaraircargo.com anita.mosner@hklaw . com (Counsel for United Parcel Service) jennifer.nowak@hklaw.com (Counsel for Un ited Parcel Service) dsmalls@ups.com matwood@cozen.com (Counsel for Kalitta) john . s.duncan@faa.gov cristinasa@state. gov