UNITED STATES OF AMERICA DEPARTMENT OF TRANSPORTATION OFFICE OF THE SECRETARY WASHINGTON, D.C. Issued by the Department of Transportation on January 2 , 2014

NOTICE OF ACTION TAKEN

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_______________________________________________________________________________________________ This serves as notice to the public of the action described below, taken by the Department official indicated (no additional confirming order will be issued in this matter).
Applicant : AIR CANADA Date Filed: October 4, 2013

Relief requested : Renewal of s tatement of authorization under 14 CFR Part 212 to permit Air Canada to display the “SA” designator code of South African Airways (SAA) on certain flights operated by Air Canada 1 between points in Canada and SAA’s U.S. gateways that connect with SAA’s service to South Africa

. 2 Air Canada requests that the s tatement of a uthorization be renewed for a period of at least two years.

If renewal, date an d citation of last action: December 4, 2012, in this Docket.
Applicant representative s : Anita M. Mosner and Jennifer M. Nowak, 202

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DOT analyst: David R. Christofano , 202

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Responsive pleadings: None. DISPOSITION

Action: Approved in part ( one

- year grant ), remainder (request for longer

-term authority) dismissed. (See r emarks below )

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Action date: January 2 , 2014

Effective dates of authority granted : The statement of authorization permitting Air Canada to display the SAA code is effective January 2 , 2014 , through January 2 , 2015

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Basis for approval (bil ateral agreement/reciprocity): U.S.

- Canada Air Transport Agreement. In addition, t he authority gr anted for the SAA code to be displayed on A ir Canada

- operated flights is consistent with the overall state of aviation relations between the United States and South Africa.
Special conditions/Remarks: As noted in our action granting Air Canada’s initial request for this authority, t he third

- country code

- share authority for the display of the SAA code on Air Canada flights beyond the United States requested here is not explicitly provided for under the U.S.

- South Africa Air Transport Agreement. Therefore

, we will grant renewal of the statement of authorization permitting Air Canada to display the SAA code for one

- year, consistent with our initial action and our usual policy of granting extrabilateral authority in the circumstances presented. Therefore , w e dismissed the application to the extent that it sought authority for a longer period.
Except to the extent exempted/waived, this authority is subject to the terms, conditions, and limitations of the code

- share conditions attached as Appendix A

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Action taken by: Paul L. Gretch, Director, Office of International Aviation

________________________________________________________________________________ _______ __________ To the extent not granted/deferred/dismissed, we denied all requests in the referenced Docket. We may amend, modify, or revoke the authority granted in this Notice at any time without hearing at our discretion. Persons entitled to petition the Department for review of the action set forth in this Notice under the Department’s regulations, 14 CFR §385.30, may file their petitions within seven (7) days after the date of issuance of this Notice. This action was effective when taken, and the filing of a petition for review will not alter such effectiveness.

An electronic version of this docu ment is available on the World Wide Web at: http://www.regulations.gov

1 Some flights may be operated by Jazz Aviation (Jazz) LP, displaying the Air Canada code.
2 Air Canada state s that SAA will not carry local traffic between the U.S. and Canada.Appendix A

The code

- share operations authorized here are subject to the following conditions:

(a) The statement s of authorization will remain in effect only as long as (i) Air Canada and SAA continue to hold the necessary underlying authority to operate the code

- share services at issue, and (ii) the code

- share agreement providing for the code

- share operations remain s in effect;

( b ) Air Canada and/or SAA must notify the Department no later than 30 days before they begin any new code

- share service under the code

- share services authorized here. Such notice shall identify the market(s) to be served and the date on wh ich the service will begin. Such notices should be filed in Docket DOT

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(c) Air Canada and/or SAA must notify the Department immediately if the code

- share agreement under which these code

- share services are operated is no longer in effec t or if the carriers decide to cease operating all or a portion of the approved code

- share services. Such notices should be filed in Docket DOT

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(d) The code

- sharing operations conducted under this authority must comply with 14 CFR Part 2 57 and with any amendments to the Department's regulations concerning code

- share arrangements that may be adopted. Notwithstanding any provisions in the contract between the carriers, our approval here is expressly conditioned upon the requirements that t he subject foreign air transportation be sold in the name of the carrier holding out such service in computer reservation systems and elsewhere; that the carrier selling such transportation (i.e., the carrier shown on the ticket ) accept responsibility for the entirety of the code share journey for all obligations established in its contract of carriage with the passenger ; and that the passenger liability of the operating carrier be unaffected;

(e) The authority granted here is specifically conditioned so that neither Air Canada nor SAA shall give any force or effect to any contractual provisions between themselves that are contrary to these conditions ; and

( f

) We may amend, modify, or revoke the authority granted at any time without hearing at our discretion.

3 Air Canada previously provided notice of its intent to display the “SA” code on Air Canada flights between Toronto and New York, which will connect with SAA’s service from New York to Jo hannesburg.
4 We expect this notification to be received within 10 days of such non

- effectiveness or of such decision.