UNITED STATES OF AMERICA DEPARTMENT OF TRANSPORTATION OFFICE OF THE SECRETARY WASHINGTON, D.C. Issued by the Department of Transportation on December 4 , 20 1 2

NOTICE OF ACTION TAKEN

-- DOCKET DOT

- OST

- 201 2

- 0 1 96

_______________________________________________________________________________________________ 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).

Joint Applicant s : AIR CANADA and SOUTH AFRICAN AIRWAYS (PTY) LIMITED (SAA)

Date Filed: November 15 , 2012.

Relief requested :

( 1) S tatement of authorization under 14 CFR Part 212 for an indefinite period to permit Air Canada to display the “SA” designator code of SAA on 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 and

(2) S tatement of authorization under 14 CFR Part 212 for an indefinite period to permit SAA to display the “AC” designator code of Air Canada on SAA

- operated flights between Johannesburg, South Africa and SAA’s U.S. gateways that connect with Air Canada’s service to Canada. 3

The joint applicants also request a waiver of the 45

- day a dvance filing requirement under 14 CFR Part 212.

Applicant representative s : Anita M. Mosner and Jennifer M. Nowak, 202

- 419

- 2604

DOT analyst: Brett D. Kruger , 202

- 366

- 8025

Responsive pleadings: None.

DISPOSITION

Action: Approved in part (subject to conditions), dismissed in part ; see Remarks below.

Action date: December 4 , 20 1 2

Effective dates of authority granted : The statement of authorization permitting SAA to display the Air Canada code is effective December 4 , 2012, for an indefinite period.

The statement of authorization permitting Air Canada to display the SAA code is effective December 4 , 2012, through December 4

, 201 3

.
Our action granting a waiver of the 45

- day advance filing requirement under 14 CFR Part 212 is eff ective December 4 , 2012

. Basis for approval (bil ateral agreement/reciprocity): The authority granted for the Air Canada code to be displayed on the SAA

operated flights is consistent with the U.S.

- Canada Air Transport Agreement . The authority granted for the SAA code to be displayed on the Air Canada

- operated flights is consistent with the overall state of aviation relations between the United States and South Africa.

Special conditions/Remarks: The 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 the statement of authorization permitting Air Canada to display the SAA code for one

- year, consistent with our usual policy

1 Some flights may be operated by Jazz Aviation (Jazz) LP, displaying the Air Canada code.
2 The joint applicants state that SAA will not carry local traffic between the U.S. and Canada.
3 The joint applicants state that Air Canada will not carry local traf fic on such flights.of granting extrabilateral authority in the circumstances presented. In that regard, we dismissed the application to the ext ent that it sought authority for a longer period.

Except to the extent exe mpted/waived, this authority is subject to the terms, conditions, and limitations of the code

- share conditions attached as Appendix A

. 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 revo ke 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 wi thin 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 document is available on the World Wide Web at: http://www.regulations.govAppendix 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 oper ate the code

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

- share agreement providing for the code

- share operations remains 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 which the service will begin. Such notices should be filed in Docket DOT

- OST

- 20 12

- 0196 ; 4

(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 effect or if the carriers decide to cease operating all or a portion of the approved code

- share services. Such notices sh ould be filed in Docket DOT

- OST

- 201 2

- 0196 ; 5

(d) The code

- sharing operations conducted under this authority must comply with 14 CFR Part 257 and with any amendments to the Department's regulations concerning code

- share arrangements that may be adopted. N otwithstanding any provisions in the contract between the carriers, our approval here is expressly conditioned upon the requirements that the subject foreign air transportation be sold in the name of the carrier holding out such service in computer reserva tion 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.

4 The joint applicants provided notice of their 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 Johannesburg. The applicants further stated tha t SAA will display the “AC” code on flights between Johannesburg and New York, which will connect with Air Canada’s service to Toronto.
5 We expect this notification to be received within 10 days of such non

- effectiveness or of such decision.