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Exchange of Notes between the Government of Canada and the Government of the United States of America constituting an Agreement with respect to the Air Canada Seat Sale and the Participation in the Canada-Australia Market of the U. S. Carrier, Continental Airlines [1983] CATSer 10 (21 March 1983)

E100126 - CTS 1983 No. 8

EXCHANGE OF NOTES BETWEEN THE GOVERNMENT OF CANADA AND THE GOVERNMENT OF THE UNITED STATES OF AMERICA CONSTITUTING AN AGREEMENT WITH RESPECT TO THE AIR CANADA SEAT SALE AND THE PARTICIPATION IN THE CANADA-AUSTRALIA MARKET OF THE U.S. CARRIER, CONTINENTAL AIRLINES

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The Department of State of the United States of America to the Embassy of Canada

WASHINGTON, March 21, 1983

The Department of State refers the Embassy of Canada to the bilateral aviation discussions on air fares held in Washington, D.C. February 28 - March 2, 1983 pursuant to Article XIII(e) of the Air Transport Agreement between the United States and Canada, as amended, and to the agreement in principle reflected by the Exchange of Letters dated March 4, 1983 between the Department and the Embassy. The specific elements of this agreement are as follows:

1. The United States aeronautical authorities shall end their February 24, 1983 suspension of the Canada-United States "seat sale" fares of Air Canada so that sales may resume immediately and passengers may use such fares effective March 4, 1983.

2. The Canadian aeronautical authorities shall allow implementation of matching United States-Canada "seat sale" fares by U.S. airlines, so that sales may resume immediately and passengers may use such fares effective March 4, 1983.

3. Fares in the United States-Australia and United States-Fiji markets now available only to passengers originating in North America outside U.S. territory shall be withdrawn from sale by Continental Airlines, and any "arbitraries" used exclusively in combination with such fares shall also be withdrawn, when requisite approvals are received from Canada and third country aeronautical authorities of Continental Airlines' matching fares described in paragraph 4 below.

4. The Canadian aeronautical authorities shall:

(a) approve all fares filed by Continental Airlines that match the fares offered by Canadian, Australian or Fijian airlines for service between Sydney, Melbourne, and Fiji, on the one hand, and all points in Canada from which CP Air offers such fares, on the other, whether the matching fares are offered on an interline or intraline basis;

(b) permit Continental to offer such fares on a total of four days per week to Sydney, of which two days may be selected at its exclusive discretion and of which two days must be days on which CP Air operates Canada-Sydney service;

(c) permit Continental to match any Canada-Melbourne fare on any two days per week on which Continental enjoys the right to match Canada-Sydney fares; and

(d) permit Continental to match fares from the points in Canada described in subparagraph (a) above to Fiji two days per week selected at Continental's exclusive discretion.

5. The total number of passengers using the matching fares described in paragraph 4 above from Canada, on the one hand, to Australia and Fiji on the other, shall not exceed 160 per week, provided that the annual total number of such passengers shall not exceed 8,000.

6. The United States Government shall carefully monitor the matching fare program described in paragraphs 4 and 5 above to ensure compliance with those paragraphs and shall provide periodic assurances of compliance with those paragraphs to the Canadian Government.

7. Upon request by either the United States or Canada, if any airline files fares to Australia or Fiji, restricted to travellers originating outside its territory, both Parties shall agree to hold prompt consultations.

8. This agreement shall expire twelve months from the effective date of the matching fares described in paragraph 4 above, unless otherwise agreed by the Parties.

9. Subject to the approval of both Governments and to the provisions of paragraph 5 above, any United States airline may match the fares that Continental is permitted to match pursuant to paragraph 4 above.

Confirmation of the foregoing elements will constitute an agreement, which is authentic in English and French, between the United States and Canada, effective March 4, 1983, and which shall enter into force on the date of the Embassy's reply.

Department of State

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The Embassy of Canada to the Department of State of the United States of America

WASHINGTON, March 21, 1983

No.121

The Embassy of Canada presents its compliments to the Department of State and has the honour to refer to the Department's Note of 21 March, 1983 which reads as follows:

"(See American Note of March 21, 1983)"

The Embassy has the honour to confirm that the Department's Note and this reply constitute an Agreement, which is authentic in English and in French, between Canada and the United States, effective 4 March, 1983, and which shall enter into force on the date of this Note, 21 March 1983.

The Embassy of Canada avails itself of this opportunity to renew to the Department of State the assurances of its highest consideration.

The Canadian Embassy