Air Canada Public Participation Act (R.S.C., 1985, c. 35 (4th Supp.))

Short Title

Marginal note:Short title

1 This Act may be cited as the Air Canada Public Participation Act.

Interpretation and Application

Marginal note:Definitions

• 2 (1) In this Act,

  Corporation

  Corporation means Air Canada, a corporation continued by the Air Canada Act; (Société)

  Minister

  Minister means the President of the Queen’s Privy Council or such other member of the Queen’s Privy Council for Canada as may be designated by the Governor in Council as the Minister for the purposes of this Act. (ministre)

• Marginal note:Same meaning

  (2) Unless a contrary intention appears, words and expressions used in this Act have the same meaning as in the Canada Business Corporations Act.

• Marginal note:Operation of Canada Business Corporations Act

  (3) In the event of any inconsistency between this Act and the Canada Business Corporations Act, or anything issued, made or established under that Act, this Act prevails to the extent of the inconsistency.

• Marginal note:Operation of Competition Act

  (4) Nothing in, or done under the authority of, this Act affects the operation of the Competition Act in respect of the acquisition of any interest in the Corporation.

Marginal note:Binding on the Crown

3 This Act is binding on Her Majesty in right of Canada or a province.

Transfer of Shares to Minister

Marginal note:Transfer of Air Canada shares

• 4 (1) Notwithstanding subsection 13(3) of the Air Canada Act, the shares of the Corporation held by the Minister of Transport in trust for Her Majesty in right of Canada are hereby transferred to the Minister, who is hereby authorized to acquire the shares.

• Marginal note:Registration and holding of shares

  (2) The shares transferred to the Minister pursuant to subsection (1) shall be registered in the books of the Corporation in the name of the Minister and shall be held by the Minister in trust for Her Majesty in right of Canada.

Continuance

Marginal note:Submission of draft application

• 5 (1) The Corporation shall submit an application for a certificate of continuance of the Corporation under section 187 of the Canada Business Corporations Act to the Minister for approval.

• Marginal note:Submission to Director

  (2) Forthwith after the Minister approves an application submitted pursuant to subsection (1), the Corporation shall submit the approved application to the Director.

• Marginal note:Presumption

  (3) An application submitted to the Director pursuant to this section is, subject to this Act, deemed for all purposes to have been made under subsection 187(1) of the Canada Business Corporations Act.

Marginal note:Mandatory provisions in articles of continuance

• 6 (1) The articles of continuance of the Corporation shall contain

  • (a) [Repealed, 2001, c. 35, s. 1]

  • (b) and (c) [Repealed, 2018, c. 10, s. 90]

  • (d) provisions requiring the Corporation to carry out or cause to be carried out aircraft maintenance activities, including maintenance of any type relating to airframes, engines, components, equipment or parts, in Ontario, Quebec and Manitoba; and

  • (e) provisions specifying that the head office of the Corporation is to be situated in the Montreal Urban Community.

• (2) and (3) [Repealed, 2018, c. 10, s. 90]

• Marginal note:Maintenance activities

  (4) For the purpose of carrying out or causing to be carried out the aircraft maintenance activities referred to in paragraph (1)(d) in Ontario, Quebec and Manitoba, the Corporation may, while not eliminating those activities in any of those provinces, change the type or volume of any or all of those activities in each of those provinces, as well as the level of employment in any or all of those activities.

• (5) [Repealed, 2001, c. 35, s. 1]

• Marginal note:Definition of aircraft

  (6) In this section, aircraft has the same meaning as in subsection 3(1) of the Aeronautics Act.

• (6.1) and (7) [Repealed, 2018, c. 10, s. 90]

Marginal note:Restriction on amendment

7 The Corporation and its shareholders and directors shall not

• (a) apply for continuance of the Corporation in another jurisdiction; or

• (b) make any articles or by-laws that are inconsistent with the provisions included in its articles of continuance pursuant to subsection 6(1).

Share Transactions

Marginal note:Dealing with shares, etc., by Minister

• 8 (1) The Minister is hereby authorized to

  • (a) acquire, hold, dispose of and otherwise deal with shares or debt obligations of, or any security interest in, the Corporation; and

  • (b) enter into any agreement or arrangement necessary or incidental to any activity referred to in paragraph (a).

• Marginal note:Issue and disposal of shares by Corporation

  (2) The Corporation is hereby authorized to issue and sell or otherwise dispose of shares of the Corporation.

General

Marginal note:Name

9 Notwithstanding subsection 10(1) of the Canada Business Corporations Act, the Corporation may continue to use and be legally designated by the name “Air Canada” on and after the day on which it becomes a corporation to which that Act applies.

Marginal note:Official Languages Act

• 10 (1) The Official Languages Act applies to the Corporation.

• Marginal note:Duty re subsidiaries

  (2) Subject to subsection (5), if air services, including incidental services, are provided or made available by a subsidiary of the Corporation, the Corporation has the duty to ensure that any of the subsidiary’s customers can communicate with the subsidiary in respect of those services, and obtain those services from the subsidiary, in either official language in any case where those services, if provided by the Corporation, would be required under Part IV of the Official Languages Act to be provided in either official language.

• Marginal note:Subsidiary body corporate

  (3) For the purposes of this section, a body corporate is a subsidiary of the Corporation if

  • (a) it is controlled by

    • (i) the Corporation,

    • (ii) the Corporation and one or more bodies corporate each of which is controlled by the Corporation, or

    • (iii) two or more bodies corporate each of which is controlled by the Corporation; or

  • (b) it is a subsidiary of a body corporate that is a subsidiary of the Corporation.

• Marginal note:Control

  (4) For the purposes of subsection (3), a body corporate is controlled by another body corporate if

  • (a) securities of the body corporate to which are attached more than 50% of the votes that may be cast to elect directors of the body corporate are held, other than by way of security only, by or for the benefit of the other body corporate; and

  • (b) the votes attached to those securities are sufficient, if exercised, to elect a majority of the directors of the body corporate.

• Marginal note:Application of subsection (2)

  Footnote ^*(5) Subsection (2) applies

  • (a) in respect of air services, including incidental services, provided or made available by a subsidiary of the Corporation at a facility or office in Manitoba, British Columbia, Saskatchewan, Alberta, the Yukon Territory, the Northwest Territories or Nunavut or on a route wholly within those provinces, one year after that subsection comes into force if it had been a subsidiary of the Corporation on that coming into force; and

  • (b) in respect of a person that becomes a subsidiary of the Corporation only after that subsection comes into force, or in respect of Canadian Airlines International Ltd. or Canadian Regional Airlines Ltd. if that airline becomes a subsidiary of the Corporation before that subsection comes into force, three years after the person or airline becomes a subsidiary.

    • Return to footnote ^*[Note: Subsection 10(2) in force July 5, 2000, see SI/2000-59.]

• Marginal note:Extension

  (6) The Governor in Council may, by order made on the recommendation of the Minister of Transport, increase the three years referred to in paragraph (5)(b) to a maximum of four years in respect of a route served, or an office or facility from which service is provided, by a subsidiary.

• Marginal note:Duties of replacements

  (7) If Canadian Airlines International Ltd., Canadian Regional Airlines Ltd. or a subsidiary of the Corporation replaces the Corporation or one of its subsidiaries in providing an air service, including incidental services, that the Corporation or the subsidiary provided on or after December 21, 1999, the Corporation has the duty to ensure that any of the customers of the person who replaces the Corporation or the subsidiary can communicate with that person in respect of those services, and obtain those services from that person, in either official language in any case where those services, if provided by the Corporation or the subsidiary, would be required under Part IV of the Official Languages Act or under subsection (2) to be provided in either official language.

• Marginal note:For greater certainty

  (8) For greater certainty, subsections (2) and (7) do not affect any duty that the Corporation may have under section 25 of the Official Languages Act.

• Marginal note:Deemed duty

  (9) For the purposes of Parts VIII, IX and X of the Official Languages Act, the duties referred to in subsections (2) and (7) are deemed to be duties under Part IV of that Act.

• Marginal note:Definitions

  (10) The definitions in this subsection apply in this section.

  air service

  air service has the same meaning as in subsection 55(1) of the Canada Transportation Act. (service aérien)

  customer

  customer means, in respect of a subsidiary referred to in subsection (2) or (7), a passenger, shipper or consignee using or intending to use an air service, including incidental services, provided or made available by that subsidiary. (client)

  incidental services

  incidental services include, in respect of a subsidiary referred to in subsection (2) or (7),

  • (a) ticketing and reservation services;

  • (b) information, including notices and announcements, that it publishes or causes to be published to inform its customers in respect of its routes or tariffs;

  • (c) services provided or made available to customers at an airport, including the control of passengers embarking and disembarking aircraft, announcements directed at customers and counter services; and

  • (d) services related to baggage or freight claims and client relations. (services connexes)

  route

  route means, in respect of a subsidiary of the Corporation, a route on which the subsidiary provides a two-way air service between the starting and finishing points of that service by a single conveyance, with or without intermediate stops. (trajet)

  shipper

  shipper has the same meaning as in section 6 of the Canada Transportation Act. (expéditeur)