Air Canada Law Branch International and Regulatory Affairs LAW DEPARTMENT AFFAIRES JURIDIQUES Air Canada Law Branch International and Regulatory Affairs An overview Presented to: IASL, McGill University By: Martine De Serres Counsel, Regulatory and International March 16, 2009

Law Branch – Internal Structure Commercial (5 lawyers) Aircraft Financing (3 lawyers) Labour & Employment (4 lawyers) Privacy & Human Rights (1 lawyer + 1 paralegal) Litigation (2 lawyers + 2 paralegals) Regulatory and International (2 lawyers) + VP & General Counsel 12/26/2018

Law Branch Tasks – International & Regulatory General Guidance Legal advice on applicable legislation in the countries we serve Obtain and understand applicable legislation Coordinate with external counsel, if needed Ensure compliance by working with various client groups Legal advice on acceptable practices based on: International conventions IATA regulations Canadian law Prior advice from external counsel In-house seminars Competition Law worldwide: key principles, Dos and Don’ts Misleading Advertising: Dos and Don’ts Environmental Due Diligence: Canadian legal regime 12/26/2018

Law Branch – International & Regulatory – Tasks Licencing Requirements and Authorities Canadian and Foreign authority licencing requirements, seasonal renewals and/or notifications Application and schedule of operations Insurance Various documents (AOC; CofR; CofA; Incorporation; Manuals; …) Required for: Own scheduled operations Charter operations Wet lease operations Code share operations Extra sections Subject to various conditions and requirements 12/26/2018

Law Branch – International & Regulatory – Tasks Contractual Support Draft, negotiate, review, and give advice on contracts: Slot Exchange/Loan/Lease Agreements Code share agreements Wet lease agreements Capacity purchase agreements Joint ventures Ground Handling Agreements Tariffs 12/26/2018

Recent developments – Passenger Rights EU regulation (delays and cancellation) + all-inclusive pricing US Denied Boarding revised rule Australia – new all-inclusive pricing Brazil – call centers and 12 point-font legislation Canada – Flight Rights Canada & the new private bill Passengers with a disability… next slide 12/26/2018

Recent developments - Accessibility US Part 382 now applies to foreign carriers EU legislation On-going Canadian case law 1P1F Oxygen decision Service animals 12/26/2018

Canadian Transportation Agency’s Jurisdiction Air Marine Rail Accessible transportation No undue obstacle to mobility Acceptance of determination of self-reliance Equivalent to human rights legislation 12/26/2018

Deregulation in Canada Domestic travel deregulated Exceptions: 120 days prior notice for discontinuance / reduced service Unreasonable fares if only carrier on domestic route (review upon complaint) Unreasonable terms and conditions (review upon complaint) International & Transborder travel still regulated– review on own-motion 12/26/2018

Is the aviation industry deregulated? Is power to review upon complaint real deregulation? International travel still “regulated” in Canada Regulation of fares and fees mostly deregulated world-wide Countries have differing scales of regulations Increased passenger rights regulations world-wide => A new trend for regulation? 12/26/2018

Inherent International Regulatory Conflicts Regulating code share relationships: Operating carrier rule vs. marketing carrier rule Competition law: managing cultural and legislative differences Consumer protection: increasing in number, variety and scope Lack of uniformity - Apply the highest standard 12/26/2018

Questions? Thank you! 12/26/2018