FAQs - Air licencing requirements for resellers
The Agency determined that resellers – companies who purchase seats from an air carrier and resell them to the public – will not be required to hold an air licence, so long as they do not hold themselves out to the public as being an air carrier that is operating an air service. Here is some information that may be helpful to consumers who purchase tickets through resellers.
Q. What is the difference between a reseller and an air carrier?
A reseller is a company that purchases seats on an air carrier and resells those seats to the public. The reseller does not operate any aircraft. The air carrier operates the aircraft. It carries the passengers who have bought tickets through the reseller.
Q. What did the Agency decide about resellers in determination 100-A-2016?
- Resellers do not operate an air service and are not required to hold an air licence, as long as they do not hold themselves out to the public as an air carrier operating an air service.
- NewLeaf, should it proceed with its proposed business model, would not operate an air service and not be required to hold an air licence, provided that they do not present themselves to the public as an air carrier, operating an air service.
Q. How will passengers be protected if they encounter issues such as lost baggage, cancellation or delayed flights if they have purchased through a reseller?
Consumers' air travel will be subject to the terms and conditions of the actual air carrier's tariff applicable to the transportation of passengers and goods.
Tariffs must include terms and conditions related to a number of matters, including the carriage of persons with disabilities, acceptance of children, compensation for denied boarding, failure to operate the service or failure to operate on schedule, limitations of liability for passengers and baggage.
By law, all carriers operating air services to, from or within Canada are required to have a tariff and to make their tariffs available to the public at their business offices upon request. The rights and obligations of air passengers and airlines are set out in these tariffs.
Q. How will the Agency treat consumer complaints against resellers?
The Agency can address complaints from consumers related to an air carrier's tariff when the air traveler has concerns about:
- An air carrier's failure to apply its tariff (i.e, the carrier's fares, rates, charges and terms and conditions);
- The clarity of the terms and conditions of an air carrier's tariff or
- The reasonableness of an air carrier's terms and conditions of carriage as set out in a carrier's tariff.
However, complaints about a resellers fares and the related conditions associated with the fare, such as cancellation penalties or change fees, purchased through a reseller, would fall outside of the Agency's authority and recourse for these matters could be sought through the provinces' or territories' consumer protection agencies, where applicable, or civil courts.
The provinces have the authority to regulate travel intermediaries, including resellers. At the moment, only Quebec, Ontario, and British Columbia, do so. Passengers can also seek refunds from credit card companies for any travel services they have paid for and not received.
Q. Are resellers subject to advertising rules?
This determination does not change the requirements for All-Inclusive Air Price Advertising, which apply to any company who advertises air prices to the public, for travel within, or originating in Canada, through any media. More information can be consulted on the Agency's all-inclusive air price advertising page.
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