Consultation on request for exemptions from Filing and Publication Requirements for Tolls set out in air carriers' tariffs

Purpose

The Canadian Transportation Agency (CTA) is seeking comments on a request from the International Air Transport Association (IATA) for the CTA to grant an exemption to IATA member air carriers from the requirements to:

• publish (set out) their tolls within their domestic and international tariffs;
• file their tolls set out in their international tariffs with the CTA; and
• publish their tolls set out in their domestic tariffs on their websites.

Legislative and Regulatory Obligations

Every air carrier that sells transportation to, from and within Canada must publish a “tariff”, which is the contract of carriage when transportation is purchased from an air carrier.

The tariff contains all of the terms and conditions that are applicable to the transportation. Included in the tariff are “tolls”, which are the fares, rates or charges set by the carrier for the transportation of passengers or goods, including for any incidental services, and any supporting term or condition which directly affects how a toll is to be applied.

For domestic services, air carriers must publish their tariffs, including their tolls, on their website.

For international services, air carriers are not required to publish their tariffs on their website. However, air carriers must file their tariffs, including their tolls, with the CTA unless the terms of an applicable Air Transportation Agreement (ATA) between Canada and another country precludes the filing of tolls with the CTA.

Air carriers must retain records of every published tariff for a period of up to 3 years after a tariff has ceased to have effect. Anyone can request to review and to obtain a copy or an excerpt of any air carrier tariff.

IATA’s Request

IATA is a trade association for air carriers, representing approximately 340 member air carriers, including four Canadian carriers. On behalf of its member air carriers, it is requesting exemptions from the requirements in the Canada Transportation Act (the Act) and the Air Transportation Regulations (ATR) for air carriers to publish their tolls within their domestic and international tariffs, to file their tolls set out in their international tariffs with the CTA, and to publish their tolls set out in their domestic tariffs on their websites.

IATA contends that:

• the requirements are unnecessary and, in many ways, impractical and undesirable as they impose an unnecessarily onerous administrative burden on air carriers to maintain up-to-date toll information;
• these requirements are no longer reflective of how tolls are distributed and sold in modern air transportation and the ways in which consumers currently access the information in an online and electronic environment; and
• these requirements add complexity and costs to airlines offering, or wishing to offer, services to Canada, further accentuating a cost competitiveness issue for air carriers serving Canada.

See below for IATA’s complete submission to the CTA.

Issues

• 1. Publishing tolls in tariffs

  All air carriers operating domestic air services within Canada and international air services to and from Canada must publish their respective tolls in their tariffs whether or not those tolls are filed with the CTA prior to offering them for sale to the public.

  Publishing tolls within a tariff provides:

  • a public record of the tolls that apply to a service;
  • information about tolls to help resolve any disputes between consumers and air carriers where an air carrier may have failed to apply the tolls set out in its tariff; and,
  • information about tolls so that the reasonableness of those tolls can be assessed by the CTA, including in the adjudication of complaints from the public, except where an applicable ATA provides otherwise.

  IATA argues that the publishing requirements for tolls in a tariff is an administrative burden and serves as an impediment to air carriers implementing real time pricing in the marketplace. IATA is proposing that air carriers could save and retain, for a minimum of 3 years, after the date of purchase, all toll information related to the transportation purchased by a consumer on the consumer’s reservation records, as an alternative to publishing tolls in a tariff.

• 2. Filing the tolls set out in air carriers' international tariffs with the CTA

  Tolls for international services are filed with the CTA in accordance with the provisions of the ATR, unless provided for otherwise by the terms of any applicable ATA.

  The requirement to file tolls was intended to provide the CTA with the opportunity to review the reasonableness of air carrier pricing practices, including to adjudicate complaints from the public. However, most modern ATAs now contain provisions that remove the filing requirement for the tolls set out in international tariffs, such as for air carriers subject to the Canada-USA and Canada-EU agreements. Such ATAs cover the majority of international transportation to and from Canada and only a few markets remain where air carriers continue to be required to file their tolls with the CTA.

  IATA asserts that, for carriers that are still subject to the toll filing requirements, the filing requirement serves as an administrative burden while also impeding these air carriers from being able to offer real-time demand based pricing, including potentially lower prices.

• 3. Publishing the tolls set out in air carriers' domestic tariffs on their websites

  Canadian air carriers offering domestic services are required to publish their tariffs, including their tolls, on their websites for a period of not less than 3 years after the tariffs have ceased to have effect.

  IATA contends this toll publication requirement is unnecessary and undesirable given that consumers are provided a record of the tolls for the transportation they have purchased and this information is saved and stored on consumers' reservation records.

  IATA states that consumers typically rely on pricing information made available in real time from an air carrier’s website or contact center or from their travel agent for pertinent information regarding the transportation they have purchased, and rarely consult tariffs. IATA has proposed that consumer toll information saved by air carriers on reservation records can be made available for a minimum of three years from the date the transportation has been purchased. IATA contends this would serve the needs of consumers and provide an alternative to consumers being provided with access to all of a carrier’s tolls set out in its domestic tariff.

• 4. General

  If the CTA decides to grant any part of IATA's request, it may consider whether to extend the same exemptions, along with any applicable conditions, to all air carriers and not only IATA members.

  Currently, only 4 Canadian carriers are members of IATA while there are approximately 1,500 air carriers that are licensed by the CTA to offer air services to, from and within Canada. Most domestic and international licensees are small air carriers that are not members of IATA - which are mainly large air carriers providing scheduled international air services.