Decision No. 124-A-2013

WestJet, on behalf of itself and China Southern Airlines Company Limited carrying on business as China Southern Airlines and China Southern (China Southern), has applied to the Canadian Transportation Agency (Agency) for an approval to permit China Southern to provide its scheduled international service between China and Canada by selling transportation in its own name on flights operated by WestJet between points in Canada as part of a continuous journey between China and Canada, for a period of five years or such longer period as may be authorized by the Agency commencing April 24, 2013.

China Southern is licensed to operate a scheduled international service in accordance with the Agreement between the Government of Canada and the Government of the People’s Republic of China on Air Transport signed on September 9, 2005 (Agreement).

The Agency has considered the application and the material in support and is satisfied that it meets the requirements of section 8.2 of the Air Transportation Regulations (ATR).

With respect to the duration of the approval requested, in light of the provisions of the Agreement, the Agency considers three  years to be appropriate.

Accordingly, the Agency, pursuant to paragraph 60(1)(b) of the Canada Transportation Act (CTA) and section 8.2 of the ATR, approves the use by China Southern of aircraft and flight crew provided by WestJet, and the provision by WestJet of such aircraft and flight crew to China Southern, to permit China Southern to provide its scheduled international service on licensed routes between China and Canada by selling transportation in its own name on flights operated by WestJet between points in Canada, for a period of three years commencing April 24, 2013.

This approval is subject to the following conditions:

1. China Southern shall continue to hold the valid licence authority.
2. China Southern shall apply its published tariffs, in effect, to the carriage of its traffic. Nothing in any commercial agreement between the air carriers relating to limits of liability shall diminish the rights of passengers as stated in such tariffs.
3. The air service approved shall only be provided as long as a code-sharing agreement providing for such service remains in effect.
4. China Southern and WestJet shall continue to comply with the insurance requirements set out in subsections 8.2(4), 8.2(5) and 8.2(6) of the ATR.
5. China Southern shall continue to comply with the public disclosure requirements set out in section 8.5 of the ATR.
6. China Southern and WestJet shall provide the Agency with a copy of any new agreement or amendments to their code-sharing agreement, including any new or amended annex, without delay.
7. Air transportation using China Southern’s code on flights operated by WestJet between points in Canada shall not be sold separately and shall only be available to traffic carried on a continuous journey under China Southern’s code between China and Canada. No local traffic may be carried under China Southern’s code between points in Canada.