Decision No. 16-A-2010

January 18, 2010

File No. M4835-61-5

Delta Air Lines, Inc. carrying on business as Delta Air Lines, Delta, Delta Shuttle and Song (Delta), on behalf of itself and Société Air France carrying on business as Air France (Air France), has applied to the Canadian Transportation Agency (Agency) for an approval to permit Delta to provide its scheduled international services between the United States of America and France and other countries beyond Canada, by selling transportation in its own name on flights operated by Air France between each of Toronto, Ontario and Montréal, Quebec, Canada and Paris, France and other points beyond and to exercise fifth freedom traffic rights between the two Canadian points and Paris and other points beyond.

Delta has also requested an exemption from the application of subsection 8.2(2) of the Air Transportation Regulations (ATR), which requires the filing of an application for an approval at least 45 days before the first planned flight.

With respect to the request for an exemption from the application of subsection 8.2(2) of the ATR, the Agency has considered the request and is of the opinion that compliance by Delta with subsection 8.2(2) of the ATR is impractical in this case. Accordingly, the Agency, pursuant to paragraph 80(1)(c) of the Canada Transportation Act (CTA), orders that Delta be exempt from the application of subsection 8.2(2) of the ATR.

Delta is licensed to operate a scheduled international service in accordance with the Air Transport Agreement between the Government of Canada and the Government of the United States of America signed on March 12, 2007 (Agreement).

Under the terms of the Agreement, code sharing between designated airlines and third-country carriers is permitted, including the exercise of fifth freedom rights between points in Canada and points beyond.

The Agency has reviewed and considered the application and the material in support and is satisfied that it meets the remaining requirements of section 8.2 of the ATR.

With respect to the duration of the approval requested, the Agency considers a term of three years appropriate.

Accordingly, the Agency, pursuant to paragraph 60(1)(b) of the CTA and section 8.2 of the ATR, approves the use by Delta of aircraft and flight crew provided by Air France, and the provision by Air France of such aircraft and flight crew to Delta, to permit Delta to provide its scheduled international services on licensed routes between the United States of America and France and other points beyond Canada, by selling transportation in its own name on flights operated by Air France between Montréal and Paris and other points beyond and between Toronto and Paris and other points beyond, for three years from the date of this Decision, subject to the following conditions:

1. Delta shall continue to hold the required licence authority.
2. Delta 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 services approved shall only be provided as long as a code-sharing agreement providing for such services remains in effect.
4. The approval granted does not apply to the carriage of cargo.

Delta and Air France are reminded of the continuing requirement to comply with sections 8.2 and 8.5 of the ATR.

Delta and Air France are further reminded to provide the Agency with a copy of any new agreement or amendments to their commercial agreement, including any new or amended annex, without delay.

This approval does not exempt Delta and Air France from the requirements of other legislative acts or regulations, including those of Transport Canada.

Members

• John Scott
• Jean-Denis Pelletier, P. Eng.