Order No. 2004-A-438

October 18, 2004

File No. M4110/J38-1

By Decision No. LET-A-84-2003 dated April 2, 2003, the Canadian Transportation Agency (hereinafter the Agency) advised Japan Airlines Company, Ltd. (hereinafter Japan Airlines) that a review of its computerized reservation system has revealed that Japan Airlines may have been collecting an insurance surcharge that was not set out in its tariff on file and in effect with the Agency. Accordingly, the Agency provided Japan Airlines an opportunity to show cause, by no later than fourteen (14) days from the date of the decision, why the Agency should not find the carrier to be in contravention of subsection 110(4) of the Air Transportation Regulations, SOR/88-58, as amended (hereinafter the ATR); and why the Agency should not, pursuant to section 26 of the Canada Transportation Act, S.C., 1996, c. 10 (hereinafter the CTA), require Japan Airlines to cease and desist from collecting an insurance surcharge that had not been filed in its tariff with the Agency, and direct Japan Airlines to take any other measures the Agency considers appropriate under section 113.1 of the ATR.

On May 2, 2003, in response to Decision No. LET-A-84-2003, Airline Tariff Publishing Company, Agent (hereinafter ATPCo), on behalf of Japan Airlines, amended the carrier's tariff to include an insurance surcharge provision, effective June 16, 2003. For tickets issued on/after May 15, 2003, a surcharge of USD$3.20/approx. CAD$4.70 was added to the applicable fare for travel on any Japan Airlines/Japan Asia Airways international sector. The surcharge was applicable for tickets issued on/before July 31, 2003. On November 03, 2003, ATPCo, on behalf of Japan Airlines, filed a tariff revision with the Agency, extending the insurance surcharge to be applicable for tickets issued on/before December 31, 2003. On January 20, 2004, ATPCo, on behalf of Japan Airlines, filed another tariff revision with the Agency, extending the insurance surcharge to be applicable for tickets issued on/before March 27, 2004 and amending the Canadian dollar amount to CAD$4.20. The Agency has since reviewed the fares charged by Japan Airlines and it appears that, in keeping with the expiry date of March 27, 2004, the insurance surcharge is no longer being collected by the carrier.

Upon careful examination of this matter, the Agency concludes that, from on or about April 2, 2003 to June 16, 2003, Japan Airlines, by applying the above-referred insurance surcharge, did not apply the terms and conditions of carriage specified in its international tariff on file with the Agency, and thereby contravened subsection 110(4) of the ATR.

In light of the action taken by Japan Airlines to amend its tariff to provide for an insurance surcharge, the Agency contemplates no further action in this matter.

With respect to the contravention set out above, the issuance of this Order does not in any way preclude any actions that may be taken against Japan Airlines pursuant to the Canadian Transportation Agency Designated Provisions Regulations, SOR/99-244.