Decision No. 243-A-2013

Delta Air Lines, Inc. carrying on business as Delta Air Lines, Delta and Delta Shuttle (Delta), on behalf of itself, Pinnacle Airlines, Inc. carrying on business as Delta Connection (Pinnacle), Chautauqua Airlines, Inc. carrying on business as US Airways Express, American Connection, Delta Connection and Continental Express (Chautauqua), and Virgin Atlantic Airways Limited (Virgin Atlantic), has applied to the Canadian Transportation Agency (Agency) for approvals to permit:

1. Delta to provide its scheduled international service between the United States of America and Canada, and beyond points in Canada to points in the United Kingdom, by selling transportation in its own name on flights operated by Virgin Atlantic between points in Canada and the United Kingdom; and
2. Virgin Atlantic to provide its scheduled international services between member states of the European Community and Canada, and beyond points in Canada to points in the United States of America, by selling transportation in its own name on flights operated by Delta, Pinnacle and Chautauqua between points in Canada and the United States of America.

These approvals are requested for an indefinite period.

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. The Agency finds that compliance 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), exempts Delta 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.

Virgin Atlantic is licensed to operate scheduled international services in accordance with the Agreement on Air Transport between Canada and the European Community and its Member States, signed on December 18, 2009.

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

Accordingly, the Agency, pursuant to paragraph 60(1)(b) of the CTA and section 8.2 of the ATR, approves the use by:

1. Delta of aircraft and flight crew provided by Virgin Atlantic, and the provision by Virgin Atlantic of such aircraft and flight crew to Delta, to permit Delta to provide its scheduled international service on licensed routes between the United States of America and Canada, and beyond points in Canada to points in the United Kingdom, by selling transportation in its own name on flights operated by Virgin Atlantic between points in Canada and the United Kingdom; and
2. Virgin Atlantic of aircraft and flight crew provided by Delta, Pinnacle and Chautauqua, and the provision by Delta, Pinnacle and Chautauqua of such aircraft and flight crew to Virgin Atlantic, to permit Virgin Atlantic to provide its scheduled international services on licensed routes between member states of the European Community and Canada, and beyond points in Canada to points in the United States of America, by selling transportation in its own name on flights operated by Delta, Pinnacle and Chautauqua between points in Canada and the United States of America.

These approvals are granted for an indefinite period from the date of this Decision, and are subject to the following conditions:

1. Delta and Virgin Atlantic shall continue to hold the valid licence authorities.
2. Delta and Virgin Atlantic shall apply their published tariffs, in effect, to the carriage of their 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. Delta, Pinnacle, Chautauqua and Virgin Atlantic 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. Delta and Virgin Atlantic shall continue to comply with the public disclosure requirements set out in section 8.5 of the ATR.
6. Delta, Pinnacle, Chautauqua and Virgin Atlantic 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.