Decision No. 268-A-2010
June 18, 2010
APPLICATION by Alaska Airlines, Inc., on behalf of itself and Air Pacific Limited, for an approval pursuant to section 60 of the Canada Transportation Act, S.C., 1996, c. 10, as amended, and section 8.2 of the Air Transportation Regulations, SOR/88-58, as amended.
File No. M4835-66-1
Alaska Airlines, Inc. (Alaska), on behalf of itself and Air Pacific Limited (Air Pacific), has applied to the Canadian Transportation Agency (Agency) for an approval to permit Air Pacific to provide its scheduled international service between Fiji and Canada by selling transportation in its own name on flights operated by Alaska between points in the United States of America and points in Canada.
As the application was filed less than 45 days before the first planned flight, as required by subsection 8.2(2) of the Air Transportation Regulations (ATR), an exemption from the application of this provision is necessary. 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(l)(c) of the Canada Transportation Act (CTA), exempts Alaska from the application of subsection 8.2(2) of the ATR.
Air Pacific is licensed to operate a scheduled international service in accordance with the Air Transport Agreement between the Government of Canada and the Government of Fiji dated April 30, 1974 (Canada-Fiji Agreement).
The Agency notes that third country carrier code-sharing is not specifically provided for in the Canada-Fiji Agreement. However, specific provision is made in the Air Transport Agreement between the Government of Canada and the Government of the United States of America signed on March 12, 2007 (Canada-United States Agreement), permitting Canadian and American air carriers to code share, including transporting traffic under the code of third country airlines. The Canada-United States Agreement also specifies criteria for the approval of such arrangements, namely that the air carriers involved hold the appropriate authority (licence to serve the points); and meet the regulatory requirements for such arrangements.
Air Canada, the Canadian air carrier designated to serve Fiji, submits that it has no objection to the proposed services on the basis that Fiji agrees to a principle of reciprocity whereby it would authorize third country carrier code-sharing for Canadian carriers serving Fiji. Thus, if the regulatory requirements are met and, in the absence of evidence that Fiji has denied, or will in the future deny a comparable application by a Canadian air carrier, the Agency finds it appropriate to approve the subject application.
Alaska and Air Pacific state that they were unaware that the approval granted by Decision No. 424-A-209 was only granted for a period of 6 months and as a result, an application was not submitted prior to the expiry on April 26, 2010.
The Agency notes this information and the fact that, according to the documentation provided by Alaska and Air Pacific in the submission, there was no lapse in compliance with the insurance requirements of section 8.2 of the ATR. Accordingly, the Agency has determined that no action to penalize Alaska and Air Pacific is necessary at this time. The carriers are reminded of the importance of ensuring that all necessary approvals are sought in sufficient time to avoid an interruption of service. In addition, with respect to the contravention set out above, this approval does not in any way preclude any actions that may be taken against the carriers pursuant to the Canadian Transportation Agency Designated Provisions Regulations.
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.
With respect to the duration of the approval requested, in light of the provisions of the Canada-Fiji Agreement, the Agency considers 6 months to be appropriate.
Accordingly, the Agency, pursuant to paragraph 60(1)(b) of the CTA and section 8.2 of the ATR, approves the use by Air Pacific of aircraft and flight crew provided by Alaska, and the provision by Alaska of such aircraft and flight crew to Air Pacific, to permit Air Pacific to provide its scheduled international services on licensed routes between Fiji and Canada by selling transportation in its own name on flights operated by Alaska between points in the United States of America and points in Canada, for a period of 6 months from the date of this Decision.
This approval is subject to the following conditions:
- Air Pacific shall continue to hold the valid licence authority.
- Air Pacific 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.
- The air service approved shall only be provided as long as a code-sharing agreement providing for such service remains in effect.
- Alaska and Air Pacific 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.
- Air Pacific shall continue to comply with the public disclosure requirements set out in section 8.5 of the ATR.
- Alaska and Air Pacific 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.
- Air transportation using Air Pacific's code on flights operated by Alaska between points in the United States of America and points in Canada shall not be sold separately and shall only be available to traffic carried on a continuous journey under Air Pacific's code between Fiji and Canada. No local traffic may be carried under Air Pacific's code between points in the United States of America and points in Canada.
This approval does not exempt Alaska and Air Pacific from the requirements of other legislative acts or regulations, including those of Transport Canada.
Members
- J. Mark MacKeigan
- Jean-Denis Pelletier, P. Eng.
Member(s)
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