Decision No. 3-A-2012

WestJet, on behalf of itself, Delta Air Lines, Inc. carrying on business as Delta Air Lines, Delta and Delta Shuttle (Delta), and Pinnacle Airlines, Inc. carrying on business as Delta Connection (Pinnacle), has applied to the Canadian Transportation Agency (Agency) for approvals to permit:

1. WestJet to provide its scheduled international service between Canada and the United States of America by selling transportation in its own name on flights operated by Delta and Pinnacle between Canada and the United States of America and between points in the United States; and
2. Delta to provide its scheduled international service between the United States of America and Canada by selling transportation in its own name on flights operated by WestJet between the United States of America and Canada and between points in Canada.

These approvals are requested for an indefinite period.

WestJet 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 WestJet from the application of subsection 8.2(2) of the ATR.

WestJet and Delta are licensed to operate scheduled international services 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).

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 approvals requested, in light of the provisions of the Agreement, the Agency considers an indefinite period 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:

1. WestJet of aircraft and flight crew provided by Delta and Pinnacle, and the provision by Delta and Pinnacle of such aircraft and flight crew to WestJet, to permit WestJet to provide its scheduled international service on licensed routes between Canada and the United States of America by selling transportation in its own name on flights operated by Delta and Pinnacle between Canada and the United States of America and between points in the United States of America.
2. Delta of aircraft and flight crew provided by WestJet, and the provision by WestJet 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 by selling transportation in its own name on flights operated by WestJet between the United States of America and Canada and between points in Canada.

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

1. WestJet and Delta shall continue to hold the valid licence authorities.
2. WestJet and Delta 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. WestJet, Delta and Pinnacle 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. WestJet and Delta shall continue to comply with the public disclosure requirements set out in section 8.5 of the ATR.
6. WestJet, Delta and Pinnacle shall provide the Agency with a copy of any new agreement or amendment to their code-sharing agreement, including any new or amended annex, without delay.
7. The carriage of local traffic between points in Canada on Delta’s aircraft or under Delta’s code is prohibited.