Decision No. 318-A-2015

WestJet, on behalf of itself and Aerovias de Mexico S.A. de C.V. carrying on business as AeroMexico (AeroMexico), has applied to the Canadian Transportation Agency (Agency) for approvals to permit:

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

These approvals are requested for a period of three years or such longer period as may be authorized by the Agency, beginning on October 15, 2015.

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 is licensed to operate a scheduled international service, large aircraft, in accordance with the Agreement between the Government of Canada and the Government of the United Mexican States on Air Transport, signed on February 18, 2014 (Agreement).

AeroMexico is licensed to operate a scheduled international service in accordance with the 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 with flight crew provided by AeroMexico, and the provision by AeroMexico of such aircraft and flight crew to WestJet, to permit WestJet to provide its scheduled international service on licensed routes between Canada and Mexico by selling transportation in its own name on flights operated by AeroMexico between Canada and Mexico, between the United States of America and Mexico, and between points within Mexico; and
2. AeroMexico of aircraft with flight crew provided by WestJet, and the provision by WestJet of such aircraft and flight crew to AeroMexico, to permit AeroMexico to provide its scheduled international service on licensed routes between Mexico and Canada by selling transportation in its own name on flights operated by WestJet between Mexico and Canada, between the United States of America and Canada, and between points within Canada.

These approvals are granted for an indefinite period beginning on October 15, 2015, and are subject to the following conditions:

1. WestJet and AeroMexico shall continue to hold the valid licence authorities.
2. WestJet and AeroMexico 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 and AeroMexico 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 AeroMexico shall continue to comply with the public disclosure requirements set out in section 8.5 of the ATR.
6. WestJet and AeroMexico 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.
7. No local traffic may be carried between points in Mexico under WestJet’s code.
8. No local traffic may be carried between points in Canada under AeroMexico’s code.