Decision No. 45-A-2002

January 25, 2002

File No. M4835-26-3

Docket No. 020069AG

Chautauqua on behalf of itself and America West Airlines, Inc. (hereinafter America West) has applied to the Canadian Transportation Agency (hereinafter the Agency) for the approval set out in the title. The application was received on January 18, 2002.

Chautauqua has also requested an exemption from the application of subsection 8.2(2) of the Air Transportation Regulations (hereinafter the ATR), which requires the filing of an application for approval at least 45 days before the first planned flight.

Under Licence No. 975092, Chautauqua is authorized 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 February 24, 1995 (hereinafter the Agreement).

Under Licence No. 975158, America West is authorized to operate a scheduled international service in accordance with the Agreement.

The Agency notes that the code-sharing agreement was implemented prior to obtaining approval as required by subsection 8.2(1) of the ATR.

With respect to this implementation prior to obtaining approval and the request for an exemption from the application of subsection 8.2(2) of the ATR, the Agency has considered the explanation by the applicant that the new arrangement was established as part of the restructuring of America West following the events of September 11, 2001 and inadvertently implemented without obtaining the required approval of the Agency.

The Agency is of the opinion that compliance by Chautauqua with subsections 8.2(1) and 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 (hereinafter the CTA), hereby orders that Chautauqua be exempt from the application of subsections 8.2(1) and 8.2(2) of the ATR.

The Agency has reviewed and considered the application and the material filed in support thereof 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, hereby approves the use by America West of aircraft and flight crew provided by Chautauqua, and the provision by Chautauqua, of such aircraft and flight crew to America West, to permit America West to sell transportation in its own name on flights operated by Chautauqua, between points in the United States of America and points in Canada, subject to the following conditions:

1. Chautauqua and America West shall continue to hold the required licence authorities.
2. Each carrier shall apply its published tariffs in effect to the carriage of its traffic. In particular, nothing in any commercial agreement between the two air carriers relating to limits of liability shall diminish the rights of passengers as stated in such tariffs.

Chautauqua and America West are reminded of the continuing requirement to comply with sections 8.2 and 8.5 of the ATR.

The approval granted herein does not exempt Chautauqua and America West from the requirements of other legislative acts or regulations, including those of Transport Canada.