Decision No. 476-A-2010

November 18, 2010

File No. M4835-32-2

Alaska Airlines, Inc. (Alaska), on behalf of itself, Horizon Air Industries, Inc. carrying on business as Horizon Air (Horizon Air) and Société Air France carrying on business as Air France (Air France), has applied to the Canadian Transportation Agency (Agency) for an approval to permit Air France to provide its scheduled international service between France and Canada by selling transportation in its own name on flights operated by Alaska and Horizon Air between points in the United States of America and points in Canada, for an indefinite period.

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

Air France is licensed to operate a scheduled international service 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 Air France of aircraft and flight crew provided by Alaska and Horizon Air, and the provision by Alaska and Horizon Air of such aircraft and flight crew to Air France, to permit Air France to provide its scheduled international service on licensed routes between France and Canada by selling transportation in its own name on flights operated by Alaska and Horizon Air between points in the United States of America and points in Canada, for an indefinite period from the date of this Decision.

This approval is subject to the following conditions:

1. Air France shall continue to hold the valid licence authority.
2. Air France 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.
3. The air services approved shall only be provided as long as a code-sharing agreement providing for such services remains in effect.
4. Alaska, Horizon Air and Air France 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. Air France shall continue to comply with the public disclosure requirements set out in section 8.5 of the ATR.
6. Air transportation using Air France's code on flights operated by Alaska and Horizon Air 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 between France and Canada.
7. Alaska, Horizon Air and Air France 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.

In Decisions Nos. 56-A-2010 and 392‑A‑2009 Horizon Air and Air France were granted approvals to permit Air France to provide its scheduled international service between France and Canada by selling transportation in its own name on flights operated by Horizon Air between Seattle and Vancouver, and Seattle and Victoria. As a result of the approval granted in this Decision, those Decisions are now redundant.

Accordingly, the Agency, pursuant to section 32 of the CTA, rescinds those Decisions.

This approval does not exempt Alaska, Horizon Air and Air France from the requirements of other legislative acts or regulations, including those of Transport Canada.

Members

• Raymon J. Kaduck
• Jean-Denis Pelletier, P. Eng.