Decision No. 69-A-2011

March 8, 2011

APPLICATION by Lan Airlines S.A. carrying on business as Lan Airlines, on behalf of itself and Alaska Airlines Inc., 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. M4835-35-2

Lan Airlines S.A. carrying on business as Lan Airlines (Lan Airlines), on behalf of itself and Alaska Airlines Inc. (Alaska Airlines), has applied to the Canadian Transportation Agency (Agency) for an approval to permit Lan Airlines to provide its scheduled international service between Chile and Canada by selling transportation in its own name on flights operated by Alaska Airlines between Los Angeles, California, United States of America and Canada, for an indefinite period.

Lan Airlines 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 Lan Airlines from the application of subsection 8.2(2) of the ATR.

Lan Airlines is licensed to operate a scheduled international service in accordance with the Agreement between the Government of Canada and the Government of the Republic of Chile on Air Transport signed on December 4, 2003 (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 approval requested, in light of the provisions of the Agreement, the Agency considers three years 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 Lan Airlines of aircraft and flight crew provided by Alaska Airlines, and the provision by Alaska Airlines of such aircraft and flight crew to Lan Airlines, to permit Lan Airlines to provide its scheduled international service on licensed routes between Chile and Canada by selling transportation in its own name on flights operated by Alaska Airlines between Los Angeles and Canada, for a period of three years from the date of this Decision.

This approval is subject to the following conditions:

1. Lan Airlines shall continue to hold the valid licence authority.
2. Lan Airlines 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 service approved shall only be provided as long as a code-sharing agreement providing for such service remains in effect.
4. Lan Airlines and Alaska Airlines 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. Lan Airlines shall continue to comply with the public disclosure requirements set out in section 8.5 of the ATR.
6. Lan Airlines and Alaska Airlines 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. Air transportation using Lan Airlines' code on flights operated by Alaska Airlines between Los Angeles and Canada shall not be sold separately and shall only be available to traffic carried on a continuous journey under Lan Airlines' code between Chile and Canada. No local traffic may be carried under Lan Airlines' code between Los Angeles and Canada.

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

Members

• John Scott
• Jean-Denis Pelletier, P. Eng.