Decision No. 7-A-2017

American Airlines, on behalf of itself and Air Pacific, has applied to the Canadian Transportation Agency (Agency) for an approval to permit Air Pacific to provide its scheduled international service between Fiji and Canada by selling transportation in its own name on flights operated by American Airlines between Los Angeles, California, United States of America and Toronto, Ontario, Canada, for an indefinite period beginning on February 1, 2017.

American Airlines has also requested an exemption from the application of subsection 8.2(2) of the 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 CTA, exempts American Airlines from the application of subsection 8.2(2) of the ATR.

Air Pacific is licensed to operate a scheduled international service in accordance with the Air Transport Agreement between the Government of Canada and the Government of Fiji signed on April 30, 1974 (Canada-Fiji Agreement).

The Agency notes that third country carrier code sharing is not specifically provided for in the Canada-Fiji Agreement. However, specific provision is made in the Air Transport Agreement between the Government of Canada and the Government of the United States of America signed on March 12, 2007 (Canada-United States Agreement), permitting Canadian and American carriers to code share, including the carriage of traffic under the codes of third country carriers. The Canada-United States Agreement also specifies criteria for the approval of such arrangements, namely that the carriers involved hold the appropriate authority (license to serve the points) and meet the regulatory requirements for such arrangements.

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 Canada-Fiji 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 Air Pacific of aircraft with flight crew provided by American Airlines, and the provision by American Airlines of such aircraft and flight crew to Air Pacific, to permit Air Pacific to provide its scheduled international service on licensed routes between Fiji and Canada by selling transportation in its own name on flights operated by American Airlines between Los Angeles and Toronto, for a period of three years beginning on February 1, 2017.

This approval is subject to the following conditions:

1. Air Pacific shall continue to hold the valid licence authority.
2. Air Pacific 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. American Airlines and Air Pacific 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 Pacific shall continue to comply with the public disclosure requirements set out in section 8.5 of the ATR.
6. American Airlines and Air Pacific 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 Air Pacific’s code on flights operated by American Airlines between Los Angeles and Toronto shall not be sold separately and shall only be available to traffic carried on a continuous journey under Air Pacific’s code between Fiji and Canada. No local traffic may be carried under Air Pacific’s code between Los Angeles and Toronto.
8. This approval does not apply to the carriage of cargo.