Decision No. 8-A-2012

Alaska Airlines, Inc. (Alaska), on behalf of itself and Air Pacific Limited (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 Alaska between the United States of America and Canada, for a period of one year.

As the application was filed less than 45 days before the first planned flight, as required by subsection 8.2(2) of the Air Transportation Regulations (ATR), an exemption from the application of this provision is necessary. 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(l)(c) of the Canada Transportation Act (CTA), exempts Alaska 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 dated 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 carrying traffic under the code of third country airlines. The Canada-United States Agreement also specifies criteria for the approval of such arrangements, namely that the carriers involved hold the appropriate authority (licence to serve the points); and meet the regulatory requirements for such arrangements.

Air Canada, the Canadian carrier designated to serve Fiji, submits that it has no objection to the proposed service on the basis that Fiji agrees to a principle of reciprocity whereby it would authorize third country carrier code sharing for Canadian carriers serving Fiji.

The Agency has considered the application and the material in support and, in the expectation that favourable consideration will be given by the Fiji aeronautical authorities to similar requests by designated Canadian airlines, finds it appropriate to grant the application.

The Agency is satisfied that the application 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 one year 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 and flight crew provided by Alaska, and the provision by Alaska 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 Alaska between the United States of America and Canada for a period of one year from the date of this Decision.

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. Air Pacific and Alaska 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. Air transportation using Air Pacific’s code on flights operated by Alaska between the United States of America and Canada 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.
7. Air Pacific and Alaska 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.