Determination No. A-2018-273

American Airlines, on behalf of itself and Qantas, has applied to the Canadian Transportation Agency (Agency) for approvals to permit:

1. American Airlines to provide its scheduled international service between the United States of America and Australia by selling transportation in its own name on flights operated by Qantas between Canada and Australia ; and
2. Qantas to provide its scheduled international service between Australia and the United States of America by selling transportation in its own name on flights operated by American Airlines between the United States of America and Canada.

These approvals are requested for an indefinite period.

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.

American Airlines is licensed to operate scheduled international services in accordance with 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). Under the terms of the Canada‑United States Agreement, code sharing between designated airlines and third-country carriers is permitted, including the exercise of fifth freedom rights between points in Canada and points beyond.

Qantas is licensed to operate scheduled international services in accordance with the Agreement between the Government of Canada and the Government of Australia relating to Air Services, signed on July 5, 1988.

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:

1. American Airlines of aircraft with flight crew provided by Qantas, and the provision by Qantas of such aircraft and flight crew to American Airlines, to permit American Airlines to provide its scheduled international service on licensed routes between the United States of America and Australia by selling transportation in its own name on flights operated by Qantas between Canada and Australia; and
2. Qantas of aircraft with flight crew provided by American Airlines, and the provision by American Airlines of such aircraft and flight crew to Qantas, to permit Qantas to provide its scheduled international service on licensed routes between Australia and the United States of America by selling transportation in its own name on flights operated by American Airlines between the United States of America and Canada.

These approvals are granted for an indefinite period from the date of this Determination, and are subject to the following conditions:

1. American Airlines and Qantas shall continue to hold the valid licence authorities.
2. American Airlines and Qantas shall apply their published tariffs, in effect, to the carriage of their 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. American Airlines and Qantas 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. American Airlines and Qantas shall continue to comply with the public disclosure requirements set out in section 8.5 of the ATR.
6. 6. American Airlines and Qantas 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.