Agency Rulings

Decision No. 175-A-2001

April 9, 2001

APPLICATION by Chautauqua Airlines, Inc. carrying on business as USAir Express or US Airways Limited (hereinafter Chautauqua), on behalf of itself and TWA Airlines LLC (hereinafter TWA), for an approval pursuant to section 60 of the Canada Transportation Act, S.C., 1996, c. 10 and section 8.2 of the Air Transportation Regulations, SOR/88-58, as amended, to permit TWA, while providing its scheduled international service between the United States of America and Canada, to sell transportation in its own name on flights operated by Chautauqua between points in the United States of America and points in Canada as of the date of this Decision.

File No. M4835-26-1

Docket No. 010309AG

Chautauqua, on behalf of itself and TWA, has applied to the Canadian Transportation Agency (hereinafter the Agency) for the approval set out in the title. The application was received on April 3, 2001.

Chautauqua has also requested an exemption from the application of subsection 8.2(2) of the Air Transportation Regulations (hereinafter the ATR) which requires the filing of an application for an approval at least 45 days before the first planned flight.

Under Licence No. 975092, Chautauqua is authorized to operate a scheduled international service in accordance with the Air Transport Agreement between the Government of Canada and the Government of the United States of America signed on February 24, 1995 (hereinafter the Agreement).

Under Licence No. 010033, TWA is authorized to operate a scheduled international service in accordance with the Agreement.

With respect to the request for an exemption from the application of subsection 8.2(2) of the ATR, the Agency has considered the request and is of the opinion that compliance by Chautauqua and TWA 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 (hereinafter the CTA), hereby orders that Chautauqua and TWA be exempt from the application of subsection 8.2(2) of the ATR.

The Agency has reviewed and considered the application and the material filed in support thereof and is satisfied that it meets the remaining requirements of section 8.2 of the ATR.

With respect to the proposed duration of the application, the Agency notes that code-sharing between Canadian and American air carriers is specifically permitted in the Agreement, subject to the normal regulatory requirements of the aeronautical authorities. Furthermore, the carriers from the United States of America have unrestricted access to Canada for transborder services. Under such circumstances, the Agency considers that it is appropriate to grant approval for an indefinite period.

Accordingly, the Agency, pursuant to paragraph 60(1)(b) of the CTA and section 8.2 of the ATR, hereby approves the use by TWA of aircraft and flight crew provided by Chautauqua, and the provision by Chautauqua of such aircraft and flight crew to TWA, to permit TWA, while providing its scheduled international service between the United States of America and Canada, to sell transportation in its own name on flights operated by Chautauqua between points in the United States of America and points in Canada, as of the date of this Decision, subject to the following conditions:

1. Chautauqua and TWA shall continue to hold the required licence authorities.
2. Chautauqua and TWA shall apply their published tariffs, on file with the Agency and in effect, to the carriage of their traffic. In particular, 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 approval granted herein is valid only with respect to the use by TWA of aircraft provided by Chautauqua which do not have more than fifty (50) seats.

Chautauqua and TWA are reminded of the continuing requirement to comply with sections 8.2 and 8.5 of the ATR.

The approval granted herein does not exempt Chautauqua and TWA from the requirements of other legislative acts or regulations, including those of Transport Canada.