Agency Rulings

Decision No. 549-A-2001

October 29, 2001

IN THE MATTER OF a complaint filed by Compania Nationala de Transporturi Aeriene Romane "Tarom" S.A. doing business as Tarom S.A. (Romanian Air Transport) against tariffs filed by Ceske Aerolinie A.S. (Czech Airlines).

File No. M4110/C165-6

On January 19, 2001, Compania Nationala de Transporturi Aeriene Romane "Tarom" S.A. doing business as Tarom S.A. (Romanian Air Transport) (hereinafter Tarom) filed with the Canadian Transportation Agency (hereinafter the Agency) a complaint respecting fares applicable to Ceske Aerolinie A.S. (Czech Airlines) (hereinafter Czech Airlines) for transportation between Canada and Romania, which undercut the fares of Tarom.

Pursuant to subsection 29(1) of the Canada Transportation Act, S.C., 1996, c. 10, the Agency is required to make its decision no later than 120 days after the application is received unless the parties agree to an extension. In this case, the parties have agreed to an indefinite extension of the deadline.

On January 19 and February 2, 2001, Tarom expressed the view that the Agreement between the Government of Canada and the Government of the Socialist Republic of Romania on Civil Air Transport (hereinafter the Agreement) does not allow carriers conducting sixth freedom services between Canada and Romania to undercut fares applicable to third/fourth freedom carriers operating between the two countries.

The Agency has carefully reviewed this matter and notes that the Agreement relates to the regulation of services by air carriers designated pursuant to that Agreement. In this case, the carriers involved are Tarom and Air Canada. The provisions of the Agreement do not apply to Czech Airlines.

Accordingly, the Agency hereby dismisses the complaint filed by Tarom.