Agency Rulings

Decision No. 625-A-2001

November 28, 2001

APPLICATION by Chautauqua Airlines, Inc. carrying on business as US Airways Express, Trans World Express, TW Express and American Connection (hereinafter Chautauqua Airlines), on behalf of itself and American Airlines, Inc. (hereinafter American Airlines), 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 American Airlines, 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 Airlines, Inc. between points in the United States of America and points in Canada.

File No. M4835-26-2

Docket No. 011202AG

Chautauqua Airlines, on behalf of itself and American Airlines has applied to the Canadian Transportation Agency (hereinafter the Agency) for the approval set out in the title. The application was received on November 14, 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 Airlines 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. 975062, American Airlines 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 Airlines 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 Airlines 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.

Accordingly, the Agency, pursuant to paragraph 60(1)(b) of the CTA and section 8.2 of the ATR, hereby approves the use by American Airlines of aircraft and flight crew provided by Chautauqua Airlines, and the provision by Chautauqua Airlines of such aircraft and flight crew to American Airlines, to permit American Airlines, 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 Airlines between points in the United States of America and points in Canada, subject to the following conditions:

1. Chautauqua Airlines and American Airlines shall continue to hold the required licence authorities.
2. Chautauqua Airlines and American Airlines shall each apply their tariffs 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.

Chautauqua Airlines and American Airlines 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 Airlines and American Airlines from the requirements of other legislative acts or regulations, including those of Transport Canada.