Interline Baggage Rules for Canada: Interpretation Note

Effective for tickets issued on or after April 1, 2015.

Disclaimer

The Canadian Transportation Agency (Agency) is the economic regulator of Canada’s federal transportation network. It publishes Interpretation Notes to provide information and guidance on provisions of the Canada Transportation Act (CTA) and associated regulations that it administers. Should there be any discrepancy between the content of this Interpretation Note and the Act and associated regulations, the latter prevail.

This Interpretation Note provides guidance to air carriers and their agents relating to interline baggage rules application. Unless the context otherwise dictates, the term "carrier" is meant to encompass licensees and non-licensees involved in interline itineraries issued on a single ticket whose origin or ultimate ticketed destination is a point in Canada.

Please note that the implementation date for the Agency's Interline Baggage Rules for Canada has been extended to April 1, 2015.

Purpose

On April 15, 2014, the Canadian Transportation Agency (Agency) issued Decision No. 144-A-2014 which specifies the rules that air carriers should be applying, effective for tickets issued on or after April 1, 2015, when participating in an interline itinerary issued on a single ticket whose origin or ultimate destination is a point in Canada. These rules call for:

• a single set of baggage rules being applied to the entire itinerary; and,
• the disclosure of these baggage rules to the passenger.

Furthermore, air carriers must file their policies with respect to interline baggage in their tariffs.

The Agency’s Decision is consistent with the United States Department of Transportation’s (U.S. DOT) baggage rules requirements, thereby providing for a harmonized North American approach to how baggage rules should be applied.

To support its Decision, the Agency issued this Interpretation Note (IN) - Interline Baggage Rules for Canada to clarify to air carriers and ticket sellers, and inform the travelling public how baggage rules should be applied (for both checked and unchecked baggage).

More specifically, this IN lays out an approach for interline and code-share baggage rules that, if accurately reflected in carriers’ tariffs and applied by carriers and ticket sellers, the Agency finds to be clear, just and reasonable, and which does not impose upon passengers an undue prejudice or disadvantage consistent with the requirements of the Air Transportation Regulations (ATR).

This IN also addresses how air carriers and ticket sellers should disclose the applicable baggage rules to passengers by air carriers and ticket sellers. The aim is to ensure that the policies of carriers are clearly stated and are readily available to passengers so that they are made aware of the baggage rules that apply to their itinerary.

1. Context

Baggage rules^{Footnote 1} establish an air carrier’s policies pertaining to the transportation of a passenger’s bags, including, but not limited to the following:

• The maximum weight and dimensions of passenger bags, if applicable, both checked and unchecked;
• The number of checked and unchecked passenger bags that can be transported and the applicable charges;
• Excess and oversized baggage charges;
• Charges related to check in, collection and delivery of checked baggage;
• Acceptance and charges related to special items, e.g. surf boards, pets, bicycles, etc;
• Baggage provisions related to prohibited items, including embargoes;
• Terms or conditions that would alter or impact the baggage allowances and charges applicable to passengers (e.g. frequent flyer status, early check-in, pre-purchasing baggage allowances with a particular credit card);and,
• Other rules governing treatment of baggage at stopover points, including passengers subject to special baggage allowances or charges, etc.

For several decades, carriers’ baggage allowances were either assessed on a piece or weight basis. Travel to, from or within North America was based on the piece system (i.e., two pieces of luggage, free of charge, per passenger). Travel between other parts of the world was governed by a system based on weight. Such policies were highly harmonized among carriers and from a passenger’s perspective, unless complex itineraries were involved, they seldom resulted in incompatibility of baggage rules for passengers travelling on multiple air carriers or via different countries.

However, over time, this simplified, standard approach evolved due to new industry practices, including à la carte pricing, carrier desire to maximize revenue from baggage, and regulatory change. Carriers abandoned the simplified standard approach and began to apply their own rules to their own flight segments for trips involving multiple air carriers. This resulted in confusion as to which carrier’s rules were applicable because passengers were subjected to differing and unexpected baggage allowances and charges while en-route on an interline itinerary.

To address this situation, different methodologies to determine the applicable baggage rules when travelling on multiple air carrier itineraries have emerged. The following section briefly describes two key approaches currently used by industry.

1.1 IATA baggage rules

The International Air Transport Association (IATA), the trade association for the world's air carriers representing some 240 carriers, has defined basic worldwide baggage standards including how carriers could apply baggage rules to a passenger’s interline itinerary.

Recognizing the industry requirement for a more flexible approach to baggage allowances and fees application, on April 1, 2011, IATA Rule (IATA Resolution 302, Appendix 7.1) came into force providing a new methodology to determine which carrier’s baggage rules would apply to an interline itinerary, including code-sharing arrangements. This new methodology created the Most Significant Carrier (MSC) concept.

IATA’s approach uses a geographical-based selection process to determine which carrier(s) would be the MSC (see Appendix 7.1 for further details how an MSC is chosen).

Baggage rules of the MSC are applicable from the point of "baggage check-in" until the next stopover, or the next point of baggage collection. Each time baggage is re-checked by the passenger, the MSC is once again defined and its baggage rules are applied. The baggage rules of the new MSC may be the same or different than the previous MSC. There is potential for several different MSCs to be included in a passenger’s interline itinerary if it involves multiple flights and stops.

As a result, passengers may encounter different and changing baggage rules throughout their itinerary. The more complex the itinerary, the more likely this will occur. This concern is exacerbated by the fact that IATA has not set rules regarding the disclosure of the applicable rules to the passengers, leaving passengers potentially exposed to differing and unexpected baggage rules in the course of a given itinerary.

1.2 U.S. DOT baggage rules

In January 2012, the U.S. DOT Rule 399.87 came into effect (Appendix 7.3). Under this Rule, all carriers selling transportation to passengers where the "ultimate ticketed origin or destination" is a point in the United States must apply the same baggage policy and fees throughout a passenger’s itinerary, regardless of stopovers, when it is on the same ticket.

The U.S. DOT requirements stipulate that it is the first marketing carrier on the first flight segment of an interline itinerary that has the right to establish the baggage rules to apply for the entire interline itinerary. One set of baggage rules applies irrespective of stopovers or other carrier flights listed on the single ticket. More specifically, the first marketing carrier has the right to choose to apply its baggage rules or the rules of the MSC(as determined by the application of IATA Resolution 302, modified to be applicable in the U.S. context).

All carriers must reflect their baggage rules in their tariffs filed with the U.S. DOT.

1.3 Agency’s practices

Prior to implementing its Interline Baggage Rules for Canada, the Agency had not issued an all-encompassing approach. Baggage rules for air travel to or from Canada were established by individual carriers by stipulating their baggage rules in their tariffs for application to their own traffic, even when part of an itinerary involved multiple air carriers. This approach was sufficient under the circumstances as essentially all carriers had similar tariff provisions which reflected a generous free baggage allowance based on the piece system that had existed at that time.

The Agency did however express a clear view with respect to baggage rules in code-sharing arrangements, whereby one air carrier (the marketing carrier) sells transportation in its name (and under its own two letter designator code) on flights operated by the partner air carrier (operating carrier). The Agency has always required the marketing carrier to apply its tariff (encompassing its baggage rules) to its own traffic in a code-sharing arrangement. Upon complaint, the Agency enforces the baggage rules of the marketing carrier in the code-sharing arrangement as reflected in its tariff.

Considering the emergence of both the IATA and U.S. DOT approaches to baggage rule application, to inform its considerations, the Agency sought views on the best approach to interline baggage rules for Canada via an industry workshop and an on-line public consultation. The consultations revealed significant consensus that the Agency should not develop a new approach but rather align with either IATA’s Resolution 302 or the U.S. DOT’s new regulations. In addition, a large majority expressed support for a harmonized North American approach (i.e., an approach consistent with U.S. DOT Rule 399.87).

2. Agency’s authority

As the Canadian economic regulator of the air transport industry, pursuant to the ATR, the Agency is responsible for determining whether the international tariffs of air carriers are clear [ATR paragraph 122(a)], just and reasonable [ATR subsection 111(1)], and whether traffic has been subject to undue or unreasonable disadvantage or prejudice [ATR paragraph 111(2)(c)]. Furthermore, the Agency can on complaint or on its own motion cancel, suspend or substitute an international tariff or portion of an international tariff. The Agency can also direct an air carrier offering an international service to take corrective measures and pay compensation to the passenger if the air carrier fails to apply its tariff.

3. Principles of Agency’s interline baggage rules for Canada

Based on the results of its consultations, the Agency’s approach to interline baggage rules is guided by two fundamental principles:

a) A seamless and transparent baggage regime for passengers

• Passengers should have a seamless travel experience throughout their interline itinerary issued on a single ticket.
• Passengers should be informed of which carrier’s baggage rules apply to their interline itinerary.

b) A harmonized and practical regime for industry

• The Canadian approach should avoid imposing unique requirements that conflict with other jurisdictions and particularly within the North American context.
• The Canadian approach should take into account the operational challenges faced by industry and not impose unnecessary burdens.

4. Agency’s approach to interline baggage rules for Canada

4.1 Scope of the approach – affected traffic

4.1.1 International interline itineraries

Air carriers should, for interline transportation where the origin or ultimate ticketed destination is a point in Canada and where such transportation has been issued on a single ticket, apply a single set of baggage rules throughout a passenger’s interline itinerary, regardless of stopovers. This includes domestic legs of an international itinerary, when transportation has been issued on a single ticket.

More specifically, the carrier whose designator code is identified on the first flight segment of the passenger’s interline ticket^{Footnote 2} (i.e., the selecting carrier) can select to apply for the entire interline itinerary by all participating carriers, either:

• the selecting carrier’s own baggage rules; or,
• the rules of the "Most Significant Carrier" (MSC), pursuant to the methodology of IATA Resolution 302, as conditioned by the Agency.

To enable the implementation of this approach, carriers are encouraged to use any automated baggage rules systems (e.g. databases, global distribution systems(GDS), Web pages, etc.) that enable them to publish their free baggage provisions, excess and special items, embargoes, and carry-on allowance and fees in all sales and distribution channels.

On April 16 2014, the Agency placed a Reservation against IATA Resolution 302 (see Appendix 7.2.1). The aim of this Reservation is to allow the selecting carrier to use the MSC methodology to determine which carrier’s baggage rules apply to an international interline itinerary to or from Canada, while reinforcing the role of tariffs. This Reservation is also fully consistent with the Reservation filed by the U.S. DOT and thus promotes a harmonized North American approach. Appendix 7.2.1 provides further details on how IATA Resolution 302, as modified by the Agency, applies.

Resolution 302 is not binding on IATA or non-IATA carriers and has no legal standing in Canada. If carriers otherwise agree to amend or establish another approach to determine the applicable baggage rules as an alternative to Resolution 302, such an approach must also comply with the ATR and be expressed in tariffs filed with the Agency at least 45 days before they come into effect. An alternative approach should also respect the two fundamental principles of the Agency’s approach.

4.1.2 Domestic interline itineraries

The Agency recognizes that the domestic marketplace may not generally utilize an automated baggage rules system (e.g. databases, GDS, Web pages, etc.) which would enable the Agency approach to be implemented in a manner similar to international transportation. Furthermore, the IATA’s MSC concept is inapplicable to the domestic context.

Nevertheless, for interline transportation occurring wholly within Canada (not part of a multi-segment (or leg) international itinerary) and where such transportation has been issued on a single ticket, the Agency also expects air carriers to apply a single set of baggage rules throughout a passenger’s interline itinerary, regardless of stopovers. The Agency is of the opinion that applying this approach to domestic interline itineraries would be beneficial to consumers.

Furthermore, the Agency expects the domestic carrier whose designator code is identified on the first flight segment of the passenger’s interline ticket (i.e., the selecting carrier) to select and apply its own baggage rules to the entire interline itinerary. All downline carriers are expected to also apply those rules to their respective services.

Domestic carriers contemplating applying the Agency approach to domestic interline travel are encouraged to develop and use automated baggage rules systems.

4.1.3 Applicable to both domestic and international interline itineraries

Once the baggage rules have been chosen by the selecting carrier for either an international or domestic interline itinerary, carriers should:

• apply the rules to the passenger’s entire interline itinerary issued on a single ticket; and,
• disclose the rules to the passenger on any summary page at the end of an online purchase and on e-tickets.

4.2 Applicable baggage rules

The Agency’s Interline Baggage Rules for Canada apply to a carrier’s baggage rules related to checked and unchecked (carry-on) items.

4.3 Tariffs

Canada’s regulatory regime requires that carriers have tariffs and that those tariffs reflect their policies. Tariffs establish the contractual rights and responsibilities of passengers and the carrier. Consistent with the requirements of the ATR (subsections 110(1), (4) and (5), any carrier offering international transportation to or from Canada, including those carriers who are participating in interline travel (whether they hold a license to operate to and from Canada or not), must have a tariff and apply it. Furthermore, that tariff must clearly state the carrier’s policy in respect of specific matters [per ATR paragraph 122.(c)], including baggage. Carriers must file their tariffs with the Agency that set out their baggage rules at least 45 days in advance.

To align with the Agency’s approach, carriers involved in interline arrangements must reflect in their tariffs how they will:

• select the baggage rules applicable to an interline itinerary;
• apply the baggage rules selected by another carrier participating in an interline itinerary; and,
• disclose the applicable baggage rules to a passenger on any summary page at the end of an online purchase and on e-tickets. (refer to Part 3 of this IN).

The tariffs of carriers involved in interline arrangements (either as a selecting or down line carrier) should address the following four areas:

i. Carrier’s own baggage rules

• Establish the carrier’s own baggage rules with respect to such matters as free baggage allowances, limits on weight, size, number of bags allowed, conditions associated with the treatment of special items (e.g., pets, bicycles, skis, surf boards, embargoes), how baggage rules are applied at stopover points and any charges associated with the carriage of baggage;
• all carriers will already have their own baggage rule in their tariff currently filed with the Agency, however each carrier will need to assess the adequacy of their own baggage provisions in the context of this IN and its interline services; and,

ii. Baggage rule determination by selecting carrier

• Include a statement that the selecting carrier will choose either to:

1. the selecting carrier’s own baggage rules; or,
2. the rules of the "Most Significant Carrier" (MSC), pursuant to the methodology of IATA Resolution 302, as conditioned by the Agency; and,

iii. Participation as a down line carrier in an interline itinerary

• Have a statement that the carrier will apply, as its own, the rules chosen by the selecting carrier when it is a down line carrier and a passenger is travelling on one of its flights as part of an interline itinerary; and,

iv. Disclosure

• Provide for the carrier’s disclosure undertakings consistent with the Agency’s approach (refer to Part 3 of this IN).

Carriers may refer to the Agency’s Sample Tariff^{Footnote 3} developed by Agency staff for assistance in establishing their interline baggage rules tariff information reflecting the Agency’s approach. Carriers should ensure that they allow for the appropriate amount of time to file their revised tariff provisions with the Agency. The approach applies to tickets issued on or after April 1, 2015.

4.3.1 Tariffs must be on file with the Agency

4.3.1.1 International itineraries

For all other international itineraries, including domestic segments of an international itinerary, only carriers with baggage rules reflected in tariffs on file and in effect with the Agency, pursuant to ATR subsection 110(1), may act as the selecting carrier. The selecting carrier may choose to apply either their own baggage rules or determine who will be the MSC for the itinerary. Any chosen MSC carrier must also have its baggage rules reflected in tariffs on file and in effect with the Agency in order for them to apply to an interline itinerary.

Note: For transborder itineraries only, a tariff must be on file with both the Agency and the U.S. DOT in order for the appropriate baggage rules to apply to an itinerary and to meet both countries’ regulatory requirements.

4.3.1.2 Domestic itineraries

For interline itineraries of Canadian domestic carriers involving travel taking place wholly within Canada, the domestic carrier whose designator code is identified on the first flight segment of the passenger’s interline ticket (i.e., the selecting carrier) is expected to select and apply its own baggage rules to the entire interline itinerary in so far as the baggage rules are set out in its domestic tariff. All downline carriers are expected to also apply those rules to their respective services.

This ensures that the Agency can review the reasonability of these rules pursuant to subsection 67.2(1) of the CTA and that these rules are effective pursuant to subsection 67(3) of the CTA.

4.3.2 Carriers that do not file tariffs with the Agency

If a passenger’s international interline itinerary begins at a foreign point (other than the U.S.) and the carrier whose designator code is identified on the first flight segment of the passenger’s ticket at the beginning of the itinerary does not file tariffs with the Agency, that carrier must not be the selecting carrier on the interline itinerary. Furthermore, all other carriers must not apply that non-tariff filing carrier’s baggage rules. The Agency has a list of carriers who file tariffs applicable for transportation to and from Canada.

Allowing a foreign carrier’s baggage rules which are not filed with the Agency to be the rules applicable to an interline itinerary to or from Canada would result in the Agency not being able to deal with the reasonability of such rules. The Agency finds this unacceptable.

In these cases, the next carrier whose designator code appears on the passenger’s international interline itinerary and who files a tariff with the Agency would be the carrier to determine which carrier’s baggage rules will apply and thereby establishing the applicable baggage allowances and fees. All participating carriers should apply that alternative carrier’s selection of baggage rules. This carrier, through its ongoing relationship and interline agreements, would be responsible for advising this first carrier (non-filing) of the established baggage rules for that passenger.

Carriers that do not file tariffs with the Agency but are participating in interline itineraries applicable to transportation to or from Canada and "feeding" passengers onto flights operated by a larger carrier, should ensure that they have the relevant baggage information and disclose which baggage rules apply to the itinerary.

4.4 Special issues affecting baggage rules

4.4.1 Unchecked (carry-on) baggage

The Agency recognizes that each operating carrier that is participating in an interline itinerary will for practical reasons apply their own unchecked carry-on baggage allowances to their respective flight segments. The Agency recognizes that due to the variety of aircraft sizes and types that may be used throughout an interline itinerary applying a single set of baggage allowances for carry-on baggage would not be practical. In particular, in the United States, each state has differing requirements and specifications regarding carry-on baggage that are applied to departing aircraft.

Nevertheless, it is possible for carriers to apply consistent charges for carry-on baggage, even if they cannot apply consistent baggage allowances. For example, once a carrier’s baggage rules has been selected to apply to the passenger’s entire itinerary, that carrier’s baggage charges should not differ from flight to flight. Further, the passenger should not be charged an additional sum if the passenger’s carry-on baggage cannot be accommodated in-cabin (due to weight, size, etc.) and it must be checked instead.

By providing carriers with this flexibility, this approach aligns with the U.S. DOT’s approach.

Notwithstanding the foregoing, a carrier should disclose to passengers the carry-on baggage rules applicable to their interline itinerary.

4.4.2 Passenger special status

Some passengers may be eligible for an enhanced baggage allowance or for reduced fees based on the passenger’s status or other factors. For example, a passenger’s status may vary due to: their participation in a frequent flyer program, travel on immigrant fares, travel connecting to a cruise, representation as a courier, or membership in the military, etc. Likewise, a passenger may also be able to avail themselves of an enhanced baggage allowance or reduced fees by virtue of pre-purchasing a more advantageous baggage allowance or by using a specific credit card to pay for their travels.

A passenger’s eligibility for these entitlements is determined by the terms and conditions that were established in the selected carrier’s tariff. Carriers should ensure that accurate information is reflected in their respective tariffs and that consistent with existing practice, carriers should set out in their tariffs clear information related to a passenger’s eligibility for such entitlements. The carrier should also disclose information about these entitlements to those passengers who may have special status and ensure that applicable charges are applied.

If a participating carrier wishes to provide a passenger while enroute with a more generous baggage allowance or lower baggage fees than those which were initially established on the passenger’s itinerary, the carrier has the discretion (but is under no obligation) to do so as a courtesy to its customer.

4.4.3 Stopovers

Carriers participating in an interline itinerary should consistently apply a single set of baggage rules throughout that itinerary, as chosen by the selecting carrier. Accordingly, the baggage allowances and charges chosen at the beginning of the itinerary should remain with the passenger throughout the itinerary.

The application of baggage rules at stopover points is governed by provisions of the tariff of the carrier whose rules were chosen by the selecting carrier to apply. Accordingly, carriers should specify in their tariffs their baggage policies applicable at stopover points. For example, the tariff should indicate whether it is the carrier’s policy to charge baggage fees only one time in each direction on international interline itineraries or if it is the carrier’s policy to charge baggage fees at each point where baggage is checked, e.g. each stopover point.

The selected carrier’s baggage rules as they relate to how baggage allowances and charges are applied at stopover points should also be followed by down line carriers.

If a participating carrier wishes to forgo applying baggage charges at stopover points despite the fact that the selected carrier’s baggage rules, which were initially established on the passenger’s itinerary, indicate that baggage charges apply at subsequent stopover points, the carrier has the discretion (but is under no obligation) to do so as a courtesy to its customer.

For the purposes of the Agency’s Interline Baggage Rules for Canada, the Agency considers a stopover to be more than 24 hours.

4.4.4 Embargoes or transportation of special items

The Agency recognizes that there may be certain circumstances which prevent or in some manner adversely affect the transport of baggage on an itinerary. This may be as a result of special circumstances, including baggage that requires an above normal degree of care or due to specific types of equipment (aircraft or handling equipment at airports) that may not be universally available to all carriers on an itinerary. There may also be instances where due to the time of year or particular weather conditions, a carrier may be prevented from carrying certain types of baggage, e.g. surf boards, pets, oversized, or overweight carry-on baggage, etc. Any carrier participating in the itinerary may apply these restrictions to the passenger’s travel as long as they are reflected in that carrier’s tariff under its own baggage rules. These restrictions would then be taken into account when the passenger’s baggage rules are established by the selecting carrier at the time of purchase. The Agency encourages carriers to use automated baggage rules systems (e.g. databases, GDS, Web pages, etc.) to help ensure that embargoes and the transportation of special items are communicated amongst participating carriers and that this information is disclosed to passengers.

If a passenger is travelling on a particular itinerary in which a carrier is prevented from carrying their baggage due to the foregoing, the selecting carrier, whenever the circumstances are known to it, should disclose this information to the passenger on:

• any summary page at the end of an online purchase (i.e., the Web page that appears on the carrier’s Web site at the end of the booking process once a form of payment has been provided to purchase the ticket); and,
• the passenger’s e-ticket once the purchase has been completed.

4.4.5 Equipment changes, changes in the class of service of the passenger and irregular operations

In the case of equipment changes, changes in the class of service of the passenger and irregular operations or the like, where a carrier determines that a new ticket must be issued to the passenger reflecting any itinerary changes, the Agency’s approach should be applied to the new itinerary, which may result in a new selected carrier with new baggage rules. The passenger should be advised of the revised baggage rules applicable to their itinerary.

If the nature of the changes does not result in the need to issue a new ticket, the original baggage rules continue to apply. The Agency recognizes that due to certain operational requirements (e.g. equipment changes) a carrier may not be able to accommodate a passenger’s baggage in either the cabin or on a specific aircraft. In these instances, a carrier should not charge a passenger any additional fees, and it should make the necessary arrangements to ensure that the passenger’s baggage is transported to its destination. This may necessitate the checking of cabin baggage or the transportation of checked baggage on another aircraft. Although a carrier in these cases should not charge additional baggage fees, a carrier may wish to provide a post-purchase notice regarding the possibility of revised size and weight restrictions, and that in some instances, the passenger’s baggage may not accompany them on a specific flight. Such a notice would allow passengers to plan accordingly.

4.4.6 Passenger changes to baggage while enroute

The Agency’s approach does not prevent a carrier from charging additional baggage fees if a passenger increases the number of his or her checked or carry-on bags or varies the weight of their baggage from one flight segment to another during the course of their ticketed itinerary. Nevertheless, the baggage rules chosen by the selecting carrier at the outset of the itinerary and disclosed to the passenger at time of purchase should apply.

4.4.7 Post purchase itinerary changes made by passengers

If a passenger requests a post-purchase interline itinerary change that affects the applicable baggage rules (i.e., the passenger requests an itinerary change that results in a new ticket being issued to the passenger), the baggage allowances and fees may be reselected by the applicable selecting carrier based on the new interline itinerary as this is a passenger-driven change in the itinerary.

Additionally, the passenger should be informed at the completion of the ticket reissuance transaction on any summary Web page at the end of the online purchase and on the new e-ticket/itinerary receipt about the change in baggage fees that will result from a voluntary change in itinerary. Conditions associated with voluntary changes to a passenger’s itinerary must be reflected in a carrier’s tariff.

4.4.8 Currency

Carriers will charge fees in Canadian dollars or local currency consistent with the applicable tariff as filed with the Agency.

5. What is not covered by the Approach

The Agency’s Interline Baggage Rules for Canada do not extend to certain matters:

• The reasonability of the terms of each carrier’s baggage rules, as distinct from their applicability to an interline journey. This IN does not address the reasonability of a tariff in accordance with ATR subsection 111(1) and the Montreal and Warsaw Conventions, other than as expressed in this IN. As per the ATR, the Agency requires all carriers to have reasonable baggage rules. In all circumstances where a carrier has established an unreasonable element in its baggage rules, that carrier will be held accountable to the Agency, not a participating carrier who applied the unreasonable rule to the itinerary.
• The applicability of terms and conditions other than baggage rules in an interline context (e.g. this approach does not address denied boarding, unaccompanied minors reservation requirements, etc.).
• Intra-line (online) travel (travel on the services of only one carrier excluding code share arrangements).
• Any itinerary involving charter carriers/operations (this type of operation is not typically involved in interline arrangements).
• Travel where the origin or ultimate ticketed destination is not Canada (e.g. only a connection or technical stop occurs in Canada).
• Travel conducted under a confidential contract between the carrier and the passenger.

6. Disclosure

Disclosure forms an important part of the Agency’s Interline Baggage Rules for Canada. Due to the complexity of interline itineraries, the number of carriers potentially involved and the potential lack of information made available to passengers travelling to some destinations, consumers should be clearly informed of the baggage rules that apply to their travels. In the absence of disclosure, there may be confusion and misunderstanding, not only by passengers but also by carriers.

The Agency’s approach with respect to disclosure ensures that passengers at the time of the ticket purchase and post ticket purchase, are made aware of the applicable baggage rules associated with their interline itinerary.

6.1 Who should disclose

There are important roles for most of the parties involved in the sale of an interline itinerary.

It begins with the selecting carrier who should make known or make sure arrangements are in place to make known to down line carriers which carrier’s baggage rules apply. Down line carriers should be made aware that the passenger will be traveling with them and be familiar with and be prepared to respect the applicable baggage rules. Much of this information sharing is increasingly being achieved through automation and most carriers have access to or use automated baggage rules systems that are already in place.

Nevertheless, the ticketing carrier is ultimately responsible for the complete disclosure of the baggage rules applicable to a passenger’s interline itinerary. Carriers should also ensure that their ticket sellers, as they are acting as agents of the carrier, can fulfill the disclosure obligations of the carrier by giving them access to the necessary tools and support.

6.2 When should disclosure to the consumer occur

There are disclosure expectations before, at the time of, and after purchase. However, the specificity of the information expected to be provided will vary from the general to the more specific depending on the stage of the purchase process.

Ultimately, full disclose of applicable baggage rules can only occur on any summary Web page at the end of an online purchase and on any e-ticket sold in Canada and will be largely dependent on the choices the consumer makes as to routes, stopovers, schedules (including aircraft used) and carriers.

6.3 Information to be disclosed

6.3.1 Disclosure related to carriers’ standard baggage allowances and charges on any summary page at the end of an online purchase and e-tickets

For baggage rules provisions related to a passenger’s 1^st and 2^nd checked bag and the passenger’s carry-on baggage (i.e., the passenger’s "standard" baggage allowance), carriers and ticket sellers acting on their behalf should disclose to the passenger the applicable carrier’s baggage rules related to a passenger’s "standard" baggage allowances and charges on any summary page at the end of an online purchase and on e-ticket confirmations that were sold in Canada.

The information to be disclosed to a passenger should include, the:

1. name of the carrier whose baggage rules apply;
2. passenger’s free baggage allowance and/or applicable fees
3. size and weight limits of the baggage, if applicable;
4. terms or conditions that would alter or impact a passenger’s standard baggage allowances and charges (e.g. frequent flyer status, early check-in, pre-purchasing baggage allowances with a particular credit card);
5. existence of any embargoes that may be applicable to the passenger’s itinerary; and,
6. application of baggage allowances and charges (i.e., whether they are applied once per direction or if they are applicable at each stopover point).

Carriers should provide this information in text format on the passenger’s e-ticket confirmation. Any fee information provided for carry-on bags and the first and second checked bag should be expressed as specific charges (i.e., not a range).

Carriers should also disclose in text format to the passenger any applicable terms or conditions that would alter or impact the standard baggage allowances and charges applicable to the passenger (e.g. frequent flyers status, early check-in, pre-purchasing baggage allowances with a particular credit card and so forth) so that the passenger can ascertain the charges that would apply to their itinerary.

Ticket sellers could communicate this information to the passenger via a hyperlink from the passenger’s e-ticket to the specific location on a carrier’s Web site or the ticket seller’s Web site where such baggage information is available for review.

If the itinerary was purchased from a ticket seller in Canada, carriers should ensure that their ticket sellers are provided specific baggage information (i.e., the carrier whose baggage fees/rules apply) on the e-ticket confirmation.

Carriers are responsible for providing accurate and specific information regarding baggage allowances and fees on e-ticket confirmations sold in Canada, sufficient for passengers to determine the allowances and fees that apply to their travel. Carriers should also ensure that their tickets sellers have the necessary tools and support to meet their disclosure obligation.

In lieu of the standard baggage allowance information, carriers are encouraged to provide individualized information regarding baggage allowances and fees to passengers when possible.

6.3.2 Full disclosure of a carrier’s baggage rules on its website

Disclosure of all of a carrier’s baggage rules information on its Web site provides a means for consumers and other air carriers to verify the applicable interline itinerary baggage rules.

Carriers should disclose on their Web sites, in a convenient and prominent location, a complete and a comprehensive summary of all of their baggage rules. This information includes not only those baggage allowances and charges related to a passenger’s "standard" baggage allowance as set out above in Section 6.3.1 but also any other baggage rule information that a carrier may apply beyond its "standard" baggage allowance and charges provisions. Carriers can organize the display of this information as they deem appropriate. For instance, carriers may choose to provide a primary rule/fee page that includes links or subpages to different categories of fees to ease consumer research.

Baggage rule information provided on carriers’ Web sites should be clear and specific to ensure that consumers who are seeking details about any aspect of a carrier’s baggage rules can readily obtain and understand the information provided.

Ticket sellers may offer hyperlinks to carriers’ baggage rules information via their own Web sites or via their customers’ e-tickets to ensure that passengers have access to all of the details regarding the applicable carrier’s baggage rules.

6.3.3 Websites subject to the Agency’s approach

Carriers and their ticket sellers with Web sites targeting Canadian consumers should disclose baggage rules on such Web sites. The Agency’s Air Services Price Advertising: Interpretation Note, as amended from time to time, can be consulted to obtain further details on Web sites targeting Canadian consumers.

6.3.4 Additional information for consideration

Given that baggage charges are considered by the Agency to be optional charges pursuant to the ATR, Part V.1 - Advertising Prices, they are subject to certain price transparency and disclosure requirements. As a result, any price disclosed to the passenger must be the total amount inclusive of any third party charges (e.g. taxes, etc.). Foreign originating travel is not subject to the provisions of Part V.1. Nevertheless, the Agency encourages carriers to disclose the total amount, inclusive of all taxes, fees and charges, even in these situations.

6.4 Tariff provisions related to disclosure

Carriers should include their disclosure commitments in their filed tariffs.

6.5 Effective date, implementation and compliance

The Agency’s Interline Baggage Rules for Canada will be enforced for tickets issued on or after April 1, 2015. In particular, air carriers should have on file with the Agency tariffs in effect that reflect their interline baggage rules.

The Agency may assess a carrier’s tariff on a case by case basis to determine whether it meets the standards of the ATR, and may do so on its own motion^{Footnote 4} .

Under Canadian law, the Agency has the authority to suspend, disallow or substitute any term and condition of carriage that it deems unclear, unjust and unreasonable, or prejudicial.

6.6 Additional information

For additional information you may contact the Agency at:

Canadian Transportation Agency
Ottawa, Ontario K1A 0N9
Telephone: 1-888-222-2592
TTY: 1-800-669-5575
Facsimile: 819-997-6727

To seek feedback on any special circumstances or a particular situation, you may contact the Agency at:

E-mail: info@otc-cta.gc.ca

7. Appendices

7.1 Appendix A: IATA Resolution 302

• Baggage Provisions Selection Criteria. IATA Resolution 302

7.2 Appendix B: IATA Resolution 302 as modified by the Agency’s Reservation

7.2.1  Canadian Transportation Agency Reservation:

Alignment with the Canadian Transportation Agency’s (Agency) Interline Baggage Rules for Canada, effective for tickets issued on or after April 1, 2015, requires:

1. that a single set of baggage rules will be applied throughout a passenger’s interline itinerary issued on a single ticket whose origin or ultimate ticketed destination is a point in Canada, regardless of stopovers.
2. the carrier whose designator code is identified on the first flight segment of the passenger’s interline ticket (i.e. the selecting carrier) will select the baggage rules which will apply for the entire interline itinerary
3. for international itineraries, including domestic segments of an international itinerary, only the baggage rules of carriers with tariffs on file and in effect with the Agency are eligible to be selected for application per a) and b);
4. a carrier’s filed tariff must include:
   1. i. The carrier’s own baggage rules,
   2. ii. The circumstances/methodology that the carrier applies when it selects per a) and b) the baggage rules of any other carrier,
   3. iii. Have a statement that the carrier will apply, as its own, the rules chosen by the selecting carrier when the carrier is a down line carrier and a passenger is travelling on one of its flights as part of an interline itinerary; and,
   4. iv. The carrier’s baggage disclosure undertaking.

If per provisions of this Resolution carriers otherwise agree, in part or in whole, to another baggage regime as an amendment or as an alternative to Resolution 302, such regime shall be filed in tariffs with the Agency at least 45 days before effectiveness. Such alternative approach to Resolution 302 must comply with the Air Transportation Regulations and for certainty shall be just and reasonable and shall, under substantially similar circumstances and conditions and with respect to all traffic of the same description, be applied equally to all that traffic. Any alternative regime should also respect the two fundamental principles of the Agency’s Interline Baggage Rules for Canada, namely, 1) a seamless and transparent baggage regime for passengers and 2) a harmonized and practical regime for industry.

7.3 Appendix C: U.S. Rule 399.87 & U.S. DOT FAQs

• U.S. Rule 399.87: April 2011 Amendment Federal Register Version
• U.S. DOT FAQs: FAQ on Rule2 for Enhancing Airline Passenger Protections

7.4 Appendix D: Carriers who file tariffs with the Agency

The following is a list of carriers that currently file tariffs with the Canadian Transportation Agency applicable to scheduled international transportation to/from Canada. This list should be used for determining baggage rule selection as per the Interline Baggage Rules for Canada for transportation to/from Canada.

7.5 Appendix E: Agency approach examples

7.5.1 Domestic

7.5.1.1 Domestic interline - Simple

YOW – XX – x/YHZ – BB – x/YYT – CC – YDF
The passenger is flying with Carrier XX from Ottawa to Halifax, connecting in Halifax onto Carrier BB to St. John’s Nfld, connecting in St. John’s with carrier CC to Deer Lake, Newfoundland.

 As Carrier XX is the first carrier whose designator code is identified on the itinerary (the selecting carrier), it will apply its rules(Carrier XX) to the entire itinerary. The MSC methodology does not apply to domestic interline transportation.

7.5.1.2 Domestic interline – code sharing

YOW – BB* – x/YHZ – BB – x/YYT – CC – YDF
Where carrier BB* is the marketing carrier, Carrier XX is the operating carrier The passenger is flying with Carrier BB from Ottawa to Halifax, connecting in Halifax onto Carrier BB to St. John’s Nfld, connecting in St. John’s with carrier CC to Deer Lake, Newfoundland.

 As Carrier BB is the first carrier whose designator code is identified on the itinerary (the selecting carrier), it will apply its rules (Carrier BB) to the entire itinerary. The MSC methodology does not apply to domestic interline transportation.

7.5.2 Transborder

7.5.2.1 Transborder itinerary - Simple

YTZ – XX – BOS – BB – YOW
The passenger is flying with Carrier XX from Toronto to Boston. The return flight, the passenger is flying with Carrier BB from Boston to Ottawa

 As Carrier XX is the selecting carrier it may choose to:

1. Apply its own rules (Carrier XX); or,
2. Apply the MSC methodology to the itinerary which would result in Carrier XX rules applying to the entire itinerary since Carrier XX is the first carrier to cross an international boundary.

7.5.2.2 Transborder itinerary - more complex

YHM – XX – x/YTZ – BB – x/MCO – BB – PSP – CC – x/YYC – XX – YHM
The passenger is flying with Carrier XX from Hamilton to Toronto, connecting in Toronto and Orlando with Carrier BB to Palm Springs. The return flight, the passenger is flying with Carrier CC from Palm Springs to Hamilton, connecting in Calgary

 As Carrier XX is the selecting carrier it may choose to:

1. Apply its own rules (Carrier XX); or,
2. Apply the MSC methodology to the itinerary which would result in Carrier BB rules applying to the entire itinerary since Carrier BB is the first carrier to cross an international boundary.

7.5.2.3 Transborder itinerary- code-sharing

YVR – CC – SEA – DD - YVR
Where Carrier CC is the marketing carrier; Carrier DD is the operating carrier Where Carrier DD is the marketing carrier; Carrier CC is the operating carrier The passenger is flying with Carrier CC from Vancouver to Seattle. The return flight, the passenger is flying with Carrier DD from Seattle to Vancouver

 As Carrier CC is the selecting carrier it may choose to:

1. Apply its own rules (Carrier CC); or,
2. Apply the MSC methodology to the itinerary which would result in Carrier CC rules applying to the entire itinerary since Carrier CC is the first carrier to cross an international boundary.

7.5.3 International

7.5.3.1 International interline itineraries – origin Canada (simple)

YWG – CC – x/YYZ – CC – x/FRA – DD – GVA – DD – LON – CC – x/YYZ – CC – YWG
The passenger is flying with Carrier CC from Winnipeg to Geneva (connecting in Toronto with Carrier CC and Frankfurt with Carrier DD). On the return, the passenger is flying with Carrier DD from Geneva to London (stopping in London), then with Carrier CC flying from London to Winnipeg (connecting in Toronto). Carriers CC and DD have tariffs on file with Canada

 As Carrier CC is the selecting carrier it may choose to:

1. Apply its own rules (Carrier CC); or,
2. Apply the MSC methodology to the itinerary which would result in Carrier CC rules applying to the entire itinerary since Carrier CC is the first carrier to cross between IATA tariff conference areas.

YWG – XX – x/YYZ – BB – AMS – CC – MAD – CC – x/AMS – BB – x/YYZ – XX – YYC

The passenger is flying with Carrier XX from Winnipeg to Toronto, connecting in Toronto with Carrier BB to Amsterdam (stopping over in AMS).The Passenger then flies with Carrier CC from Amsterdam to Madrid (stopping in MAD) On the return flights home the passenger flies with Carrier CC from Madrid to Amsterdam and then connecting in Amsterdam onto Carrier BB to Toronto, connecting in Toronto onto Carrier XX to Calgary. Carriers XX, BB, CC have tariffs on file with Canada

 As Carrier XX is the selecting carrier it may choose to:

1. Apply its own rules (Carrier XX); or,
2. Apply the MSC methodology to the itinerary which would result in Carrier BB rules applying to the entire itinerary since Carrier BB is the first carrier to cross between IATA tariff conference areas.

7.5.3.2 International interline itinerary – origin international (simple)

SHA – XX – HKG – BB – x/TPE – BB – YVR – XX – SHA
The passenger is flying with Carrier XX from Shanghai to Hong Kong (stopping over in HKG).Then the passenger is flying with Carrier BB from Hong Kong connecting in Taipei to Vancouver (stopping in Vancouver). The return flight is with Carrier XX from Vancouver to Shanghai. Carriers XX and BB have tariffs on file with Canada.

 As Carrier XX is the selecting carrier it may choose to:

1. Apply its own rules (Carrier XX); or,
2. Apply the MSC methodology to the itinerary which would result in Carrier BB rules applying to the entire itinerary since Carrier BB is the first carrier to cross between IATA tariff conference areas.

7.5.3.3 International interline itinerary - code-sharing example

YWG – BB* – x/YYZ – BB – AMS – CC** – MAD – CC** – x/AMS – BB – x/YYZ – BB* – YYC

Where Carrier BB* is the marketing carrier; Carrier XX is the operating carrier. Where Carrier CC** is the marketing carrier; Carrier DD is the operating carrier. The passenger is flying with Carrier BB from Winnipeg to Toronto, connecting in Toronto with Carrier BB to Amsterdam (stopping over in AMS).The Passenger then flies with Carrier CC from Amsterdam to Madrid (stopping in MAD). On the return flights home the passenger flies with Carrier CC from Madrid to Amsterdam and then connecting in Amsterdam onto Carrier BB to Toronto, connecting in Toronto onto Carrier BB to Calgary. Carriers XX, BB, CC have tariffs on file with Canada

 As Carrier BB is the selecting carrier it may choose to:

1. Apply its own rules (Carrier BB); or,
2. Apply the MSC methodology to the itinerary which would result in Carrier BB rules applying to the entire itinerary since Carrier BB is the first carrier to cross between IATA tariff conference areas.

7.5.3.4 International interline itinerary – stopover example

YEG–XX–x/YYZ–XX–x/FRA–BB–BKG–CC–SYD–DD–MEL–DD–x/SYD–XX–x/YVR–XX–YEG

Passenger is flying on Carrier XX from Edmonton to Toronto, connecting in Toronto onto Carrier XX to Frankfurt, connecting in Frankfurt on Carrier BB to Bangkok, stopping over in Bangkok, flying on carrier CC from Bangkok to Sydney, stopping over in Sydney, and then flying on Carrier DD from Sydney to Melbourne, stopping over in Melbourne On the return, passenger is flying on Carrier DD from Melbourne to Sydney, connecting in Sydney onto Carrier XX to Vancouver, and then connecting in Vancouver onto Carrier XX to Edmonton. Carriers XX, BB, CC, and DD have tariffs on file with Canada.

 As Carrier XX is the selecting carrier it may choose to:

1. Apply its own rules (Carrier XX); or,
2. Apply the MSC methodology to the itinerary which would result in Carrier XX rules applying to the entire itinerary since Carrier XX is the first carrier to cross between IATA tariff conference areas.

7.5.3.5 International interline itinerary - ultimate ticketed point example

MOW – XX – x/FCO – BB – x/YUL – CC – YYZ – DD – EWR – EE – MOW

Passenger is flying with Carrier XX from Moscow to Rome, connecting in Rome onto Carrier BB to Montreal, connecting in Montreal onto Carrier CC to Toronto (stopping over in Toronto).The passenger then flies with Carrier DD from Toronto to Newark (stopping in Newark). On the return flight, the passenger flies with Carrier EE from Newark to Moscow. Carriers XX, BB, CC, DD and EE have tariffs on file with Canada.

 As Carrier XX is the selecting carrier it may choose to:

1. Apply its own rules (Carrier XX); or,
2. Apply the MSC methodology to the itinerary which would result in Carrier BB rules applying to the entire itinerary since Carrier BB is the first carrier to cross between IATA tariff conference areas.

 In situations where a passenger’s origin is a non-Canadian point and the itinerary includes at least one stop in Canada, as well as at least one stop outside of Canada. If the stop in Canada is the farthest ticketed point and the stop is more than 24 hours the Agency would consider the ultimate ticketed destination to be Canada. As a consequence, its Interline Baggage Rules for Canada applies.

7.5.3.6 International interline itinerary - no tariff filed for 1^st carrier on itinerary

MVD – XX – x/EZE – BB –x/YYZ – CC - YVR
Passenger is flying with Carrier XX from Montevideo to Buenos Aires, connecting in Buenos Aires on Carrier BB to Toronto and then connecting in Toronto onto Carrier CC to Vancouver. Carriers BB and CC have tariffs on file with Canada. Carrier XX does not have a tariff on file with Canada.

 Under the Agency’s approach Carrier XX would normally be the selecting carrier on such an interline itinerary, however, Carrier XX does not have a tariff on file with the Agency and as a consequence may not be the selecting carrier.

 The selecting carrier becomes the next down line carrier who does have a tariff on file with the Agency. That carrier is Carrier BB. Carrier BB can choose to:

1. Apply its own rules (Carrier BB); or,
2. Apply the MSC methodology to the itinerary which would result in Carrier BB rules applying to the entire itinerary since Carrier BB is the first carrier to cross between IATA tariff sub- conference areas.

7.6 Appendix F: Terminology

Carrier definitions (various)

Carrier

For the purposes of the Agency’s approach to interline baggage, a carrier includes Canadian and foreign carriers, licensed and unlicensed providing transportation by air to, from and within Canada where Canada is the origin or the ultimate ticketed destination.

Down line carrier

any carrier, other than the selecting carrier, who is identified as providing interline transportation to the passenger by virtue of the passenger’s ticket

Marketing carrier

the carrier that sells flights under its code.

Most significant carrier (MSC)

is determined by a methodology, established by IATA (Resolution 302) (see Appendix 7.1.1), which establishes, for each portion of a passenger's itinerary where baggage is checked through to a new stopover point, which carrier will be performing the most significant part of the service. For travelers under the Resolution 302 system, the baggage rules of the MSC will apply. For complex itineraries involving multiple checked baggage points, there may be more than one MSC, resulting in the application of differing baggage rules through an itinerary.

Most significant carrier (MSC) – IATA Resolution 302 as conditioned by the Agency

In this instance, the MSC is determined by applying IATA’s Resolution 302 methodology as conditioned by the Agency. The Agency’s reservation has stipulated that only a single set of baggage rules may apply to any given interline itinerary. The aim of the Agency’s reservation is to allow the selecting carrier to use the MSC methodology to determine which carrier’s baggage rules apply to an international interline itinerary to or from Canada, while reinforcing the role of tariffs in the determination of which carrier’s rules apply.

Operating carrier

the carrier that operates the actual flight

Participating carrier(s)

includes both the selecting carrier and down line carriers who have been identified as providing interline transportation to the passenger by virtue of the passenger’s ticket.

Selected carrier

the carrier whose baggage rules apply to the entire interline itinerary.

Selecting carrier

the carrier whose designator code is identified on the first flight segment of the passenger’s ticket at the beginning of an interline itinerary issued on a single ticket whose origin or ultimate destination is in Canada.

Other Terminology

Airline designator code

an identification code comprised of two-characters which is used for commercial and traffic purposes such as reservations, schedules , timetables, ticketing, tariffs and airport display systems. Airline designators are assigned by IATA. When this code appears on a ticket, it reflects the carrier that is marketing the flight, which might be different from the carrier operating the flight.

Baggage

includes both checked and carry-on baggage.

Baggage rules

the conditions associated with the acceptance of baggage, services incidental to the transportation of baggage, allowances and all related charges. For example, baggage rules should address the following topics:

• The maximum weight and dimensions of passenger bags, if applicable, both checked and unchecked;
• The number of checked and unchecked passenger bags that can be transported and the applicable charges;
• Excess and oversized baggage charges;
• Charges related to check-in, collection and delivery of checked baggage;
• Acceptance and charges related to special items, e.g. surf boards, pets bicycles, etc.
• Baggage provisions related to prohibited or unacceptable items, including embargoes
• Terms or conditions that would alter or impact the baggage allowances and charges applicable to passengers (e.g. frequent flyer status, early check in, pre-purchasing baggage allowances with a particular credit card);and,
• Other rules governing treatment of baggage at stopover points, including passengers subject to special baggage allowances or charges, etc.

Code share

an arrangement between air carriers in which one air carrier (marketing carrier) sells transportation in its name (under its code) on flights operated by the partner air carrier (operating carrier). Transportation involving a code share is considered interline travel.

Conference areas

divisions of the world by the International Air Transportation Association (IATA) used to establish fares. There are three Conference areas, which roughly correspond as follows:

1. North and South America;
2. Europe Africa and the Middle East; and
3. Asia and the Pacific.

Interline agreement

an agreement between two or more carriers to co-ordinate the transportation of passengers and their baggage from the flight of one air carrier to the flight of another air carrier (through to the next point of stopover).

Interline itinerary

all flights reflected on a single ticket involving multiple air carriers. Only travel on a single ticket is subject to the Agency’s approach provided the origin or the ultimate ticketed destination is a point in Canada.

Interline travel

travel involving multiple air carriers listed on a single ticket that is purchased via a single transaction.

Single ticket

a document that permits travel from origin to destination. It may include interline/code-share and intra-line segments. It may also include end-to-end combinations (i.e. stand alone fares that can be bought separately but combined together to form one price).

Summary page at the end of an online purchase

any page on a carrier’s Web site which summarizes the details of a ticket purchase transaction just after the passenger has agreed to purchase the ticket from the carrier and has provided a form of payment

Tariff

a tariff is the contract of carriage between an air carrier and its passengers. It contains enforceable provisions respecting passengers’ rights and obligations, as well as the air carrier’s rights and responsibilities towards the passenger. It must include the applicable baggage rules and charges of the air carrier.

Ticket seller

any person that sells air transportation and issues tickets on behalf of a carrier. This excludes an employee of an air carrier.

Ultimate ticketed destination

In situations where a passenger’s origin is a non-Canadian point and the itinerary includes at least one stop in Canada, as well as at least one stop outside of Canada. If the stop in Canada is the farthest checked point and the stop is more than 24 hours, the Agency would consider the ultimate ticketed destination to be Canada.

7.7 Appendix G : Legislative reference

Air carriers are required to set their policies in their tariff, including provisions respecting interline baggage rules and these policies must be clear, reasonable, not unduly discriminatory and not prejudicial.

The Agency’s jurisdiction in matters respecting international tariffs is set out, in part, in Part V, Tariffs, of the Air Transportation Regulations, SOR/88-58, as amended (ATR).

Section 110 of the ATR provides, in part, that:

110(1) Except as provided in an international agreement, convention or arrangement respecting civil aviation, before commencing the operation of an international service, an air carrier or its agent shall file with the Agency a tariff for that service, including the terms and conditions of free and reduced rate transportation for that service, in the style, and containing the information, required by this Division

…

110(4) Where a tariff is filed containing the date of publication and the effective date and is consistent with these Regulations and any orders of the Agency, the tolls and terms and conditions of carriage in the tariff shall, unless they are rejected, disallowed or suspended by the Agency or unless they are replaced by a new tariff, take effect on the date stated in the tariff, and the air carrier shall on and after that date charge the tolls and apply the terms and conditions of carriage specified in the tariff.

110(5) No air carrier or agent thereof shall offer, grant, give, solicit, accept or receive any rebate, concession or privilege in respect of the transportation of any persons or goods by the air carrier whereby such persons or goods are or would be, by any device whatever, transported at a toll that differs from that named in the tariffs then in force or under terms and conditions of carriage other than those set out in such tariffs.

Section 111 of the ATR provides, in part, that:

111(1) All tolls and terms and conditions of carriage, including free and reduced rate transportation, that are established by an air carrier shall be just and reasonable and shall, under substantially similar circumstances and conditions and with respect to all traffic of the same description, be applied equally to all that traffic.

...

(2)(c) No air carrier shall, in respect of tolls or the terms and conditions of carriage, subject any person or other air carrier or any description of traffic to any undue or unreasonable prejudice or disadvantage in any respect whatever.

...

(3) The Agency may determine whether traffic is to be, is or has been carried under substantially similar circumstances and conditions and whether, in any case, there is or has been unjust discrimination or undue or unreasonable preference or advantage, or prejudice or disadvantage, within the meaning of this section, or whether in any case the air carrier has complied with the provisions of this section or section 110.

In addition, paragraph 122(a) of the ATR provides, in part, that:

Every tariff shall contain:

(a) the terms and conditions governing the tariff generally, stated in such a way that it is clear as to how the terms and conditions apply to the tolls named in the tariff;

[...]

(c) the terms and conditions of carriage, clearly stating the air carrier's policy in respect of at least the following matters, namely,

[...]

(ix) method of calculation of charges not specifically set out in the tariff

7.8 Appendix H: Sample Tariff Provisions developed by Agency staff

• Rule 54: Interline Baggage Acceptance
• Rule 55: Baggage Acceptance