Order No. 2002-P-A-314

August 8, 2002

August 8, 2002

IN THE MATTER OF a complaint by Dan Motisca concerning the fares offered by Air Canada on the Prince Rupert-Vancouver route - Decision No. 99-P-A-2001 dated March 7, 2001.

File No. M4370/A74/00-274


In its Decision No. 99-P-A-2001 dated March 7, 2001, the Canadian Transportation Agency (hereinafter the Agency) determined that the $398 V14SNR fare published or offered by Air Canada in respect of its domestic service between Prince Rupert and Vancouver on or about August 10, 2000, was unreasonable. As a result, the Agency advised Air Canada of its intention to direct the carrier, pursuant to paragraph 66(1)(b) of the Canada Transportation Act, S.C., 1996, c. 10 (hereinafter the CTA), to amend its tariff by reducing the V14SNR fare offered in respect of its service between Prince Rupert and Vancouver so that the V14SNR fare is comparable to the L-14VALU fares Air Canada offers in respect of its domestic service between Winnipeg and Saskatoon.

In its Decision No. 361-P-A-2001 dated June 29, 2001, the Agency decided that, as a consequence of changes made by Air Canada to the pricing structure on the Prince Rupert-Vancouver route since the filing of the complaint and the introduction of limited competition on the route on February 27, 2001 by Hawkair Aviation Services Limited, the Agency would not, at that time, direct Air Canada to amend its tariff in the manner set out in Decision No. 99-P-A-2001. However, in accordance with paragraph 66(7)(a) of the CTA, Air Canada was required to keep the Agency informed of all changes or modifications to its existing tariffs in respect of its service between Prince Rupert and Vancouver as they occurred for a period up to and including July 4, 2002, the period within which the Agency was authorized to make a finding under subsection 66(1) and (2) of the CTA on its own motion.

Pursuant to Privy Council Order No. P.C. 2002-1169 dated 4 July, 2002, the Governor in Council extended until July 5, 2004 the period within which the Agency may, on its own motion, make a finding under subsection 66(1) or (2) of the CTA.

Accordingly, the Agency considers it appropriate to similarly extend the period within which Air Canada is required to keep the Agency informed of all changes or modifications to its existing tariffs in respect of its service between Prince Rupert and Vancouver as they occur. Therefore, the Agency, pursuant to section 8 of the National Transportation Agency General Rules, SOR/88-23, hereby extends the period within which Air Canada is required to keep the Agency informed of all changes or modifications to its existing tariffs in respect of its service between Prince Rupert and Vancouver as they occur for a period up to and including July 5, 2004.

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