Decision No. 387-A-2016

December 30, 2016
APPLICATION by American Airlines, Inc. (American Airlines), on behalf of itself and LATAM Airlines Group S.A. carrying on business as LATAM Airlines Group (LATAM), pursuant to section 60 of the Canada Transportation Act, S.C., 1996, c.10, as amended (CTA), and section 8.2 of the Air Transportation Regulations, SOR/88-58, as amended (ATR).
Case number: 
16-06015

American Airlines, on behalf of itself and LATAM, has applied to the Canadian Transportation Agency (Agency) for an approval to permit LATAM to provide its scheduled international service between Chile and Canada by selling transportation in its own name on flights operated by American Airlines between the United States of America and Canada, for an indefinite period.

American Airlines has also requested an exemption from the application of subsection 8.2(2) of the ATR, which requires the filing of an application for an approval at least 45 days before the first planned flight. The Agency finds that compliance with subsection 8.2(2) of the ATR is impractical in this case. Accordingly, the Agency, pursuant to paragraph 80(1)(c) of the CTA, exempts American Airlines from the application of subsection 8.2(2) of the ATR.

LATAM is licensed to operate a scheduled international service in accordance with the Agreement between the Government of Canada and the Government of the Republic of Chile on Air Transport signed on December 4, 2003.

The Agency has considered the application and the material in support 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, approves the use by LATAM of aircraft with flight crew provided by American Airlines, and the provision by American Airlines of such aircraft and flight crew to LATAM, to permit LATAM to provide its scheduled international service on licensed routes between Chile and Canada by selling transportation in its own name on flights operated by American Airlines between the United States of America and Canada, for an indefinite period from the date of this Decision.

This approval is subject to the following conditions:

  1. LATAM shall continue to hold the valid licence authority.
  2. LATAM shall apply its published tariffs, in effect, to the carriage of its traffic. 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 air service approved shall only be provided as long as a code-sharing agreement providing for such service remains in effect.
  4. LATAM and American Airlines shall continue to comply with the insurance requirements set out in subsections 8.2(4), 8.2(5) and 8.2(6) of the ATR.
  5. LATAM shall continue to comply with the public disclosure requirements set out in section 8.5 of the ATR.
  6. LATAM and American Airlines shall provide the Agency with a copy of any new agreement or amendments to their code-sharing agreement, including any new or amended annex, without delay.

Member(s)

Sam Barone
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