Decision No. 45-A-2017
APPLICATION by Delta Air Lines, Inc. carrying on business as Delta Air Lines, as Delta and as Delta Shuttle (Delta), on behalf of itself; SkyWest Airlines, Inc. carrying on business as Delta Connection and as United Express, among others (SkyWest); and Virgin Australia International Airlines Pty Ltd. carrying on business as Virgin Australia (Virgin Australia), 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).
Delta, on behalf of itself, SkyWest and Virgin Australia, has applied to the Canadian Transportation Agency (Agency) for an approval to permit Virgin Australia to provide its scheduled international service between Australia and Canada by selling transportation in its own name on flights operated by Delta and SkyWest between the United States of America and Canada, for an indefinite period.
Delta 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 Delta from the application of subsection 8.2(2) of the ATR.
Virgin Australia is licensed to operate, through code sharing, a scheduled international service in accordance with the Agreement between the Government of Canada and the Government of Australia relating to Air Services signed on July 5, 1988.
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 Virgin Australia of aircraft with flight crew provided by Delta and SkyWest, and the provision by Delta and SkyWest of such aircraft and flight crew to Virgin Australia, to permit Virgin Australia to provide its scheduled international service on licensed routes between Canada and Australia by selling transportation in its own name on flights operated by Delta and SkyWest between the United States of America and Canada, for an indefinite period beginning on March 18, 2017.
This approval is subject to the following conditions:
- Virgin Australia shall continue to hold the valid licence authority.
- Virgin Australia 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.
- The air service approved shall only be provided as long as a code-sharing agreement providing for such service remains in effect.
- Delta, SkyWest and Virgin Australia 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.
- Virgin Australia shall continue to comply with the public disclosure requirements set out in section 8.5 of the ATR.
- Delta, SkyWest and Virgin Australia shall provide the Agency with a copy of any new agreement or amendments to their code-sharing agreements, including any new or amended annex, without delay.
- Air transportation using Virgin Australia’s code on flights operated by Delta and SkyWest between the United States of America and Canada shall not be sold separately and shall only be available to traffic carried on a continuous journey under Virgin Australia’s code between Australia and Canada. No local traffic may be carried under Virgin Australia’s code between the United States of America and Canada.