Decision No. 462-A-2012

December 7, 2012

APPLICATION by United Air Lines, Inc., on behalf of itself and All Nippon Airways Co., Ltd., and on behalf of Shuttle America Corporation, SkyWest Airlines, Inc. and ExpressJet Airlines, Inc., all carrying on business as, among others, United Express, pursuant to section 60 of the Canada Transportation Act, S.C., 1996, c. 10, as amended, and section 8.2 of the Air Transportation Regulations, SOR/88-58, as amended.

File No.: 
M4835-38-3

United Air Lines, Inc. (United), on behalf of itself and All Nippon Airways Co., Ltd. (All Nippon), and on behalf of Shuttle America Corporation, SkyWest Airlines, Inc. and ExpressJet Airlines, Inc., all carrying on business as, among others, United Express (United Express), has applied to the Canadian Transportation Agency (Agency) for an approval to permit All Nippon to provide its scheduled international service between Japan and Canada by selling transportation in its own name on flights operated by United and United Express between the United States of America and Canada, for an indefinite period or such period as may be authorized by the Agency.

As the application was filed less than 45 days before the first planned flight, as required by subsection 8.2(2) of the Air Transportation Regulations (ATR), an exemption from the application of this provision is necessary. 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(l)(c) of the Canada Transportation Act (CTA), exempts United from the application of subsection 8.2(2) of the ATR.

All Nippon is licensed to operate a scheduled international service in accordance with the Agreement between the Government of Canada and the Government of Japan for Air Services signed on January 12, 1955, as amended (Agreement).

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.

With respect to the duration of the approval requested, in light of the provisions of the Agreement, the Agency considers three years to be appropriate.

Accordingly, the Agency, pursuant to paragraph 60(1)(b) of the CTA and section 8.2 of the ATR, approves the use by All Nippon of aircraft and flight crew provided by United and United Express, and the provision by United and United Express of such aircraft and flight crew to All Nippon, to permit All Nippon to provide its scheduled international service on licensed routes between Japan and Canada by selling transportation in its own name on flights operated by United and United Express between the United States of America and Canada, for a period of three years from the date of this Decision.

This approval is subject to the following conditions:

  1. All Nippon shall continue to hold the valid licence authority.
  2. All Nippon 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. United, All Nippon and United Express 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. All Nippon shall continue to comply with the public disclosure requirements set out in section 8.5 of the ATR.
  6. United and All Nippon 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.
  7. Air transportation using All Nippon’s code on flights operated by United and United Express 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 All Nippon’s code between Japan and Canada. No local traffic may be carried under All Nippon’s code between the United States of America and Canada.

Member(s)

Raymon J. Kaduck
Jean-Denis Pelletier, P.Eng.
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