Decision No. 467-A-2013

December 20, 2013

APPLICATION by Nihon Koku Kabushiki Gaisha (Japan Airlines Co., Ltd.) carrying on business as Japan Airlines and JAL, on behalf of itself and Malaysian Airline System Berhad carrying on business as Malaysia Airlines, 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/J205-M216

Nihon Koku Kabushiki Gaisha (Japan Airlines Co., Ltd.) carrying on business as Japan Airlines and JAL (Japan Airlines), on behalf of itself and Malaysian Airline System Berhad carrying on business as Malaysia Airlines (Malaysia Airlines), has applied to the Canadian Transportation Agency (Agency) for an approval to permit Malaysia Airlines to provide its scheduled international service between Malaysia and Canada by selling transportation in its own name on flights operated by Japan Airlines between Tokyo, Japan and Vancouver, British Columbia, Canada, beginning on December 24, 2013.

Japan Airlines has also requested an exemption from the application of subsection 8.2(2) of the Air Transportation Regulations (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 Canada Transportation Act (CTA), exempts Japan Airlines from the application of subsection 8.2(2) of the ATR.

Malaysia Airlines is licensed to operate a scheduled international service in accordance with the Agreement between the Government of Canada and the Government of Malaysia on Air Transport signed on January 18, 1996, 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, 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 Malaysia Airlines of aircraft and flight crew provided by Japan Airlines, and the provision by Japan Airlines of such aircraft and flight crew to Malaysia Airlines, to permit Malaysia Airlines to provide its scheduled international service on licensed routes between Malaysia and Canada by selling transportation in its own name on flights operated by Japan Airlines between Tokyo and Vancouver, beginning on December 24, 2013 to December 23, 2016.

This approval is subject to the following conditions:

  1. Malaysia Airlines shall continue to hold the valid licence authority.
  2. Malaysia Airlines 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. Japan Airlines and Malaysia 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. Malaysia Airlines shall continue to comply with the public disclosure requirements set out in section 8.5 of the ATR.
  6. Japan Airlines and Malaysia 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.
  7. Air transportation using Malaysia Airlines’ code on flights operated by Japan Airlines between Tokyo and Vancouver shall not be sold separately and shall only be available to traffic carried on a continuous journey under Malaysia Airlines’ code between Malaysia and Canada. No local traffic may be carried under Malaysia Airlines’ code between Tokyo and Vancouver.
  8. This approval does not apply to the carriage of cargo.

Member(s)

Sam Barone
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