Decision No. 530-A-2009

December 31, 2009

December 31, 2009

APPLICATION by Trans States Airlines, LLC carrying on business as, among others, United Express, on behalf of itself and United Air Lines, Inc., 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


Trans States Airlines, LLC carrying on business as, among others, United Express (Trans States), on behalf of itself and United Air Lines, Inc. (United), has applied to the Canadian Transportation Agency (Agency) for an approval to permit United to provide its scheduled international service between the United States of America and Canada by selling transportation in its own name on flights operated by Trans States between points in the United States of America and points in Canada, for an indefinite period commencing on January 1, 2010.

Trans States 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.

With respect to the request for an exemption from the application of subsection 8.2(2) of the ATR, the Agency has considered the request and is of the opinion that compliance by Trans States 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), orders that Trans States be exempt from the application of subsection 8.2(2) of the ATR.

United is licensed to operate a scheduled international service in accordance with the Air Transport Agreement between the Government of Canada and the Government of the United States of America signed on March 12, 2007 (Agreement).

The Agency has reviewed and considered the application and the material in support and is satisfied that it meets the remaining requirements of section 8.2 of the Air Transportation Regulations (ATR).

With respect to the duration of the approval, the Agency notes that code sharing is specifically permitted in the Agreement, subject to the normal regulatory requirements of the aeronautical authorities. Furthermore, the carriers from the United States of America have unrestricted access to Canada for transborder services. Under such circumstances, the Agency considers it appropriate to grant approval for an indefinite period.

Accordingly, the Agency, pursuant to paragraph 60(1)(b) of the Canada Transportation Act (CTA) and section 8.2 of the ATR, approves the use by United of aircraft and flight crew provided by Trans States, and the provision by Trans States of such aircraft and flight crew to United, to permit United to provide its scheduled international service between the United States of America and Canada by selling transportation in its own name on flights operated by Trans States between points in the United States of America and points in Canada, for an indefinite period commencing on January 1, 2010, subject to the following conditions:

  1. United shall continue to hold the required licence authority.
  2. The carriage of local traffic between points in Canada is prohibited.
  3. United shall apply its published tariffs, in effect, to the carriage of its traffic. In particular, 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.
  4. The air service approved shall only be provided as long as a commercial agreement providing for such services remains in effect.

United and Trans States are reminded of the continuing requirement to comply with sections 8.2 and 8.5 of the ATR.

United and Trans States are further reminded to provide the Agency with a copy of any new agreement or amendments to their commercial agreement, including any new or amended annex, without delay.

This approval does not exempt United and Trans States from the requirements of other legislative acts or regulations, including those of Transport Canada.

Members

  • Raymon J. Kaduck
  • John Scott

Member(s)

Raymon J. Kaduck
John Scott
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