Determination No. A-2017-202
APPLICATION by Aerovias de Mexico S.A. de C.V. carrying on business as AeroMexico (AeroMexico), on behalf of itself; Delta Air Lines, Inc. and Endeavor Air, Inc. all carrying on business as, among others, Delta Connection (Delta Connection), 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).
AeroMexico, on behalf of itself and Delta Connection, has applied to the Canadian Transportation Agency (Agency) for an approval to permit AeroMexico to provide its scheduled international service between Mexico and Canada by selling transportation in its own name on flights operated by Delta Connection between the United States of America and Canada, for an indefinite period.
AeroMexico 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 AeroMexico from the application of subsection 8.2(2) of the ATR.
AeroMexico is licensed to operate a scheduled international service in accordance with the Agreement between the Government of Canada and the Government of the United Mexican States on Air Transport, signed on February 18, 2014 (Agreement).
Under the terms of the Agreement, code sharing between designated airlines and third-country carriers is permitted. That is, while providing services between Canada and Mexico, the designated airlines may code share on each other's flights, or on flights operated by a carrier of a third country.
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 AeroMexico of aircraft with flight crew provided by Delta Connection, and the provision by Delta Connection of such aircraft and flight crew to AeroMexico, to permit AeroMexico to provide its scheduled international service on licensed routes between Mexico and Canada by selling transportation in its own name on flights operated by Delta Connection between the United States of America and Canada, for an indefinite period from the date of this Determination.
This approval is subject to the following conditions:
- AeroMexico shall continue to hold the valid licence authority.
- AeroMexico 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.
- AeroMexico and Delta Connection 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.
- AeroMexico shall continue to comply with the public disclosure requirements set out in section 8.5 of the ATR.
- AeroMexico and Delta Connection 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.
- Air transportation using AeroMexico's code on flights operated by Delta Connection 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 AeroMexico's code between Mexico and Canada or the United States of America. No local traffic may be carried under AeroMexico's code between the United States of America and Canada.