Determination No. A-2017-39

April 28, 2017
APPLICATION by Air Canada also carrying on business as Air Canada rouge and as Air Canada Cargo (Air Canada); on behalf of itself, Jazz Aviation LP, as represented by its general partner, Aviation General Partner Inc., Sky Regional Airlines Inc., Air Georgian Limited and Exploits Valley Air Services Ltd. all carrying on business as, among others, Air Canada Express (Air Canada Express); 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).
Case number: 
17-01980
17-01982

Air Canada, on behalf of itself, Air Canada Express and Virgin Australia, has applied to the Canadian Transportation Agency (Agency) for approvals to permit:

  1. Virgin Australia to provide its scheduled international service between Australia and Canada and beyond Canada to the United States of America by selling transportation in its own name on flights operated by Air Canada between Canada and Australia; and by selling transportation in its own name on flights operated by Air Canada and Air Canada Express between points in Canada, and between Canada and the United States of America; and
  2. Air Canada to provide its scheduled international services between Canada and Australia and beyond Australia to New Zealand by selling transportation in its own name on flights operated by Virgin Australia between points in Australia, and between Australia and New Zealand.

These approvals are requested for an indefinite period.

Air Canada 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 Air Canada 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.

Air Canada is licensed to operate a scheduled international service, large aircraft, in accordance with the Agreement between the Government of Canada and the Government of Australia relating to Air Services, signed on July 5, 1988. Air Canada is also licensed to operate a scheduled international service, large aircraft, in accordance with the Agreement between the Government of Canada and the Government of New Zealand on Air Transport, signed on July 21, 2009.

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:

  1. Virgin Australia of aircraft with flight crew provided by Air Canada and Air Canada Express, and the provision by Air Canada and Air Canada Express of such aircraft and flight crew to Virgin Australia, to permit Virgin Australia to provide its scheduled international service on licensed routes between Australia and Canada and beyond Canada to the United States of America by selling transportation in its own name on flights operated by Air Canada between Canada and Australia; and by selling transportation in its own name on flights operated by Air Canada and Air Canada Express between points in Canada, and between Canada and the United States of America; and
  2. Air Canada of aircraft with flight crew provided by Virgin Australia, and the provision by Virgin Australia of such aircraft and flight crew to Air Canada, to permit Air Canada to provide its scheduled international services on licensed routes between Canada and Australia and beyond Australia to New Zealand by selling transportation in its own name on flights operated by Virgin Australia between points in Australia, and between Australia and New Zealand.

These approvals are granted for an indefinite period from the date of this Decision, and are subject to the following conditions:

  1. Air Canada and Virgin Australia shall continue to hold the valid licence authorities.
  2. Air Canada and Virgin Australia shall apply their published tariffs, in effect, to the carriage of their 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 services approved shall only be provided as long as a code-sharing agreement providing for such services remains in effect.
  4. Air Canada, Air Canada Express 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.
  5. Air Canada and Virgin Australia shall continue to comply with the public disclosure requirements set out in section 8.5 of the ATR.
  6. Air Canada and Virgin Australia 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 Virgin Australia’s code on flights operated by Air Canada and Air Canada 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 Virgin Australia’s code between Australia and Canada. No local traffic may be carried under Virgin Australia’s code between points in Canada, and between the United States of America and Canada.
  8. Air transportation using Air Canada’s code on flights operated by Virgin Australia between points in Australia, and between Australia and New Zealand shall not be sold separately and shall only be available to traffic carried on a continuous journey under Air Canada’s code between Canada and each of the following countries: Australia and New Zealand. No local traffic may be carried under Air Canada’s code between points in Australia, and between Australia and New Zealand.

Member(s)

Stephen Campbell
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