Determination No. A-2019-132
APPLICATION by Société Air France carrying on business as Air France (Air France) pursuant to subsection 78(2) and 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).
Air France has applied to the Canadian Transportation Agency (Agency) for extra‑bilateral authority to permit it to provide a scheduled international service between French Polynesia and Canada, via points in and within the United States of America, by selling transportation in its own name on flights operated by Delta Air Lines, Inc. carrying on business as Delta Air Lines, as Delta and as Delta Shuttle (Delta Air Lines); Endeavor Air, Inc., ExpressJet Airlines, Inc., Compass Airlines, LLC and SkyWest Airlines, Inc., all carrying on business as, among others, Delta Connection (Delta Connection); and WestJet, for an indefinite period or such period as may be authorized by the Agency.
Air France 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 French Republic, signed on June 15, 1976, as amended (Agreement).
There is no provision in the Agreement allowing Air France to operate a service between French Polynesia and Canada via intermediate points in the United States of America.
Therefore, Air France requires extra‑bilateral authority, and its licence must be varied to allow for the provision of services not permitted under the Agreement.
When assessing extra-bilateral applications related to capacity and traffic rights, the Agency must apply a direction pursuant to paragraph 76(1)(b) of the CTA issued by the Minister of Transport on February 22, 2019. The intent of the Direction is to ensure that the capacity or traffic rights established in Canada's air transport agreements, conventions or arrangements will not be altered or supplemented without the concurrence of the Minister of Transport.
In accordance with the direction, the Minister of Transport has concurred that the Agency may proceed with the extra-bilateral application in this case.
The Agency gave notice of the application to parties that may have an interest, namely Air Canada also carrying on business as Air Canada rouge and as Air Canada Cargo (Air Canada); Air Transat A.T. Inc. carrying on business as Air Transat; Sunwing Airlines Inc.; 1263343 Alberta Inc. carrying on business as EnerJet; and WestJet.
No intervention was filed in respect of the application.
ANALYSIS AND FINDINGS
Authority under subsection 78(2) of the CTA
The Agency may grant temporary authority pursuant to subsection 78(2) of the CTA for a service that is not permitted in a bilateral air transport agreement or arrangement.
The Agency has considered the application and the material in support and, in the expectation that favourable consideration will be given by the aeronautical authorities of France and French Polynesia to similar requests by designated Canadian carriers, finds it appropriate to permit Air France to operate an international service between French Polynesia and Canada via intermediate points in the United States of America.
With respect to the duration of the authority requested, the Agency considers one year to be appropriate.
Accordingly, the Agency, pursuant to subsection 78(2) of the CTA, varies Air France's licence to the extent necessary to permit it to provide a scheduled international service between French Polynesia and Canada via points in the United States of America, through code sharing, for a period of one year beginning on the date of this Determination.
Application under section 60 of the CTA and section 8.2 of the ATR
With respect to the request for approval to permit Air France to provide the scheduled international service between French Polynesia and Canada by selling transportation in its own name on flights operated by Delta Air Lines, Delta Connection and WestJet via points in the United States of America, the Agency finds that the approvals previously granted by Decision No. 266-A-2016, Decision No. 42‑A-2015, Decision No. 214-A-2010, Decision No. 211-A-2010 and Decision No. 205-A-2010 would apply to these flights and that no further authorization pursuant to section 60 of the CTA and section 8.2 of the ATR is required.
In all other respects, the service shall be operated in accordance with the Agreement.