Determination No. A-2017-103

July 13, 2017

APPLICATION by WestJet, on behalf of itself and Nihon Koku Kabushiki Gaisha (Japan Airlines Co., Ltd.) carrying on business as Japan Airlines and JAL (Japan Airlines), 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: 
17-03384

WestJet, on behalf of itself and Japan Airlines, has applied to the Canadian Transportation Agency (Agency) for an approval to permit Japan Airlines to provide its scheduled international service between Japan and Canada by selling transportation in its own name on flights operated by WestJet between points in Canada and between Canada and the United States of America, for as long a period as may be authorized by the Agency.

WestJet 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 WestJet from the application of subsection 8.2(2) of the ATR.

Japan Airlines is licensed to operate a scheduled international service in accordance with the Agreement between Canada and Japan for Air Service signed on January 12, 1955, as amended.

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 Japan Airlines of aircraft with flight crew provided by WestJet, and the provision by WestJet of such aircraft and flight crew to Japan Airlines, to permit Japan Airlines to provide its scheduled international service on licensed routes between Japan and Canada by selling transportation in its own name on flights operated by WestJet between points in Canada and between Canada and the United States of America, beginning on August 18, 2017 for an indefinite period.

This approval is subject to the following conditions:

  1. Japan Airlines shall continue to hold the valid licence authority.
  2. Japan 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 WestJet 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. Japan Airlines shall continue to comply with the public disclosure requirements set out in section 8.5 of the ATR.
  6. Japan Airlines and WestJet 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 Japan Airlines' code on flights operated by WestJet between points in Canada and between Canada and the United States of America shall not be sold separately and shall only be available to traffic carried on a continuous journey under Japan Airlines' code between Japan and Canada. No local traffic may be carried under Japan Airlines' code between points in Canada and between Canada and the United States of America.

Member(s)

Sam Barone
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