Determination No. A-2018-160

July 12, 2018

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).

Case number: 
18-03391

APPLICATION

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 scheduled international services in accordance with the Agreement on Air Transport between Canada and the European Community and its Member States, signed on December 18, 2009 (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.

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.; WestJet; and 1263343 Alberta Inc. carrying on business as EnerJet.

Air Canada filed an intervention in respect of the application, and Air France filed a reply.

POSITIONS OF THE PARTIES

Air Canada states that it has no objection to Air France's request, on the condition that Canadian carriers are granted reciprocal treatment by the aeronautical authorities of French Polynesia, which ensures that French carriers do not benefit from extra-bilateral approvals to code share on third country carriers, while Canadian carriers are not able to do so.

Air France concurs with Air Canada's comments.

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.

Member(s)

J. Mark MacKeigan
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