Canadian Transportation Agency has approved Air Tahiti Nui - American Airlines application

APPLICATION

Air Tahiti, on behalf of itself and American Airlines, has applied to the Canadian Transportation Agency (Agency) for:

1. extra-bilateral authority to permit it to provide its scheduled international service between French Polynesia and Vancouver, British Columbia, Canada via Los Angeles, California, United States of America;
2. approval to permit Air Tahiti to provide its scheduled international service between French Polynesia and Canada by selling transportation in its own name on flights operated by American Airlines between Los Angeles and Vancouver, for a period of summer 2017 to winter 2018.

Air Tahiti is licensed to operate, through code sharing, 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).

However, there is no provision in the Agreement allowing Air Tahiti to operate a service between French Polynesia and Vancouver via Los Angeles or for code‑sharing arrangements with third country carriers.

Therefore, Air Tahiti 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.; 1263343 Alberta Inc. carrying on business as EnerJet; and WestJet.

Air Canada filed an intervention in respect of the application.

POSITION OF THE PARTIES

Air Canada states that it has no objection to Air Tahiti's request, on the condition that Canadian carriers are granted reciprocal treatment by the aeronautical authorities of French Polynesia.

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 Tahiti to operateits scheduled international service between French Polynesia and Vancouver via Los Angeles through code-sharing on the flights of third country carriers.

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 Tahiti's licence to the extent necessary to permit it to provide its scheduled international service between French Polynesia and Vancouver via Los Angeles through code-sharing on the flights of third country carriers, for one year beginning on July 6, 2017.

Application under section 60 of the CTA and section 8.2 of the ATR

The Agency has considered the application and the material in support and is satisfied that it meets the requirements of section 8.2 of the ATR.

With respect to the duration of the approval requested, in light of the provisions of the Agreement, the Agency considers one year to be appropriate.

Accordingly, the Agency, pursuant to paragraph 60(1)(b) of the CTA and section 8.2 of the ATR, approves the use by Air Tahiti of aircraft with flight crew provided by American Airlines, and the provision by American Airlines of such aircraft and flight crew to Air Tahiti, to permit Air Tahiti to provide its scheduled international service between French Polynesia and Canada by selling transportation in its own name on flights operated by American Airlines between Los Angeles and Vancouver, for one year beginning on July 6, 2017.

This approval is subject to the following conditions:

1. Air Tahiti shall continue to hold the valid licence authority.
2. Air Tahiti 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. Air Tahiti and American Airlines 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 Tahiti shall continue to comply with the public disclosure requirements set out in section 8.5 of the ATR.
6. Air Tahiti and American Airlines 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 Air Tahiti's code on flights operated by American Airlines between Los Angeles and Vancouver shall not be sold separately and shall only be available to traffic carried on a continuous journey under Air Tahiti's code between French Polynesia and Canada. No local traffic may be carried under Air Tahiti's code between Los Angeles and Vancouver.

In all other respects, the service shall be operated in accordance with the Agreement.