Library:
No Jurisdiction over Foreign Carrier
Published in the March 2009 issue of Transportation Notes - View Article
The Canadian Transportation Agency (“the Agency”) recently clarified that its jurisdiction does not extend to a ticket governed by Aeroplan terms and conditions on a segment operated by a carrier wholly outside of Canada under the terms of an interline ticket.
The passenger purchased a ticket through Aeroplan for business class travel with several Star Alliance carriers, including Air Canada and Spanair, from Toronto through several European cities, returning through New York to Toronto. The passenger was unhappy that Spanair allegedly downgraded him on the Spanair flight from Ibiza to Madrid, Spain from business class to “Avant” class (the difference being the middle seat is empty in business class).
The passenger filed a complaint with the Agency against Air Canada for the carrier’s refusal to compensate him for Spanair’s alleged failure. He argued that Air Canada’s international tariff covered all segments of his ticket and that it contravened several sections of the ATR. Specifically, he argued that Air Canada had failed to set out its terms and conditions of carriage concerning substitution of a different class of service in its international tariff, that it did not properly apply the terms and conditions in its international tariff, that the terms and conditions regarding involuntary downgrading and involuntary refunds are unjust and unreasonable, that Air Canada discriminated against him by reneging on a promise to compensate him for the downgrade and that it failed to make its international tariff available to him for inspection.
Air Canada submitted that the ticket was purchased through an Aeroplan “Star Alliance Rewards” ticket that consisted of various flights with different Star Alliance partners; thus Aeroplan’s terms and conditions applied to the ticket and Air Canada’s international tariff only applied to the segment operated by Air Canada (New York to Toronto). Air Canada submitted that the passenger failed to demonstrate that its rules are unjust or unreasonable or that it engaged in unjust discrimination and that, in any case, its international tariff is not applicable to the complaint.
In dismissing the passenger’s argument that Air Canada is responsible for the actions of Aeroplan, the Agency reviewed detailed information about the history and corporate structure of Aeroplan and found that Aeroplan is indeed an independent entity. It found that the carriage of the passenger was by means of an interline ticket, as opposed to an Air Canada online or codeshare ticket, obtained through Aeroplan. As such, the transportation complained of was governed by Aeroplan’s terms and conditions and the tariffs of the various carriers on their respective legs of the journey. The segment at issue was operated by Spanair and not by Air Canada, and at the time of travel, Spanair was not a licensee under the Canada Transportation Act. Accordingly, the Agency did not have jurisdiction to order relief against Spanair, even if the passenger had complained against it. The Agency also held that as Aeroplan is neither a licensee nor an air carrier for the purposes of the CTA and the ATR, it does not fall under the jurisdiction of the Agency. The Agency also held that Air Canada made its tariff available to the passenger through its website and at the airport.
Kouznetchik v. Air Canada.,
Decision No. 82-C-A-2009 (March 10, 2009)