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![]() ![]() CTA Home : Rulings : Decisions : 2006 Decision No. 613-C-A-2006November 3, 2006
File Nos. M4370/06-50404
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Agent at Special Services counter - (@ 20 min./passenger - $37/hour, inc. benefits): |
$12.50 |
Counter/equipment in special area: |
$ 1.00 |
Forms, stickers, etc. |
$ 1.00 |
Station Attendant/baggage agent to handle firearms |
|
|
$25.00 |
|
$12.50 |
TOTAL |
$52.00 |
[26] Air Canada submits that the handling of firearms in the United Kingdom had to be given to an outside firm, which charges GBP30 per movement for each case containing firearms. Air Canada indicates that a movement is defined as one passenger travelling with firearms per flight segment.
[27] With respect to the reduction of the handling charge from CAD$65/US$65 to CAD$50/US$50, Air Canada submits that the initial charge of CAD$65/US$65 was in line with the cost assessed by the outside vendor in the United Kingdom, but a revision of the average costs levied at Canadian and international stations led to the decision to reduce the charge.
[28] With respect to the fact that the Canadian and U.S. values of the handling charge are not reflective of the current exchange rate, Air Canada submits that at the time the charge was set, the Canadian Dollar was unusually strong against the U.S. Dollar, and the carrier wanted to examine the trend in the rate of exchange before reviewing all of the charges that it displays in both rates. Air Canada submits that it intends to review the currency exchange rate for the handling charge, as well as other charges.
APPLICABLE LEGISLATIVE AND REGULATORY PROVISIONS
[29] The Agency's jurisdiction over complaints concerning domestic tariffs is set out in sections 67, 67.1 and 67.2 of the CTA.
[30] Subsection 67(3) of the CTA provides:
The holder of a domestic licence shall not apply any fare, rate, charge or term or condition of carriage applicable to the domestic service it offers unless the fare, rate, charge, term or condition is set out in a tariff that has been published or displayed under subsection (1) and is in effect.
[31] Section 67.1 of the CTA provides:
If, on complaint in writing to the Agency by any person or on its own motion, the Agency finds that, contrary to subsection 67(3), the holder of a domestic licence has applied a fare, rate, charge or term or condition of carriage applicable to the domestic service it offers that is not set out in its tariffs, the Agency may order the licensee to
(a) apply a fare, rate, charge or term or condition of carriage that is set out in its tariffs;
(b) compensate any person adversely affected for any expenses they incurred as a result of the licensee's failure to apply a fare, rate or term or condition of carriage that was set out in its tariffs; and
(c) take any appropriate corrective measures.
[32] Subsection 67.2(1) of the CTA provides:
If, on complaint in writing to the Agency by any person, the Agency finds that the holder of a domestic licence has applied terms or conditions of carriage applicable to the domestic service it offers that are unreasonable or unduly discriminatory, the Agency may suspend or disallow those terms or conditions and substitute other terms or conditions in their place.
[33] The Agency's jurisdiction over the present matter in respect of international carriage is set out in subsection 110(4) and sections 111 and 113 of the ATR.
[34] Subsection 110(4) of the ATR provides:
Where a tariff is filed containing the date of publication and the effective date and is consistent with these Regulations and any orders of the Agency, the tolls and terms and conditions of carriage in the tariff shall, unless they are rejected, disallowed or suspended by the Agency or unless they are replaced by a new tariff, take effect on the date stated in the tariff, and the air carrier shall on and after that date charge the tolls and apply the terms and conditions of carriage specified in the tariff.
[35] Section 111 of the ATR provides:
(1) All tolls and terms and conditions of carriage, including free and reduced rate transportation, that are established by an air carrier shall be just and reasonable and shall, under substantially similar circumstances and conditions and with respect to all traffic of the same description, be applied equally to all that traffic.
(2) No air carrier shall, in respect of tolls or the terms and conditions of carriage,
(a) make any unjust discrimination against any person or other air carrier;
(b) give any undue or unreasonable preference or advantage to or in favour of any person or other air carrier in any respect whatever; or
(c) subject any person or other air carrier or any description of traffic to any undue or unreasonable prejudice or disadvantage in any respect whatever.
(3) The Agency may determine whether traffic is to be, is or has been carried under substantially similar circumstances and conditions and whether, in any case, there is or has been unjust discrimination or undue or unreasonable preference or advantage, or prejudice or disadvantage, within the meaning of this section, or whether in any case the air carrier has complied with the provisions of this section or section 110.
[36] Furthermore, if the Agency finds that the air carrier has contravened section 111 of the ATR, the Agency may, pursuant to section 113 of the ATR:
(a) suspend any tariff or portion of a tariff that appears not to conform with subsections 110(3) to (5) or section 111 or 112, or disallow any tariff or portion of a tariff that does not conform with any of those provisions; and
(b) establish and substitute another tariff or portion thereof for any tariff or portion thereof disallowed under paragraph (a).
The applicable provisions of Air Canada's tariffs
[37] Rule 195 (Conditions and charges for acceptance of special items) of the Air Canada tariffs governing travel between points in Canada, and between points in Canada and points in the United States of America, namely the Canadian Domestic General Rules Tariff and the Canadian General Rules Tariff, respectively, in effect when the complaints were filed, provide in part as follows:
(S) SPORTING EQUIPMENT
(5) Shooting Equipment (Sporting Firearms)
Items of shooting equipment will be accepted only as checked baggage subject to the conditions and charges specified below. (For the purpose of this provision one item of shooting equipment is defined as (1) one rifle case containing not more than two rifles, with or without scopes, 10 lbs. of ammunition, shooting mat, noise suppressors, and small rifle tools; (2) two shotguns and two shotgun cases and 10 lbs. of ammunition; or (3) one pistol case containing not more than five pistols, noise suppressors, one pistol telescope, and small pistol tools.)
(a) Conditions of Acceptance
(i) Firearms must be unloaded and placed in a suitable container.
(ii) Advance arrangements must be made.
(iii) Small arms ammunition under 11 lbs. must be packed in the manufacturers original package. Ammunition with explosive or incendiary projectiles will not be accepted. The ammunition shall be packaged in a strong outside container made of wood, metal or fiberboard. Ammunition inside container must be protected against shock and secured against movement.
(b) Charges
(1) Firearms will be included in determining the free baggage allowance, and when in excess, each item will be subject to the excess baggage charge for a single piece, whether or not presented as a single piece.
(2) In addition to the charges mentioned in paragraph (b)(1), there will be an additional handling charge of CAD$50/US$50 per item.
[38] Rule 117 (Baggage Regulations) and Rule 118 (Baggage Regulations) of the Air Canada tariff governing travel between points in Canada and points outside Canada, except in the United States of America, namely the International Passenger Rules and Fares Tariff, in effect when the complaints were filed, provide in part that:
Rule 117 BAGGAGE REGULATIONS
(O) FREE BAGGAGE ALLOWANCE
...
(4) (a) The following articles irrespective of their actual dimensions may be considered as a piece of baggage at 62 inches (158 cm):
....
(ix) sporting firearms consisting of not more than one rifle case containing not more than two rifles, 5 kgs. (11 lbs.) of ammunition, one shooting mat, noise suppressor and small rifle tools, or two shotguns and two shotgun cases, or one pistol case containing not more than five pistols, 5 kgs. (11 lbs.) of ammunition, noise suppressors, one pistol telescope and small pistol tools. A handling fee of CAD$50/US$50D per item will be charged when traveling with firearms.
Rule 118 BAGGAGE REGULATIONS
(D) DANGEROUS, DAMAGEABLE OR UNSUITABLE BAGGAGE
Passengers must not include in checked baggage items which are likely to endanger the aircraft, persons or property, which are likely to be damaged by air carriage or which are unsuitably packed or which items by their particular nature (Fragile, Perishable, Valuable) the carrier does not agree to carry. If the weight, size or character of the baggage renders it unsuitable for carriage on the aircraft, carrier may, prior to, or any stage of the journey, refuse to carry the baggage or any portion thereof. The following items will be carried as baggage only after prior consent of and arrangement with the carrier, with exceptions to the acceptance of certain items clearly indicated:
(1) Firearms of any description, except those for sport purposes will not be carried when accompanying the passenger. Firearms for sport purposes will be carried when accompanying the passenger, provided that entry permits are in the possession of the passenger for the country or countries of transit and destination, and provided that such firearms are disassembled or packed in a suitable case designed for the shipping of such items: (Does not include standard carrying case or any container provided by the carrier). A handling fee of CAD$50/US$50 per item will be charged when travelling with firearms.
ANALYSIS AND FINDINGS
[39] In making its findings, the Agency has considered all of the evidence submitted by the parties during the pleadings.
[40] With respect to the definition of firearms as "dangerous goods", the Agency finds that this is not relevant to its consideration as to whether the terms and conditions of carriage set out in Air Canada's tariffs are unreasonable or unduly or unjustly discriminatory.
Has Air Canada applied terms and conditions governing the carriage of firearms in a manner inconsistent with subsection 67(3) of the CTA, with respect to domestic services, and subsection 110(4) of the ATR, with respect to international services?
[41] Subsection 67(3) of the CTA provides:
The holder of a domestic licence shall not apply any fare, rate, charge or term or condition of carriage applicable to the domestic service it offers unless the fare, rate, charge, term or condition is set out in a tariff that has been published or displayed under subsection (1) and is in effect.
[42] Subsection 110(4) of the ATR provides:
Where a tariff is filed containing the date of publication and the effective date and is consistent with these Regulations and any orders of the Agency, the tolls and terms and conditions of carriage in the tariff shall, unless they are rejected, disallowed or suspended by the Agency or unless they are replaced by a new tariff, take effect on the date stated in the tariff, and the air carrier shall on and after that date charge the tolls and apply the terms and conditions of carriage specified in the tariff.
[43] The Agency notes that the evidence on file indicates that certain requirements for the carriage of firearms applied by Air Canada, specifically, the requirement that firearms be inhibited from being fired by using a secure, locking device mechanism on the weapon, commonly called the "trigger lock", do not appear in the carrier's tariffs, contrary to subsection 67(3) of the CTA and subsection 110(4) of the ATR.
Are Air Canada's terms and conditions governing the handling of firearms "unreasonable" within the meaning of subsection 67.2(1) of the CTA and section 111 of the ATR?
[44] The Agency notes that while the terminology used in subsection 67.2(1) of the CTA and section 111 of the ATR is not identical, it broadly refers to the issue of unreasonable or undue discrimination. Therefore, the words "unreasonable or unduly discriminatory" used in subsection 67.2(1) of the CTA encompass and capture the meaning of the terms used in section 111 of the ATR.
[45] In its Decision No. 666-C-A-2001 dated December 24, 2001 relating to a complaint filed by Del Anderson, the Agency had an opportunity to examine the scope of the word "unreasonable" found in subsection 67.2(1) of the CTA.
[46] Further, in Decision No. 746-C-A-2005 dated December 23, 2005 relating to a complaint filed by Robert Black, the Agency stated that in determining whether a term or condition of carriage applied by a carrier is "unreasonable" within the meaning of subsection 67.2(1) of the CTA and section 111 of the ATR, the Agency must ensure that it does not interpret the provision in such a way that impairs or jeopardizes the ability of the travelling public to efficiently use the recourse put in place by Parliament to protect it against the unilateral setting of terms and conditions of carriage by air carriers. The Agency is of the opinion that the same applies in this case.
[47] Conversely, the CTA dictates that the Agency must also take into account:
1. the operational and commercial obligations of the particular air carrier that is the subject of the complaint;
2. the other consumer protection provisions found under Part II of the CTA which compel air carriers to publish, display or make available for public inspection tariffs that contain the information required by the ATR and only apply the terms and conditions of carriage set out in those tariffs; and
3. the fact that air carriers are required to establish and apply terms and conditions of carriage designed to apply collectively to all passengers as opposed to one particular passenger.
[48] The Agency is therefore of the opinion that in order to determine whether a term or condition of carriage applied by a carrier is "unreasonable" within the meaning of subsection 67.2(1) of the CTA and section 111 of the ATR, a balance must be struck between the rights of the passengers to be subject to reasonable terms and conditions of carriage, and the particular air carrier's statutory, commercial and operational obligations.
[49] The Agency is of the opinion that, generally, air carriers should have the flexibility to establish their terms and conditions of carriage and to price their services as they see fit, subject to legislative or regulatory constraints.
[50] Further, when a complaint is filed with the Agency, the complainant has the burden of providing evidence to the Agency that the air carrier has applied a term or condition of carriage that is "unreasonable or unduly discriminatory" within the meaning of subsection 67.2(1) of the CTA and section 111 of the ATR.
[51] In light of the submissions filed by Air Canada, the Agency accepts that the carriage of firearms requires additional and special handling procedures that are unique to such carriage, and that these procedures are presumed to be reasonable given that such procedures flow from legislative requirements, i.e., the Firearms Act and the Canadian Aviation Security Regulations. The procedures implemented by Air Canada require, among other matters, that firearms be handled at a "Special Services" counter, that the firearms be inspected to ensure that they contain no ammunition, that certain forms be completed, that certain parties be notified that firearms are being carried, that firearms cannot be loaded with regular baggage, and that logs and records relating to the carriage of firearms must be maintained.
[52] The Agency has examined the justification filed by Air Canada in support of its handling charge of CAD$50/US$50, and finds such justification to be convincing.
[53] The Agency also finds that the complainants have failed to present any significant evidence that demonstrates that a balance has not been struck between the rights of passengers to be subject to reasonable terms and conditions of carriage and Air Canada's statutory, commercial and operational obligations. Given the existence of the legislative and regulatory requirements favouring the establishment of the terms and conditions applied by Air Canada, and the complainants' failure to discharge the burden of proof that Air Canada's terms and conditions governing the carriage of firearms contained in its tariffs are unreasonable, the Agency finds that such terms and conditions are not "unreasonable" within the meaning of subsection 67.2(1) of the CTA and section 111 of the ATR.
[54] In light of the foregoing, the Agency finds that Air Canada's terms and conditions governing the handling of firearms are not "unreasonable" within the meaning of subsection 67.2(1) of the CTA and section 111 of the ATR.
[55] With respect to the fact that the Canadian and U.S. values of the handling charge are not reflective of the current exchange rate, the Agency notes Air Canada's stated intention to review the currency exchange of the firearms handling charge, as well as other charges. The Agency will monitor this particular issue.
Are Air Canada's terms and conditions governing the handling of firearms contained in its tariffs "unduly discriminatory" within the meaning of subsection 67.2(1) of the CTA and or "unjustly discriminatory" within the meaning of section 111 of the ATR?
[56] As with the word "unreasonable", the phrases "unduly discriminatory" and "unjustly discriminatory" are not defined in the CTA or the ATR. In its Decision Nos. 666-C-A-2001 and 746-C-A-2005, the Agency also had an opportunity to examine the scope of the words "unduly discriminatory" found in subsection 67.2(1) of the CTA and "unjustly discriminatory" found in section 111 of the ATR.
[57] In those Decisions, the Agency stated that, in determining whether a term or condition of carriage applied by a carrier is "unduly discriminatory" within the meaning of subsection 67.2(1) of the CTA or "unjustly discriminatory" within the meaning of section 111 of the ATR, it must adopt a contextual approach which balances the rights of the travelling public not to be subject to terms and conditions of carriage that are discriminatory, with the statutory, operational and commercial obligations of air carriers operating in Canada. This position is also in harmony with the national transportation policy found in section 5 of the CTA. The Agency is of the opinion that the same applies in this case.
[58] The first question for the Agency to consider in determining whether a term or condition of carriage applied by an air carrier is "unduly discriminatory" within the meaning of subsection 67.2(1) of the CTA, or "unjustly discriminatory" within the meaning of section 111 of the ATR, is whether the term or condition of carriage is discriminatory.
[59] A term or condition would be discriminatory if it singled out a particular category of traffic for different treatment for reasons that could not be justified. In the present case, given that Air Canada's terms and conditions governing the handling of firearms apply equally to all passengers carrying firearms, the Agency finds that there is no evidence before it to suggest that such provisions are discriminatory or that the provisions have been applied in a discriminatory manner.
[60] Given the Agency's finding that Air Canada's terms and conditions governing the handling of firearms are not "discriminatory" within the meaning of subsection 67.2(1) of the CTA and section 111 of the ATR, the Agency need not examine the question of whether such provisions are "unduly discriminatory" or "unjustly discriminatory".
CONCLUSION
[61] In light of the foregoing, the Agency hereby:
1. orders Air Canada, pursuant to section 26 of the CTA, to amend its tariffs, within thirty (30) days from the date of this Decision, to include all of the terms and conditions governing Air Canada's carriage of firearms, thereby respecting subsection 67(3) of the CTA and subsection 110(4) of the ATR.
2. dismisses the complaints. In view of this dismissal, the Agency hereby rescinds the suspension of the tariff provisions relating to the Air Canada charge for the handling of firearms, as set out in Decision No. LET-C-A-147-2006 dated June 15, 2006.
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