CANADIAN REGULATORS CONSIDER EXEMPTIONS FOR IATA MEMBERS
August 14, 2025
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The Canadian Transportation Agency (“CTA”) continues to consult on requested exemptions from filing and publication requirements for tolls set out in air carrier tariffs. By way of background, the International Air Transportation Association (“IATA”), on behalf of its member airlines that serve the Canadian market, requested a permanent exemption from Canadian regulations related to the filing of fares, rates, and tolls because IATA asserts that the current system impedes carriers’ ability to implement continuous and dynamic pricing to the detriment of the carriers and the traveling public. If granted, the exemption would significantly ease the administrative burden on carriers with respect to having to file updated passenger fares, including ancillaries, and allow them to make real time pricing adjustments to reflect market conditions (i.e., continuous pricing). IATA also requested an exemption from the requirements to file cargo tariffs and a “blanket exemption” from the application of Section 118 of the Air Transportation Regulations which requires charterers to file rates and tolls, even if those terms were negotiated confidentially by private parties.
IATA also proposed that carriers maintain historical records of PNRs, cargo rates, and terms and conditions associated with such tolls, for a period of 3 years to ensure that such information is available should CTA need to investigate and adjudicate passenger complaints related to pricing and ancillary fees. The purpose is to ensure that CTA will have access to accurate records about the prices that were charged at any given time because, assuming the exemptions are granted, carriers could adjust pricing in real time and would not be bound by the 26 different traditional fare classes per the current tariff system. We will closely follow these consultations and advise on potential changes to current legal requirements.
If interested, comments to IATA’s application must be submitted by Thursday, July 24, 2025. All submissions are public and will be posted on the CTA’s website (available here).
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