TRANSPORTATION |
Northwest Airlines, Inc. v. Canada (Transportation Agency)
A-407-03
2004 FCA 238, Sharlow J.A.
23/6/04
17 pp.
Appeal under Canada Transportation Act, s. 41 from decision of respondent that appellants wrong to refuse to honour tickets purchased from travel agency at discount price--Travel agency agent for appellants by operation of rules of International Air Transport Association (IATA)-- Authorized to sell tickets only at prices set out in tariffs filed by appellants with respondent, and remit sales proceeds to IATA, which then pays appellants--Apparently travel agency sold, issued tickets, kept proceeds--Tickets appeared valid-- Criminal charges laid--Except in one case, no evidence that those who purchased tickets knew, could reasonably have been expected to know, of problem with purchase--Once appellants realized tickets sold for less than tariff amount, refused to honour tickets, issued replacement tickets at "discounted net fare", less than tariff rate--After receiving complaints about appellants' refusal to honour tickets, Agency required appellants to show cause why Agency should not find that they failed to comply with their tariff rules (rr. 100NW, 65) contrary to Air Transportation Regulations, s. 110(4)--Appellants argued ticket holders had not paid "applicable fare" (r. 65), and tickets "improperly issued" because "applicable fare" not paid (r. 100NW)--Agency concluded "applicable fare" ambiguous, as used to refer to different things--Agency interpreted "applicable fare" to mean amounts charged by travel agency or amounts paid by ticket holders--Because no evidence of prices paid, appellants precluded from relying on rr. 100NW, 65, failed to show cause--By virtue of limited scope of appeals under Act, s. 41, Court cannot interfere unless error of law or jurisdiction-- Questions of tariff interpretation have enough of a legal component to bring them within scope of appellate review in s. 41--Standard of review reasonableness based on fact Agency specialized, expert tribunal, overseeing complex array of transportation matters, and interpretation of phrase in tariff engaging to considerable extent, this specialized knowledge and expertise--Issue whether reasonable for Agency to conclude "applicable fare" in r. 65 not tariff rate, but amount charged or paid for ticket--Because evidence appellants not consistently operating in such way that authorized ticket prices always in tariff (e.g. participated in sale of tickets for "net fares" or discounted fares, and no evidence tariffs amended accordingly), "applicable fare" not meaning only tariff price-- Risk of loss from fraudulent travel agents thus borne by carrier (i.e. appellants), not passengers-- Agency's interpretation more reasonable than appellants'--Appeal dismissed-- Canada Transportation Act, S.C. 1996, c. 10, s. 41--Air Transportation Regulations, SOR/88-58, s. 110(4) (as am. by SOR/96-335, s. 56).