Decision No. 128-A-2007

March 19, 2007

File No. M4212/K45-3-1

Korean Air Lines Co. Ltd. (hereinafter Korean Air) has applied to the Canadian Transportation Agency (hereinafter the Agency) for the authority set out in the title. The application was received on January 15, 2007.

Under Licence No. 975147, Korean Air is authorized to operate a scheduled international service between Korea and Canada in accordance with the Agreement between the Government of Canada and the Government of the Republic of Korea for Air Services, signed on September 20, 1989 (hereinafter the Agreement).

The Agreement provides that the total capacity to be operated during the IATA summer seasons by the designated airline(s) of each Contracting Party using its own equipment shall not exceed a combined total of 2,000 seats per week in each direction.

Korean Air submits that the additional capacity is required to permit the use of B747-400 aircraft (383 seats) for service to Toronto three times per week, combined with the use of B777-200 aircraft (300 seats) for service to Vancouver three times per week, for a total of 2,049 seats per week in each direction.

Under the terms of the Agreement, the aeronautical authorities may approve temporary increases in capacity agreed between the designated airlines.

Air Canada was advised of the application and confirmed that it agreed to the increased capacity.

The Agency has reviewed and considered the application and the material filed in support thereof, and considers that the operation of the additional flights as agreed between the designated airlines would benefit consumers.

Accordingly, pursuant to section 77 of the Canada Transportation Act and as provided for in the Agreement, the Agency hereby authorizes Korean Air to provide additional capacity, by using a combination of B747 and B777 aircraft in the operation its regular scheduled service between Korea and Canada, for a total of 2,049 seats per week in each direction, from March 25 to October 27, 2007.

The authorization granted herein does not exempt Korean Air from the requirements of other legislative acts or regulations, including those of Transport Canada.

Members

• Raymon J. Kaduck
• Baljinder Gill