Order No. 2008-A-539

December 9, 2008

File No. M4116/08-03142

On March 24, 2008, Airline Tariff Publishing Company, Agent (ATPCo), on behalf of Koninklijke Luchtvaart Maatschappij, N.V. (K.L.M. Royal Dutch Airlines), filed with the Canadian Transportation Agency (the Agency) a proposed amendment to K.L.M. Royal Dutch Airlines' International Passenger Rules and Fares Tariff No. KL-2, NTA(A) No. 311 (Tariff), for effect May 9, 2008, to add a new paragraph titled Note 2 in Rule 70(A) related to baggage liability in situations where the passenger has checked in late.

In Letter No. LET-A-83-2008, the Agency provided K.L.M. Royal Dutch Airlines with the opportunity to show cause why the Agency should not, pursuant to paragraph 113(a) of the Air Transportation Regulations, SOR/88-58, as amended (the ATR), disallow the aforementioned tariff provision as being unjust and unreasonable, thereby contravening subsection 111(1) of the ATR.

Pending receipt of K.L.M. Royal Dutch Airlines' reply and completion of the Agency's investigation, the Agency suspended the proposed Note 2 in Rule 70(A) of the carrier's Tariff.

ATPCo, on behalf of K.L.M. Royal Dutch Airlines, filed an amendment to the Tariff cancelling Note 2 in Rule 70(A), per the Agency's direction. Northwest Airlines Inc., on behalf of K.L.M. Royal Dutch Airlines, subsequently filed a response to the Agency's letter, and on October 30, 2008, advised the Agency that K.L.M. Royal Dutch Airlines would no longer pursue its amendment to Rule 70(A).

As K.L.M. Royal Dutch Airlines is not pursuing this amendment of its Tariff, the Agency does not contemplate any further action in this matter.