Decision No. 622-A-2005

October 17, 2005

APPLICATION by Asiana Airlines Inc. carrying on business as Asiana Airlines for extra-bilateral authority pursuant to subsection 78(2) of the Canada Transportation Act, S.C., 1996, c. 10, to operate three weekly all-cargo flights between Seoul, Republic of Korea and Calgary, Alberta, Canada and to exercise fifth freedom traffic rights at the intermediate point Chicago, Illinois, United States of America, from October 30, 2005 to March 25, 2006.

File No. M4212/A973-3-1

Asiana Airlines Inc. carrying on business as Asiana Airlines (hereinafter Asiana) has applied to the Canadian Transportation Agency (hereinafter the Agency) for the authority set out in the title. The application was received on September 19, 2005.

The Agency notes that this application is for the renewal of the authority granted by Decision No. 168-A-2005 dated March 24, 2005.

Under Licence No. 030130, Asiana is authorized to operate a scheduled international service between the Republic of 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).

Condition No. 1 of Licence No. 030130 states:

The Licensee is authorized to operate the route(s) set out in the Agreement.

Condition No. 2 of Licence No. 030130 states:

The operation of the scheduled international service authorized herein shall be conducted subject to the provisions of the Agreement and to any applicable arrangements as may be agreed to between Canada and the Republic of Korea.

Under the terms of the Agreement, designated airlines of the Republic of Korea are authorized to operate up to two DC-8 freighters or one B-747 freighter flight per week between the Republic of Korea and Canada, and to serve Chicago as an intermediate point with in-transit and stopover rights but without fifth freedom traffic rights.

As the proposed service is not provided for in the Agreement and requires extra-bilateral authority, notice of the application was given to Canadian air carriers operating large aircraft and to the Calgary Airport Authority by Decision No. LET-A-259-2005 dated September 22, 2005. No objections were received. An intervention in support of the application was submitted by the Calgary Airport Authority.

The Agency may grant temporary authority pursuant to subsection 78(2) of the Canada Transportation Act (hereinafter the CTA), for an air service that is not permitted in an agreement or arrangement relating to civil aviation to which Canada is a party.

The Agency has reviewed and considered the application and the material filed in support thereof and is satisfied that extra-bilateral authority to operate three all-cargo flights per week between Seoul and Calgary and to exercise fifth freedom traffic rights between Chicago and Calgary would be beneficial to shippers and regional economic development.

Accordingly, the Agency, pursuant to subsection 78(2) of the CTA, hereby amends Condition Nos. 1 and 2 of Licence No. 030130 to the extent necessary to allow Asiana to operate three all-cargo flights per week between Seoul and Calgary and for Asiana to exercise fifth freedom traffic rights between Chicago and Calgary, from October 30, 2005 to March 25, 2006 subject to the following conditions:

Asiana is required to file with the Agency thirty (30) days after the end of each month statistics showing, on a flight by flight basis:

1. For cargo uplifted at Calgary: flight number, date, the weight of cargo carried by true origin and destination, the type and weight of oversized cargo, and flight totals; and
2. For cargo offloaded at Calgary: flight number, date, the weight of cargo carried by origin and true destination, the type and weight of oversized cargo, and flight totals.

In all other respects, the services authorized herein shall be operated in accordance with the Agreement.

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

This Decision shall form part of Licence No. 030130 and shall remain affixed thereto as long as the said Decision is in force.