Decision No. 686-A-2006

December 13, 2006

File No. M4212/K45-3

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 November 30, 2006.

Under Licence No. 975147, Korean Air is authorized to operate a scheduled international service 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. 975147 states:

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

Condition No. 2 of No. 975147 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 the route Korea - Vancouver - Toronto - Montréal in both directions and to serve Brussels as an intermediate point. Thus, there is no provision permitting the operation of services in the manner proposed.

On December 4, 2006, Air Canada, the Canadian designated airline for service to Korea confirmed that it concurs with the request of Korean Air.

The Agency may grant temporary authority pursuant to subsection 78(2) of the Canada Transportation Act (hereinafter the CTA) for a service which is not permitted in a bilateral air transport agreement.

The Agency has reviewed and considered the application and the material filed in support thereof. The Agency finds that, considering the increased demand for fresh lobster, the operation of two flights via Halifax and Brussels for the purpose of carrying fresh live lobster from Halifax to Brussels and onward to Korea during the holiday season would benefit shippers and seafood producers.

Accordingly, the Agency, pursuant to subsection 78(2) of the CTA, hereby varies Conditions No. 1 and 2 of Licence No. 975147 to the extent necessary to permit Korean Air to operate its flights from Toronto to Seoul via Halifax and Brussels, including the exercise of fifth freedom rights between Halifax and Brussels, on December 20 and 27, 2006.

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

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

This Decision shall form part of Licence No. 975147 and shall remain affixed thereto as long as this Decision is in force.

Members

• Mary-Jane Bennett
• Guy Delisle