Malaysia

1. Date of Agreement

Legal Title:

Agreement between the Government of Canada and the Government of Malaysia on Air Transport

January 18, 1996

In force

2. Other Instruments

May 26, 1995

Memorandum of Understanding (Confidential - New agreement, provisional application).

October 31, 1995

Exchange of Notes (Malaysia designates Malaysian Airline System Berhad, carrying on business as Malaysia Airlines).

September 17, 2000

Designation of Air Canada.

3. Characterization of Bilateral Agreement

A. Grant of Rights:

As specified in the Annex.

B. Designation:

Multiple, Air Canada and Malaysia Airlines.

C. Tariffs:

Single disapproval.

D. Capacity:

Pre-determination.

4. Routes and Associated Rights

1. Pursuant to Article XI, the airline(s) designated by Malaysia shall be entitled to operate a total of two flights per week in each direction with own equipment of any type.

2. No traffic may be taken on board at the point in Column C to be set down at the point in Column B and vice-versa.

3. The intermediate point may be omitted on any or all flights provided that all services originate or terminate in Malaysia.

4. In transit rights shall be available at Taipei only.

5. In providing and holding out transportation on its licensed routings, a designated airline of Malaysia may enter into cooperative arrangements for the purpose of blocking space and selling transportation under its own code on the flights of the designated airline of Canada, subject to the regulatory requirements normally applied by aeronautical authorities to such arrangements.

6. Notwithstanding note 1 above, pursuant to the cooperative arrangement between a designated airline of each country, the designated airline of Malaysia shall be entitled to block-space and code-share on up to seven flights per week in each direction on the agreed routes. The capacity made available under such an arrangement to the designated airline of Malaysia for the transportation of traffic between its home country and an intermediate point in a third country may be held out under its own code or, at its option, under the code of the airline of that third country.

7. Additional capacity may be agreed to in conformity with the provisions of Article XI.

1. Pursuant to Article XI, the airline(s) designated by Canada shall be entitled to operate a total of two flights per week in each direction with own equipment of any type.

2. No traffic may be taken on board at the point in Column C to be set down at the point in Column B and vice-versa.

3. The intermediate point may be omitted on any or all flights provided that all services originate or terminate in Canada.

4. In transit rights shall be available at Taipei only.

5. In providing and holding out transportation on its licensed routings, a designated airline of Canada may enter into cooperative arrangements for the purpose of blocking space and selling transportation under its own code on the flights of the designated airline of Malaysia, subject to the regulatory requirements normally applied by aeronautical authorities to such arrangements.

6. Notwithstanding note 1 above, pursuant to the cooperative arrangement between a designated airline of each country, the designated airline of Canada shall be entitled to block-space and code-share on up to seven flights per week in each direction on the agreed routes. The capacity made available under such an arrangement to the designated airline of Canada for the transportation of traffic between its home country and an intermediate point in a third country may be held out under its own code or, at its option, under the code of the airline of that third country.

7. Additional capacity may be agreed to in conformity with the provisions of Article XI.