Decision No. 359-A-2013

September 13, 2013

APPLICATIONS by Korean Air Lines Co. Ltd. and Etihad Airways P.J.S.C. carrying on business as Etihad Airways, pursuant to section 60 of the Canada Transportation Act, S.C., 1996, c. 10, as amended, and section 8.2 of the Air Transportation Regulations, SOR/88-58, as amended.

File No.: 
M4835/E202-K45

Korean Air Lines Co. Ltd. (Korean Air) and Eithad Airways P.J.S.C. carrying on business as Etihad Airways (Etihad Airways) have applied to the Canadian Transportation Agency (Agency) for an approval to permit Etihad Airways to provide its scheduled international service between the United Arab Emirates and Canada by selling transportation in its own name on flights operated by Korean Air between Seoul, Korea and Vancouver, British Columbia, Canada, for a period of three years or such longer period as may be authorized by the Agency commencing September 16, 2013.

Korean Air has also requested an exemption from the application of subsection 8.2(2) of the Air Transportation Regulations (ATR), which requires the filing of an application for an approval at least 45 days before the first planned flight. The Agency finds that compliance with subsection 8.2(2) of the ATR is impractical in this case.

Accordingly, the Agency, pursuant to paragraph 80(1)(c) of the Canada Transportation Act (CTA), exempts Korean Air from the application of subsection 8.2(2) of the ATR.

Etihad Airways is licensed to operate a scheduled international service in accordance with the Agreement between the Government of Canada and the Government of the United Arab Emirates on Air Transport, signed on June 17, 2001 (Agreement).

The Agency has considered the application and the material in support and is satisfied that it meets the remaining requirements of section 8.2 of the ATR.

With respect to the duration of the approval requested, in light of the provisions of the Agreement, the Agency considers three years to be appropriate.

Accordingly, the Agency, pursuant to paragraph 60(1)(b) of the CTA and section 8.2 of the ATR, approves the use by Etihad Airways of aircraft and flight crew provided by Korean Air, and the provision by Korean Air of such aircraft and flight crew to Etihad Airways, to permit Etihad Airways to provide its scheduled international service on licensed routes between the United Arab Emirates and Canada by selling transportation in its own name on flights operated by Korean Air between Seoul and Vancouver, for a period of three years commencing September 16, 2013.

This approval is subject to the following conditions:

  1. Etihad Airways shall continue to hold the valid licence authority.
  2. Etihad Airways shall apply its published tariffs, in effect, to the carriage of its traffic. Nothing in any commercial agreement between the air carriers relating to limits of liability shall diminish the rights of passengers as stated in such tariffs.
  3. The air service approved shall only be provided as long as a code-sharing agreement providing for such service remains in effect.
  4. Etihad Airways and Korean Air shall continue to comply with the insurance requirements set out in subsections 8.2(4), 8.2(5) and 8.2(6) of the ATR.
  5. Etihad Airways shall continue to comply with the public disclosure requirements set out in section 8.5 of the ATR.
  6. Etihad Airways and Korean Air shall provide the Agency with a copy of any new agreement or amendments to their code-sharing agreement, including any new or amended annex, without delay.
  7. Air transportation using Etihad Airways code on flights operated by Korean Air between Seoul and Vancouver shall not be sold separately and shall only be available to traffic carried on a continuous journey under Etihad Airways’ code between the United Arab Emirates and Canada. No local traffic may be carried under Etihad Airways’ code between Seoul and Vancouver.
  8. This approval does not apply to the carriage of cargo.

Member(s)

Raymon J. Kaduck
J. Mark MacKeigan
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