
The expanded agreement and Etihad’s Calgary service broaden travel options, intensify competition, and strengthen trade links between North America’s energy hub and the Gulf’s growing market.
The recent liberalization of Canada’s air service agreements marks a strategic shift for both passenger and cargo markets. By raising the ceiling to 35 weekly frequencies and removing cargo caps, the Canada‑UAE treaty aligns with global trends toward open skies, encouraging airlines to deploy larger fleets and more flexible schedules. This regulatory boost not only facilitates greater connectivity but also positions Canada as a more attractive hub for Middle‑East carriers seeking access to North American markets, especially in high‑value sectors like energy and technology.
Etihad’s decision to connect Calgary with Abu Dhabi reflects a calculated move to tap into the Canadian province’s robust energy and innovation ecosystem. Calgary’s status as a petroleum and clean‑tech nexus offers a steady stream of business travelers and cargo demand, while the nonstop service differentiates Etihad from competitors that rely on hub‑and‑spoke models. The use of the fuel‑efficient Boeing 787‑9 further underscores the airline’s intent to balance capacity with cost‑effectiveness, potentially translating into competitive fares and a stronger market foothold in western Canada.
Beyond passenger traffic, the unlimited cargo provision unlocks new trade pathways for perishable goods, high‑tech components, and petrochemical products. Coupled with the extended Air Canada‑Emirates codeshare, travelers gain seamless access across North America, the Middle East, and beyond, fostering deeper commercial ties. As Gulf carriers collectively secure up to 25 weekly flights to Canada, the market is poised for fare compression, service innovation, and a broader diversification of Canada’s international trade portfolio.
Etihad Airways , more than a month after Canada and the United Arab Emirates (UAE) expanded their air transport agreement, unveiled flights to Calgary International Airport (YYC), leaving UAE-based airlines with up to 10 weekly frequencies that could be used for Canada-bound flights.
On January 29, 2026, Etihad Airways said that from November 2, it will launch direct flights between YYC and Abu Dhabi Zayed International Airport (AUH). The flights, operated with a Boeing 787-9, will depart AUH on Tuesdays, Thursdays, Fridays, and Sundays, with return flights leaving YYC on the same day.
The route will link “the UAE’s dynamic capital with Calgary, a thriving centre for energy, innovation and culture,” Etihad Airways said, highlighting that no other airline had offered direct flights between the two airports.
Etihad Airways’ announcement came almost two months after Canada expanded its air transport agreement with the UAE in December 2025, which enables carriers of both countries to operate up to 35 weekly frequencies between Canada and the UAE, up from 21.
The agreement also includes unlimited all-cargo flights, up from four weekly per country, and open fifth-freedom all-cargo services. Canada also renewed its agreement with Saudi Arabia, expanding the weekly frequencies that both countries’ airlines can operate from four to 14, as well as unlimited all-cargo flights and open fifth-freedom rights for all-cargo operations.
“Expanding Canada’s air transport agreements allows new air services that provide more travel options for Canadians and encourage lower fares, strengthen our people-to-people and commercial ties around the world, and help promote trade diversification.”
When the Competition Bureau of Canada published its ‘Competition in Canada’s airline industry’ market study in June 2025, one of its recommendations was to “renegotiate important air service agreements to remove restrictions” for international partners and their airlines.
Cirium’s Diio Mi showed that in November, the same month that Etihad Airways will launch its services to YYC, the airline will also offer daily flights between AUH and Toronto Pearson International Airport (YYZ).
Emirates will also offer daily flights from Dubai International Airport (DXB) to Montréal-Pierre Elliott Trudeau International Airport (YUL) and YYZ each, while Air Canada has daily flights between YYZ and DXB.
As such, UAE-based carriers will have 25 weekly flights, leaving them with up to 10 weekly frequencies on routes between the UAE and Canada.
Air Canada and Emirates signed a memorandum of understanding (MoU) to renew their codeshare agreement up to 2032 in November 2025, which includes plans to “reciprocally expand redemptions to each other’s Premium Economy cabins.”
Since the two airlines began their partnership in 2022, they “have already served more than 550,000 customers, connecting travellers across 56 codeshare routes linking Canada, the US, Dubai, and key destinations around the globe.”
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