Agency Rulings

Decision No. 6-A-1997

January 9, 1997

APPLICATION by Kasba Lake Lodge Ltd. carrying on business as Kasba Air Service for suspension of Licence Nos. 882274 and 882275.

File Nos. M4205/K8-4-1
M4205/K8-5-1

Docket No. 962313

Kasba Lake Lodge Ltd. carrying on business as Kasba Air Service (hereinafter the Licensee) has applied to the Canadian Transportation Agency (hereinafter the Agency) for the suspension set out in the title. The application was received on September 11, 1996.

Under NTA Licence No. 882274, the Licensee is authorized to operate a Class 4 Charter domestic service using fixed wing aircraft in Group B, from a base at Kasba Lake, Northwest Territories between June 1 and September 15 of each year.

Under NTA Licence No. 882275, the Licensee is authorized to operate a domestic service.

With respect to the services authorized under the aforementioned licences, the Agency notes that the Canada Transportation Act, S.C., 1996, c. 10 (hereinafter the CTA) establishes a uniform domestic licensing regime for all of Canada. Further, as a result of amendments made to the Air Transportation Regulations, SOR/88-58, (hereinafter the ATR) the classification of aircraft and air services has been amended. Accordingly, under the new Canadian domestic licensing regime, the Licensee will be authorized to operate all of its existing domestic services under one licence using small aircraft.

It should be noted that as a result of the coming into force of the CTA, replacement licences are being issued to licensees who establish to the satisfaction of the Agency, as of July 1 1996, that they met the applicable requirements set out in the CTA. On July 1, 1996, the Licensee satisfied the requirements set out in section 61 of the CTA. Accordingly, the Agency will issue replacement Licence No. 972030 to the Licensee authorizing it to operate a domestic service, small aircraft.

Pursuant to paragraph 63(2)(b) of the CTA, the Agency may, subject to section 64, suspend or cancel a domestic licence in accordance with a request from the Licensee for the suspension or cancellation. Section 64 of the CTA requires that the Licensee shall give notice of a proposal to discontinue its domestic service and that the Licensee shall not implement the proposal until the expiration of sixty (60) days after the notice is given.

However, the Agency, in light of the seasonal nature of the service, is of the opinion that compliance by the Licensee with section 64 of the CTA is unnecessary in this case. Accordingly, pursuant to paragraph 80(1)(c) of the CTA, the Agency hereby exempts the Licensee from the application of section 64 of the CTA.

The Agency has considered this application and the material filed in support thereof, and, in accordance with the request of the Licensee, will suspend Licence No. 972030.

In addition, the Agency notes that the Licensee's operations are of a seasonal nature and that the Licensee will not be operating its services during the period between freeze-up and break-up of each year. Accordingly, the Agency finds it appropriate to suspend Licence No. 972030 pursuant to paragraph 63(2)(b) of the CTA during the period between freeze-up and break-up of each year.

Accordingly, pursuant to paragraph 63(2)(b) of the CTA, Licence No. 972030 will hereby be suspended during the period between freeze-up and break-up of each year.

Further, the suspension of Licence No. 972030 will be lifted annually provided that the Licensee:

a) continues to be Canadian,

b) holds a Canadian aviation document in respect of the service to be provided,

c) has the prescribed liability insurance coverage as evidenced by a current Certificate of Insurance in the form set out in Schedule I of the ATR to be filed each year prior to recommencing operations, and

d) if applicable, meets the prescribed financial requirements of the CTA.

Failure to satisfy the Agency in this regard will result in further action being taken by the Agency against the Licensee to show cause why Licence No. 972030 should not be cancelled.

This Decision shall form part of Licence No. 972030 and shall remain affixed thereto as long as the said Decision is in force.