Agency Rulings

Order No. 1997-A-126

March 3, 1997

IN THE MATTER OF the operation of a Class 9-4 Charter non-scheduled international service by Balkan Bulgarian Airlines - NTA Licence No. 920442.

File No. M4895/B105-4-1

WHEREAS Balkan Bulgarian Airlines (hereinafter the Licensee) holds NTA Licence No. 920442 which specifies that the Licensee is authorized to operate a Class 9-4 Charter non-scheduled international service using fixed wing aircraft in Group H between points in Bulgaria and points in Canada;

AND WHEREAS by registered letter dated November 16, 1995, NTA Licence No. 920442 was suspended pursuant to subsection 97(1) of the National Transportation Act, 1987, R.S.C., 1985, c. 28 (3rd Supp.), for failure by the Licensee to file with the National Transportation Agency a valid certificate of insurance. The Licensee was also required to show cause why the aforementioned licence should not be cancelled pursuant to subsection 97(1) of the National Transportation Act, 1987;

AND WHEREAS on July 1, 1996, the Canada Transportation Act, S.C., 1996, c. 10 (hereinafter the CTA) came into effect. Pursuant to section 195 of the CTA and to the Discontinuance and Continuance of Proceedings Order, 1996, SOR/96-383, proceedings relating to certain matters before the National Transportation Agency, prior to the coming into effect of section 195, shall be dealt with by the Canadian Transportation Agency (hereinafter the Agency), pursuant to the provisions of the CTA. This proceeding is included in the Order as a matter to be dealt with pursuant to the provisions of the CTA;

AND WHEREAS the Licensee is reminded that NTA Licence No. 920442 continues to be suspended pursuant to letter dated November 16, 1995;

AND WHEREAS 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. As the Licensee did not meet these requirements at that time, the Agency will not issue a replacement licence;

AND WHEREAS the Licensee has replied to the show-cause proceeding by requesting a suspension of its NTA licence;

AND WHEREAS pursuant to paragraph 75(2)(b) of the CTA, the Agency may suspend or cancel a non- scheduled international licence in accordance with a request from the Licensee for the suspension or cancellation;

AND WHEREAS the Agency has considered the matter and notes that the Licensee's certificate of insurance on file with the Agency lapsed on November 6, 1995. Therefore, the Agency has determined pursuant to subsection 27(1) of the CTA that this matter should be dealt with pursuant to the provisions of paragraph 75(1)b) of the CTA which require the Agency to suspend or cancel licences when licensees fail to meet the requirement of subparagraph 73(1)a)(iii) of the CTA;

AND WHEREAS The Agency notes that the Licensee continues to not meet the requirement of subparagraph 73(1)(a)(iii) of the CTA and, in the opinion of the Agency, has failed to adequately show cause why its licence should not be cancelled;

AND WHEREAS the Agency is of the opinion that NTA Licence No. 920442 should be cancelled effective thirty (30) days from the date of this Order unless the Licensee satisfies the Agency that it meets the requirement of subparagraph 73(1)(a)(iii) of the CTA by that date;

AND WHEREAS the Licensee may apply to the Agency for a new licence at any future date, and a licence will be issued by the Agency, when the Licensee establishes to the satisfaction of the Agency that it meets the requirements set out in subsection 73(2) of the CTA.

NOW THEREFORE, IT IS ORDERED THAT:

Pursuant to paragraph 75(1)(b) of the CTA, NTA Licence No. 920442 is hereby cancelled effective thirty (30) days from the date of this Order unless the Licensee satisfies the Agency that it meets the requirement of subparagraph 73(1)(a)(iii) of the CTA.

This Order shall form part of NTA Licence No. 920442 and shall remain affixed thereto as long as the said Order is in force.