Agency Rulings

Order No. 2004-A-286

June 23, 2004

IN THE MATTER OF Order No. 2004-A-107 dated March 19, 2004 and Order No. 2004-A-278 dated June 16, 1004 - Quikair Inc. carrying on business as Quikair.

File No. M4210/Q26-1

By Decision No. 135-A-2004 dated March 19, 2004, the Canadian Transportation Agency (hereinafter the Agency), in response to an application by Quikair Inc. carrying on business as Quikair (hereinafter Quikair), granted a licence (Licence No. 040031) to Quikair authorizing it to operate a domestic service, small aircraft.

The Agency, in its review of the Quikair application for a domestic licence, small aircraft, determined that a document issued to Quikair by the Minister of Transport dated March 5, 2004, which refers to the fact that the aircraft operated under Quikair's proposal will in fact be operated by Bar XH Air Inc., under Air Operator Certificate No. 3484, and by 650584 Alberta Inc., under Air Operator Certificate No. 8758, was a Canadian aviation document within the meaning of the Canada Transportation Act, S.C., 1996, c. 10 (hereinafter the CTA).

By Order No. 2004-A-107 dated March 19, 2004, the Agency, in order to ensure continued compliance by Quikair with subparagraph 61(a)(ii) of the CTA, ordered Quikair to provide the Agency with any documentation, immediately upon execution, that has the effect of altering or proposing to alter the agreement between Quikair and Bar XH Air Inc. or 650584 Alberta Inc. or would indicate that Quikair has entered into or is proposing to enter into a similar arrangement with one or more other parties.

By letter dated April 19, 2004, Quikair submitted an application to include Sunwest Home Aviation Ltd. and Airco Aircraft Charters Ltd. (hereinafter Airco) as additional providers of aircraft in the operation of Quikair's domestic service under Licence No. 040031.

By letter dated June 1, 2004, Quikair withdrew the Sunwest Home Aviation Ltd. portion of the application.

By letter dated June 15, 2004 to Quikair from the Minister of Transport, Airco, holder of Air Operator Certificate No. 7134, was added to Quikair's Canadian aviation document as an additional provider of aircraft in the operation of Quikair's domestic service.

The Agency, in its review of Quikair's application to add Airco as an additional provider of aircraft in the operation of its domestic service, determined that the document issued to Quikair by the Minister of Transport dated June 15, 2004, which refers to the fact that the aircraft operated under Quikair's proposal will in fact be operated by Bar XH Air Inc., under Air Operator Certificate No. 3484, by 650584 Alberta Inc., under Air Operator Certificate No. 8758, and by Airco Aircraft Charters Ltd., under Air Operator Certificate No. 7134, was a Canadian aviation document within the meaning of the CTA.

By Order No. 2004-A-278 dated June 16, 2004, the Agency determined that Quikair met the requirement of subparagraph 61(a)(ii) of the CTA with respect to the operations of Quikair using aircraft operated by Airco.

By letter dated June 16, 2004, Transport Canada advised Quikair that the three air operators referred to in the Canadian aviation document dated June 15, 2004, namely Bar XH Air Inc., 650584 Alberta Inc. and Airco Aircraft Charters Ltd., are not allowed to sub-charter their service to another air operator during the period of their Aircraft Lease Agreements with Quikair.

The Agency has considered this letter from Transport Canada and finds, pursuant to section 32 of the CTA, that it constitutes a change in the facts and circumstances pertaining to Order Nos. 2004-A-107 dated March 19, 2004 and 2004-A-278 dated June 16, 2004 since they were issued. The Agency is of the opinion that these Orders should be varied to reflect this change. Accordingly, the Agency hereby varies Order Nos. 2004-A-107 and 2004-A-278 by adding the following condition:

Quikair is prohibited from providing its domestic air service, small aircraft under Licence No. 040031 using all or part of an aircraft, with a flight crew, that have been provided to Bar XH Air Inc., 650584 Alberta Inc. and Airco Aircraft Charters Ltd. by another person.