Decision No. 174-A-2013

May 8, 2013

APPLICATION by Pascan Aviation Inc. on behalf of itself and Pascan Express Inc., for an approval 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.: 
M4210/P295-1

APPLICATION

Pascan Aviation Inc. (Pascan Aviation), on behalf of itself and Pascan Express Inc. (Pascan Express), has applied to the Canadian Transportation Agency (Agency) for an approval to continue to operate its domestic service using an ATR‑42 “small aircraft” with flight crew provided by Pascan Express, from the date of this Decision until May 9, 2014.

Pascan Aviation is licensed to operate domestic services using small and all-cargo aircraft.

In its Decision No. 180-A-2012, the Agency approved the use by Pascan Aviation of aircraft with flight crew provided by Pascan Express to permit Pascan Aviation to provide its domestic service using an ATR‑42 “small” aircraft with flight crew provided by Pascan Express until May 9, 2013. The Agency also found that the ATR‑42 aircraft was considered as a “small” aircraft.

EXEMPTION REQUESTED

Pascan Aviation filed its application with the Agency on March 28, 2013 which is 43 days before the expiry date of Decision No. 180‑A-2012. Therefore, Pascan Aviation is also requesting an exemption from the application of subsection 8.2(2) of the ATR, which requires the filing of an application for an approval at least 45 days before the first planned flight.

In Decision No. 426-A-2012 dated November 7, 2012, the Agency advised that the 45-day filing requirement will be strictly enforced for any new applications made after the date of issuance of that Decision, unless the applicant can demonstrate to the Agency that the requirements for a wet lease resulted from an unexpected or unforeseeable situation.

Pascan Aviation states that it is in the process of obtaining a domestic licence, medium aircraft. Pascan Aviation explains that in anticipation of obtaining its licence, it had also applied in November 2012 for an approval pursuant to section 60 of the Canada Transportation Act (CTA) and section 8.2 of the ATR to allow the use by Pascan Aviation of medium aircraft and flight crew provided by Pascan Express. However, the application for the domestic licence, medium aircraft, is still in process pending Pascan Aviation meeting all the applicable regulatory requirements.

The Agency has considered the submission and is satisfied that the application was filed late as a result of an unexpected or unforeseeable situation.

Therefore, 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 CTA, exempts Pascan Aviation from the application of subsection 8.2(2) of the ATR.

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

Accordingly, the Agency, pursuant to paragraph 60(1)(b) of the CTA and section 8.2 of the ATR, approves the use by Pascan Aviation of aircraft and flight crew provided by Pascan Express, and the provision by Pascan Express of such aircraft and flight crew to Pascan Aviation, to permit Pascan Aviation to provide its domestic service using an ATR-42 “small aircraft” with flight crew provided by Pascan Express until May 9, 2014.

This approval is subject to the following conditions:

  1. Pascan Aviation shall continue to hold the valid licence authority.
  2. Commercial control of the flights shall be maintained by Pascan Aviation. Pascan Express shall maintain operational control of the flights and shall receive payment based on the rental of aircraft and crew and not on the basis of the volume of traffic carried or other revenue-sharing formula.
  3. Pascan Aviation and Pascan Express 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.
  4. Pascan Aviation shall continue to comply with the public disclosure requirements set out in section 8.5 of the ATR.
  5. Pascan Aviation and Pascan Express shall advise the Agency in advance of any changes to the information provided in support of the application.

Member(s)

Sam Barone
J. Mark MacKeigan
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