Decision No. 181-A-1997

March 27, 1997

March 27, 1997

APPLICATION by Scenic Air Services Ltd. for suspension of NTA Licence Nos. 910037 and 910038.

File Nos. M4205/S183-5-1

Docket Nos. 970037

Scenic Air Services Ltd. (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 January 2, 1997.

The Licensee holds NTA Licence No. 910037 which specifies that the Licensee is authorized to operate a domestic service.

The Licensee holds NTA Licence No. 910038 which specifies that the Licensee is authorized to operate a Class 4 Charter domestic service using fixed wing aircraft in Group A, from a base at Nahanni Butte, Northwest Territories, between May 15 and October 31 of each year.

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.

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 of the CTA. On July 1, 1996, the Licensee satisfied the requirements of paragraph 61(a) of the CTA. Accordingly, the Agency will issue replacement Licence No. 972084 to the Licensee authorizing it to operate a domestic service, small aircraft.

Pursuant to paragraph 63(2)(b) of the CTA, the Agency may suspend or cancel a domestic licence in accordance with a request from the Licensee for the suspension or cancellation.

The Agency has considered the matter and notes that the insurance coverage prescribed in the certificate on file with the Agency has been cancelled effective October 12, 1996. 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 subsection 63(1) of the CTA which require the Agency to suspend or cancel licences when licensees fail to meet the requirement of subparagraph 61(a)(iii) of the CTA.

In light of the fact that the Licensee ceases to meet the requirement of subparagraph 61(a)(iii) of the CTA, the Agency shall, pursuant to subsection 63(1) of the CTA, suspend Licence No. 972084.

Accordingly, pursuant to subsection 63(1) of the CTA, Licence No. 972084 is hereby suspended.

To reinstate the suspended licence, the Licensee is hereby required to file an application to that effect within one year from the date of this Decision. If, at that time, upon consideration of the application, the Agency determines that the Licensee meets the requirements of subparagraphs 61(a)(i) to (iii) of the CTA, which provide that the Licensee must be Canadian, must hold a Canadian aviation document and must have prescribed liability insurance coverage, the Agency shall lift the suspension.
a)(i), (ii) or (iii) of the CTA, the Licensee is required to show cause why Licence No. 972084 should not be cancelled pursuant to subsection 63(1) of the CTA.

This Decision shall form part of Licence No. 972084 and shall remain affixed thereto as long as the said Decision is in force.

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