Order No. 1998-A-772

December 18, 1998

December 18, 1998

IN THE MATTER OF the operation of a domestic service by Ashuanipi Aviation Limited - Licence No. 972094.

File No. M4425/A218

Under Licence No. 972094, Ashuanipi Aviation Limited (hereinafter the Licensee) is authorized to operate a domestic service, small aircraft.

By Order No. 1997-A-535 dated August 29, 1997, Licence No. 972094 was suspended pursuant to subsection 63(1) of the Canada Transportation Act, S.C. 1996, c. 10 (hereinafter the CTA) for failure by the Licensee to hold a valid Canadian aviation document. Pursuant to that Order, the Licensee was required to show cause within thirty (30) days from the date of the Order why the said licence should not be cancelled.

On September 29, 1997, the Licensee requested a suspension of Licence No. 972094. Subsequently, by Order No. 1997-A-666 dated October 27, 1997, Licence No. 972094 was suspended for a period of one year from the date of the Order.

On June 18, 1998, the Licensee filed an application to reinstate its Licence and, by Order No. 1998-A-333 dated June 19, 1998, Licence No. 972094 was reinstated.

By Decision No. LET-A-252-1998 dated September 25, 1998, the Canadian Transportation Agency (hereinafter the Agency) advised the Licensee that Agency staff had conducted an inspection of its operations and determined that, prior to the reinstatement of its Canadian aviation document on June 11, 1998 and of Licence No. 972094 on June 19, 1998, the Licensee operated a publicly available domestic air service. The Licensee was required to show cause within thirty (30) days of receipt of the letter why the Agency should not find Ashuanipi Aviation to have contravened section 57 of the CTA and take appropriate action against the Licensee as stated in section 174 of the CTA.

Section 57 of the CTA provides that

No person shall operate an air service unless, in respect of that service, the person

(a) holds a licence issued under this Part;

(b) holds a Canadian aviation document; and

(c) has the prescribed liability insurance coverage.

Section 174 of the CTA provides that

Every person who contravenes a provision of this Act or a regulation or order made under this Act, other than an order made under section 47, is guilty or an offence punishable on summary conviction and liable

(a) in the case of an individual, to a fine not exceeding $5,000; and

(b) in the case of a corporation to a fine not exceeding $25,000.

In its letter dated October 20, 1998, the Licensee states that this situation resulted from a misunderstanding with respect to when it could resume operations and from the assumption that Transport Canada personnel would contact the Agency on its behalf with respect to the reinstatement of its licence.

The Agency has reviewed and considered the matter and has determined that the Licensee has contravened section 57 of the CTA. The Agency notes that the Licensee ceased operations immediately upon being advised that its licence remained suspended. In light of the fact that remedial action was taken in an expeditious manner, the Agency will take no action against the Licensee at this time.

The Licensee is hereby advised that any subsequent contravention could result in the Agency imposing the full extent of the sanctions provided by the CTA, up to and including licence suspension, cancellation or criminal prosecution.

The Agency notes that the Licensee has recently voluntarily surrendered its Canadian aviation document and filed an application with the Agency to suspend its licence as operations have ceased for this season. The Licensee is reminded to ensure that it satisfies the requirements of section 57 of the CTA which include holding a valid licence, a Canadian aviation document and the prescribed liability insurance coverage prior to resuming operations in 1999.

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