Order No. 1999-A-436

September 30, 1999

September 30, 1999

IN THE MATTER OF an application by Heavylift Cargo Airlines Limited for authority to operate a flight on August 21, 1999 using a Shorts Belfast aircraft carrying one B767 engine and four B767 engine repair kits for Martinair Holland N.V. between Goose Bay, Labrador and Yellowknife, Northwest Territories.

File No. M4212/H69-2


Heavylift Cargo Airlines Limited (hereinafter Heavylift) has applied to the Canadian Transportation Agency (hereinafter the Agency) for the authority set out in the title. The application was received on the Agency's after hours service on August 21, 1999.

Under Licence No. 977329, Heavylift is authorized to operate a non-scheduled international service to transport goods on a charter basis between points in the United Kingdom of Great Britain and Northern Ireland and points in Canada.

Condition No. 2 of Licence No. 977329 states that the Licensee is prohibited from carrying local traffic between points in Canada.

Pursuant to section 57 of the Canada Transportation Act, S.C. 1996, ch. 10 (hereinafter the CTA), no person shall operate an air service unless, in respect of that service, the person holds a licence; holds a Canadian aviation document and has the prescribed liability insurance coverage.

In addition, subparagraph 61(a)(i) of the CTA states that the Agency shall issue a licence to operate a domestic service to the applicant if it establishes to the satisfaction of the Agency that it is a Canadian.

Pursuant to section 62 of the CTA, the Minister may, by order, exempt a person from being Canadian as set out in subparagraph 61(a)(i) of the CTA, when the Minister considers it necessary or advisable in the public interest.

On August 21, 1999, Transport Canada verbally advised Agency staff that it had exempted Heavylift from the requirement to hold a Canadian air operator certificate which exemption satisfied the Canadian aviation document requirement, and that the formal exemption would follow. Transport Canada also advised that Heavylift had been exempted pursuant to section 62 of the CTA from the application of subparagraph 61(a)(i) of the CTA in order to operate one domestic flight on August 21, 1999 from Goose Bay to Yellowknife, carrying one B767 engine and four B767 engine repair kits for Martinair Holland N.V. using a Shorts Belfast aircraft.

In addition, Heavylift verbally confirmed that it had prescribed liability insurance coverage for the operation of a service within Canada.

Further, based on this information, the Agency verbally advised Heavylift that, pursuant to paragraph 80(1)(c) of the CTA, it was exempted from the requirement to hold a domestic licence in order to operate the said flight.

The Agency usually confirms this exemption in a subsequent written Order; however, the Agency has now been advised that the information it received on August 21, 1999 to the effect that Heavylift had been exempted from being Canadian, pursuant to section 62 of the CTA, and from the requirement to hold a Canadian air operator certificate, in respect of the operation of a domestic service, could not be confirmed. Accordingly, the Agency may not confirm the exemption from the requirement to hold a domestic licence verbally granted to Heavylift on August 21, 1999. In the circumstances, the Agency considers the matter closed.

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