Order No. 2018-A-233
APPLICATION by Voyageur Airways Limited (Voyageur Airways) for an exemption from the application of section 58 of the Canada Transportation Act, S.C., 1996, c. 10, as amended (CTA).
Voyageur Airways has applied to the Canadian Transportation Agency (Agency) for an exemption to allow for the transfer of its licences.
Voyageur Airways is licensed to operate a domestic service, small and medium aircraft, a non-scheduled international service, small aircraft and medium aircraft and a scheduled international service between points in Canada and points in the United States of America, small aircraft and medium aircraft.
Section 58 of the CTA provides that a licence issued for the operation of an air service is not transferable.
Pursuant to paragraph 80(1)(c) of the CTA, the Agency may exempt a person from the application of a provision of the CTA where the Agency is of the opinion that compliance with the provision by the person is unnecessary, undesirable or impractical.
Voyageur Airways intends to amalgamate with its parent company, Voyageur Aviation Corp. (Voyageur Aviation) on January 1, 2019. The amalgamated company, Voyageur Aviation, will carry on the existing business of Voyageur Airways and to operate under the name Voyageur Airways.
With respect to the requirement to be Canadian, the Agency is satisfied, based on the information and documents on file, that the amalgamated company, Voyageur Aviation, will meet the Canadian ownership and control requirements as defined in subsection 55(1) of the CTA upon the execution of the proposed amalgamation.
With respect to the eligibility to hold a licence for scheduled international services, the Agency notes that the Minister of Transport's designation includes and applies to Voyageur Aviation to conduct international air services between Canada and the United States of America pursuant to the Agreement.
The Agency also notes that Voyageur Aviation has the prescribed liability insurance coverage. The Agency notes, however, that Voyageur Aviation, the amalgamated company, does not presently hold a valid Canadian aviation document (CAD) under its name.
However, Transport Canada confirmed that Voyageur Airways' existing CAD will continue to be valid post-amalgamation and will be reissued under Voyageur Aviation's name.
Finally, the Agency notes that the condition relating to the financial requirements have already been met at the time the licences to be transferred were issued.
The Agency is therefore satisfied that Voyageur Aviation meets the requirements of section 61 and subsections 69(1) and 73(1) of the CTA, with the exception of the requirement to hold a valid CAD.
To ensure that the proposed corporate restructuring has not changed in any material or substantial way from that reported to the Agency and that Voyageur Aviation meets the requirement of the subparagraphs 61(a) (ii), 69(1)(a)(ii) and 73(1)(a)(ii) of the CTA, the Agency orders Voyageur Airways to file with the Agency the CAD issued by Transport Canada and all signed documents that relate to the proposed restructuring.
The Agency has considered the matter and finds that the proposed amalgamation, as described by Voyageur Airways, is a corporate restructuring. Therefore, compliance by Voyageur Airways with section 58 of the CTA is unnecessary, undesirable or impractical in the present circumstances.
Accordingly, the Agency, pursuant to paragraph 80(1)(c) of the CTA, exempts Voyageur Airways from the application of section 58 of the CTA.
Licence Nos. 972024, 977059 and 980113 will be transferred from Voyageur Airways to the new amalgamated company, Voyageur Aviation. However, pursuant to paragraph 28(1)(b) of the CTA, the Agency may in any order direct that the order or a portion or provision of it shall come into force on the happening of any contingency, event or condition specified in the order. The Agency orders that the transfer of these licences shall come into force when the following conditions are met:
- the execution of the proposed amalgamation; and
- upon receipt by the Agency of Voyageur Aviation's CAD.
Voyageur Aviation will need to comply, on an ongoing basis, with the licensing requirements of the CTA.