Decision No. 501-A-1997

August 12, 1997

August 12, 1997

APPLICATION by Prime Air, Inc. doing business as Transmeridian Airlines of Houston, Texas, U.S.A. pursuant to subsection 73(2) of the Canada Transportation Act, S.C., 1996, c. 10, for a licence to operate a non-scheduled international service to transport traffic on a charter basis between points in Canada and points in the United States of America.

File No. M4211/T266-2

Docket No. 971185


Prime Air, Inc. doing business as Transmeridian Airlines (hereinafter the applicant) has applied to the Canadian Transportation Agency pursuant to the Canada Transportation Act (hereinafter the CTA) and in accordance with the Air Transport Agreement between the Government of Canada and the Government of the United States of America signed February 24, 1995 (hereinafter the Agreement), for a licence to operate the service set out in the title. The application was received on July 21, 1997 and was complete and ready for processing on August 5, 1997.

The applicant has been designated by Diplomatic Note No. 334 dated August 5, 1997 by the Government of the United States of America, pursuant to the above-noted Agreement.

The applicant filed an affidavit attesting that within the preceding twelve months, it did not contravene section 59 of the CTA in that it has not sold, caused to be sold or publicly offered for sale in Canada transportation in respect of the applied for air service without holding the required licence. The applicant has also undertaken in respect of the air service applied for that it will not contravene section 59 of the CTA prior to the issuance of the applied for licence. The Agency is not aware of any evidence that the applicant contravened section 59 of the CTA within the preceding twelve months.

The Agency has reviewed the material filed and is satisfied that the applicant meets the requirements of subsection 73(2) of the CTA. The Agency is also satisfied that the pertinent terms and conditions of the Agreement have been complied with.

Accordingly, the Agency will issue to the applicant a licence to operate a non-scheduled international service to transport traffic on a charter basis between points in Canada and points in the United States of America.

The Agency deems it appropriate to include the terms and conditions set out below in the licence to be issued pursuant to this Decision.

The licence to be issued pursuant to this Decision shall be subject, in addition to the conditions prescribed by the Air Transportation Regulations, SOR/88-58, as amended (hereinafter the ATR), to the requirements to hold a Canadian aviation document issued by the Minister of Transport, and to have prescribed liability insurance coverage as set out in section 7 of the ATR, and to the following terms and conditions to which the licence is made subject pursuant to subsection 74(1) of the CTA:

  1. The Licensee is authorized to transport traffic on a charter basis between points in Canada and points in the United States of America.
  2. The Licensee is prohibited from carrying local traffic between points in Canada.
  3. The operation of the non-scheduled international service authorized herein shall be conducted subject to the provisions of the Agreement and to any arrangements related thereto as may be agreed to between Canada and the United States of America.
  4. Unless terminated at an earlier date in accordance with the CTA or the Agreement, this licence shall terminate at the termination or expiration of the Agreement, or upon the effective date of any amendment to the Agreement which shall have the effect of eliminating the rights herein authorized.
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