Decision No. 60-A-1995

January 31, 1995

January 31, 1995

APPLICATION by 3075958 Canada Inc. proposing to change its name to Air Atlantic (1994) Ltd. carrying on business as Air Atlantic for a licence to operate a scheduled international service serving the point Saint John, New Brunswick, Canada, and Boston, Massachusetts, U.S.A.

File No. M4895/T236-2-1

Docket No. 950139


3075958 Canada Inc. proposing to change its name to Air Atlantic (1994) Ltd. carrying on business as Air Atlantic (hereinafter the applicant)1 has applied to the Minister of Transport for a licence to operate the service set out in the title pursuant to the Regional, Local and Commuter Services Agreement contained in Diplomatic Notes ETT-1483 and 300 exchanged between the Government of Canada and the Government of the United States of America on August 21, 1984 (hereinafter the Agreement) in lieu of Air Atlantic Ltd.

Pursuant to paragraph 86 (1)(b) of the National Transportation Act, 1987, R.S.C., 1985, c. 28 (3rd Supp.) (hereinafter the Act), the Minister of Transport advised the National Transportation Agency (hereinafter the Agency) of his decision to designate the applicant in lieu of Air Atlantic Ltd. for the operation of scheduled international services between Saint John, New Brunswick, Canada, and Boston, Massachusetts, U.S.A., pursuant to the provisions of the Agreement.

1 The Agency was advised that the applicant changed its name to Air Atlantic (1995) Ltd. carrying on business as Air Atlantic.

Pursuant to paragraph 86(1)(e) and subsection 86(3) of the Act, the Minister of Transport has directed the Agency to issue to the applicant a licence to operate a scheduled international service serving the points Saint John, New Brunswick, Canada, and Boston, Massachusetts, U.S.A.

The licence granted pursuant to this direction shall expire on October 31,1995 unless the applicant satisfies the Agency that it is Canadian as defined in subsection 67(1) of the Act prior to October 31, 1995.

Under Licence No. 880740, Air Atlantic Ltd. is authorized to operate a scheduled international service to serve the points Saint John, New Brunswick, Canada, and Boston, Massachusetts, U.S.A.

In light of the above-noted change in endorsement by the Minister of Transport, the Agency is of the opinion that Air Atlantic Ltd. ceases to have the qualifications necessary for issuance of the said licence. Accordingly, the Agency considers it appropriate to cancel Licence No. 880740.

The pertinent terms and conditions of the Agreement having been met and the requirements of the Act having been complied with, the Agency, in accordance with the provisions of sections 69 and 88 of the Act, will issue to Air Atlantic (1995) Ltd. carrying on business as Air Atlantic a licence to operate a scheduled international service pursuant to the Agreement.

Moreover, the Agency deems it appropriate in the public interest to include the terms and conditions set out below in the licence to be issued, to reflect terms of the Agreement and direction of the Minister of Transport.

The licence to be issued pursuant to this Decision shall, in addition to the conditions prescribed by the Air Transportation Regulations, SOR/88-58, be subject to the following terms and conditions:

  1. The Licensee is authorized to serve the points Saint John, New Brunswick, Canada and Boston, Massachusetts, U.S.A.
  2. The operation of the scheduled international service authorized herein shall be conducted subject to the appropriate provisions of the Agreement and to any arrangements related thereto as may be agreed to between Canada and the United States of America.
  3. Unless terminated at an earlier date in accordance with the Act or the Agreement, or as a result of the termination or expiration of the aforementioned Agreement, this licence shall expire on October 31, 1995 unless the Licensee satisfies the Agency that it is Canadian as defined in subsection 67(1) of the Act prior to October 31, 1995.
  4. While operating the scheduled international service authorized herein, the Licensee is restricted in its operations to the use of fixed wing aircraft type-certificated as capable of carrying no more than 60 passengers and having a maximum payload capacity of no more than 18,000 pounds.
  5. The scheduled international service authorized herein, when operated with aircraft certificated for 31 or more passengers, shall not be operated in conjunction with other air services when the combination would constitute single-plane service between terminal points of a route named in the schedules of the 1966 Air Transport Agreement between the Government of Canada and the Government of the United States, as amended.
  6. The operation of the scheduled international service authorized herein shall be subject to the applicable provisions of the "use it or lose it" carrier selection policy contained in the Air Transport Committee's Notice of March 11, 1987 which is hereby made a part of this licence.

Air Atlantic Ltd.'s Licence No. 880740 is hereby cancelled pursuant to paragraph 92(1)(a) of the National Transportation Act, 1987.

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