Decision No. 851-A-1994

December 29, 1994

December 29, 1994

APPLICATION by Air Nova Inc. for a licence to operate a scheduled international service serving the points Fredericton, New Brunswick, Canada and Boston, Massachusetts, U.S.A.

File No. M4895/A126-2-3

Docket No. 941610


Air Nova Inc. (hereinafter Air Nova) 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).

Pursuant to section 86 of the National Transportation Act, 1987, R.S.C., 1985, c. 28 (3rd Supp.) (hereinafter the Act), the Minister of Transport has requested the National Transportation Agency to undertake the selection of a Canadian air carrier and to licence the carrier to provide service between Fredericton and Boston using aircraft type-certificated as capable of carrying not more than 60 passengers and as having a maximum payload capacity of not more that 18,000 pounds pursuant to the automatic provisions of the Agreement.

Acting upon the instructions of the Minister, the Agency gave public notice of the application by Air Nova and service proposal No. SPN 068. No competing applications were submitted in response to the public notice. There were twenty-four (24) submissions requesting to be registered as an interested person to this carrier selection proceeding. Air Nova and the registered interested persons were accordingly advised that the carrier selection proceeding in respect of this service proposal had terminated.

Air Nova has established to the satisfaction of the Agency that it is Canadian as defined by section 67 of the Act and, accordingly, is eligible for designation by the Minister.

The pertinent terms and conditions of the Agreement having been met and the requirements of the selection process having been complied with, the Agency, in accordance with the provisions of sections 69 and 88 of the Act, will issue to Air Nova a licence to operate a scheduled international service pursuant to the Agreement upon compliance with the requirements set out in section 88 of the Act.

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 Fredericton, 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, 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.
  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.
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