Determination No. A-2019-15
APPLICATION by Chrono Jet inc. (applicant) pursuant to section 61 of the Canada Transportation Act, S.C., 1996, c. 10, as amended (CTA).
The applicant has applied to the Canadian Transportation Agency (Agency) for a licence to operate domestic services, large and all-cargo aircraft.
The applicant is currently licensed to operate domestic services, medium and all-cargo aircraft.
The Agency is satisfied that the applicant meets all the applicable requirements of section 61 of the CTA as it relates to large aircraft.
In order for a licence to be issued, the Agency must also be satisfied, as provided for in paragraph 61(b) of the CTA, that the applicant has not contravened section 59 of the CTA within the preceding twelve months.
Section 59 of the CTA states that no person shall sell, cause to be sold or publicly offer for sale in Canada an air service unless, if required under Part II of the CTA, a person holds a licence issued under that Part in respect of that service and that licence is not suspended.
On December 19, 2017, the Agency issued Order No. 2017 A-220 where it exempted the applicant from the application of section 59 of the CTA.
The applicant admitted that it contravened condition 1 of the exemption which requires that all advertising in any media, whether written, electronic or telecommunications, shall include a statement that the air services are subject to government approval, unless and until the section 59 exemption expires following the issuance of a licence. All prospective clients must be made aware, before the signature of any charter contract, that the air services are subject to government approval.
The applicant stated that it has taken the necessary steps to correct this contravention and maintains that the public would not have been adversely affected.
The Agency, pursuant to subsection 79(2) of the CTA, has discretion to issue a licence notwithstanding a contravention.
The Agency has considered this matter and, in light of the substantive negative consequences that such a refusal would have on the applicant and of the applicant's position that the public has not been adversely affected, the Agency will not refuse to issue a licence to the applicant even though it admitted having contravened section 59 of the CTA.
In its Determination No. A-2019-8, and for the purpose of issuing the requested licence, the Agency had considered that the applicant's large aircraft were all-cargo aircraft as the Canadian aviation document issued by Transport Canada only allowed the applicant to operate these aircraft in the context of the transportation of goods only. In the latest update of the Canadian aviation document issued by Transport Canada, the Agency notes that large aircraft are now authorized for the transportation of both passengers and goods. As the applicant does not operate aircraft exclusively equipped for the carriage of goods as specified in section 2 of the Air Transportation Regulations, SOR/88-58, as amended, the Agency removes the all-cargo aircraft classification from the licence.
Accordingly, the Agency approves the application for a licence to operate a domestic service, large aircraft.