Decision No. 183-A-2011

May 16, 2011

May 16, 2011

APPLICATION by Cochrane Air Services Limited to reinstate Licence No. 100053.

File No. M4210/C102-1


On May 7, 2010, the Canadian Transportation Agency (Agency) issued a licence to Cochrane Air Services Limited (applicant) authorizing it to operate a domestic service, small aircraft.

The Minister of Transport issued an Order conditionally exempting the applicant from the application of subparagraph 61(a)(i) of the Canada Transportation Act, S.C., 1996, c. 10, as amended (CTA), namely the requirement to be Canadian. The Order was valid from April 12 to November 1, 2010, and the applicant's licence was subject to the Order.

In Decision No. 459-A-2010, the Agency, pursuant to paragraph 63(2)(b) of the CTA, suspended the applicant's domestic licence.

The applicant has now requested a reinstatement of its licence.

To obtain a licence to operate the proposed service, pursuant to subparagraph 61(a)(i) of the CTA, the applicant must establish to the satisfaction of the Agency that, among other conditions, it is Canadian. Pursuant to subsection 55(1) of the CTA, "Canadian" means a Canadian citizen or a permanent resident within the meaning of subsection 2(1) of the Immigration and Refugee Protection Act, a government in Canada or an agent of such a government or a corporation or other entity that is incorporated or formed under the laws of Canada or a province, that is controlled in fact by Canadians and of which at least seventy-five per cent, or such lesser percentage as the Governor in Council may by regulation specify, of the voting interests are owned and controlled by Canadians.

The Agency has reviewed all of the submissions made by the applicant concerning its Canadian status, including the information contained in the current application and all documentation filed in support.

With respect to the requirement that the applicant be incorporated or formed under the laws of Canada or a province, the Agency notes that the applicant is incorporated under the Ontario Business Corporations Act.

With respect to the requirement that at least seventy-five per cent of the voting interests be owned and controlled by Canadians, the Agency has considered the documentation filed and is satisfied that at least seventy-five per cent of the voting interests of the applicant are owned and controlled by Canadians.

With respect to the requirement that the air carrier be controlled in fact by Canadians, control in fact is generally viewed by the Agency as the ongoing power or ability, whether exercised or not, to determine or decide the strategic decision-making activities of an air carrier. It can also be viewed as the ability to manage and run the day-to-day operations of an air carrier. When determining where "control in fact" lies, the Agency carefully examines all actual and proposed business and other relationships between the various shareholders and between the shareholders and the company whose ownership is under review. All actual and proposed operational, managerial and financial relationships are considered.

The Agency has considered the documentation filed by the applicant. The Agency notes that all of the outstanding shares in the applicant are owned by a Canadian. The applicant's directors and officers are also Canadian.

The applicant confirmed that it does not have relationships or agreements with any non-Canadian persons or entities, nor will it likely have any.

For the above reasons, the Agency is satisfied that the applicant is Canadian as prescribed in section 61 and as defined in subsection 55(1) of the CTA.

The applicant has filed submissions related to its Canadian status, and is no longer relying on a Ministerial exemption. Therefore, the Agency will treat this application as a request for a new licence.

The Agency is also satisfied that the applicant meets the requirements of subparagraphs 61(a)(ii) and (iii) of the CTA.

Therefore, the Agency will issue to the applicant a new licence to operate a domestic service, small aircraft.

Licence No. 100053 is cancelled.

Members

  • Raymon J. Kaduck
  • J. Mark MacKeigan

Member(s)

Raymon J. Kaduck
J. Mark MacKeigan
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