Order No. 1997-A-731

December 12, 1997

File No. M4210/L132-1

Under Licence No. 962143, Lafreni-Air Limited (hereinafter the Licensee) is authorized to operate a domestic service, small aircraft.

The insurance coverage prescribed in the certificate of the Licensee on file with the Canadian Transportation Agency (hereinafter the Agency) has been cancelled effective November 24, 1997.

Pursuant to subparagraph 61(a)(iii) of the Canada Transportation Act, S.C. 1996, c. 10 (hereinafter the CTA), the Licensee must establish to the satisfaction of the Agency that it has the prescribed liability insurance coverage in respect of the service to be provided under the licence.

The Agency has determined that, in respect of the service for which the licence was issued, the Licensee ceases to meet the requirement of subparagraph 61(a)(iii) of the CTA.

Pursuant to subsection 63(1) of the CTA, the Agency must suspend or cancel a domestic licence where the Agency has made such a determination.

The Agency is of the opinion that in the present circumstances it should suspend immediately the said licence and require the Licensee to show cause why the said licence should not be cancelled.

Accordingly, the Agency, pursuant to subsection 63(1) of the CTA, hereby suspends Licence No. 962143.

In addition, the Licensee is hereby required to show cause within thirty (30) days from the date of this Order why the said licence should not be cancelled pursuant to subsection 63(1) of the CTA.

This Order shall form part of Licence No. 962143 and shall remain affixed thereto as long as the said Order is in force.