Order No. 1997-A-735

December 15, 1997

File No. M4211/K21-2

Under Licence No. 967679, Ketchikan Air Service, Inc. (hereinafter the Licensee) is authorized to operate a non-scheduled international service to transport traffic on a charter basis between points in the United States of America and points in Canada.

By Order No. 1997-A-693 dated November 14, 1997, Licence No. 967679 was suspended pursuant to paragraph 75(1)(b) of the Canada Transportation Act, S.C., 1996, c. 10 (hereinafter the CTA), for failure by the Licensee to file with the Canadian Transportation Agency (hereinafter the Agency) a valid certificate of insurance. The Licensee was required to show cause within thirty (30) days from the date of the Order why Licence No. 967679 should not be cancelled pursuant to paragraph 75(1)(b) of the CTA.

The Licensee has replied to the show-cause proceeding by requesting another suspension of its licence.

Pursuant to paragraph 75(2)(b) of the CTA, the Agency may suspend or cancel a non-scheduled international licence in accordance with a request from the Licensee for the suspension or cancellation.

The Agency has considered the matter and, in light of the fact that the certificate of insurance of the Licensee on file with the Agency expired on November 1, 1997, has determined pursuant to subsection 27(1) of the CTA that this matter should be dealt with pursuant to the provisions of paragraph 75(1)(b) of the CTA which require the Agency to suspend or cancel licences when licensees fail to meet the requirement of subparagraph 73(1)(a)(iii) of the CTA.

In light of the fact that the Licensee does not meet the requirement of subparagraph 73(1)(a)(iii), the Agency, pursuant to paragraph 75(1)(b) of the CTA, hereby suspends Licence No. 967679.

To reinstate the suspended licence, the Licensee is hereby required to file an application to that effect within one year from the date of this Order. If, at that time, upon consideration of the application, the Agency determines that the Licensee meets the requirements of subparagraphs 73(1)(a)(ii) and (iii) and paragraph 73(2)(a) of the CTA, which provide that the Licensee must hold a document issued by its government that is equivalent to a non-scheduled international licence issued by the Agency, must hold a Canadian aviation document and must have prescribed liability insurance coverage, the Agency shall lift the suspension.

Alternatively, one year from the date of this Order, if the application for reinstatement is not filed or the Licensee does not meet any of the requirements of subparagraphs 73(1)(a)(ii) and (iii) and paragraph 73(2)(a) of the CTA, the Licensee is required to show cause why Licence No. 967679 should not be cancelled pursuant to paragraph 75(1)(b) of the CTA.

This Order shall form part of Licence No. 967679 and shall remain affixed thereto as long as the said Order is in force.