Order No. 1998-A-14

January 28, 1998

File No. M4211/A633-2

Under Licence No. 977235, Air Castle, Inc. (hereinafter the Licensee) is authorized to operate a non-scheduled international service to transport traffic on a charter basis between points in Canada and points in the United States of America.

The certificate of insurance of the Licensee on file with the Canadian Transportation Agency (hereinafter the Agency) is not valid.

Pursuant to subparagraph 73(1)(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 73(1)(a)(iii) of the CTA.

Pursuant to paragraph 75(1)(b) of the CTA, the Agency must suspend or cancel a non-scheduled international 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 paragraph 75(1)(b) of the CTA, hereby suspends Licence No. 977235.

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 paragraph 75(1)(b) of the CTA.

This Order shall be affixed to Licence No. 977235 and the suspension of the licence shall remain in effect until further order of the Agency.