Order No. 1998-A-796

December 30, 1998

File Nos. M4210/C470-1
M4210/C470-2

Under Licence No. 980096, Cree Lake Air Inc. (hereinafter the Licensee) is authorized to operate a domestic service, small aircraft.

Under Licence No. 980130, the Licensee is authorized to operate a non-scheduled international service, small aircraft, to transport traffic on a charter basis between Canada and any other country.

The insurance coverage prescribed in the certificate of the Licensee on file with the Canadian Transportation Agency (hereinafter the Agency) has been cancelled effective December 11, 1998.

Pursuant to subparagraphs 61(a)(iii) and 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 services to be provided under the licences.

The Agency has determined that, in respect of the services for which the licences were issued, the Licensee ceases to meet the requirement of subparagraphs 61(a)(iii) and 73(1)(a)(iii) of the CTA.

Pursuant to subsection 63(1) and paragraph 75(1)(a) of the CTA, the Agency must suspend or cancel a domestic licence and 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 licences and provide the Licensee with a period of thirty (30) days to show cause why the said licences should not be cancelled.

Accordingly, the Agency, pursuant to subsection 63(1) and paragraph 75(1)(a) of the CTA, hereby suspends Licence Nos. 980096 and 980130.

In addition, the Licensee is provided with a period of thirty (30) days from the date of this Order to show cause why the said licences should not be cancelled pursuant to subsection 63(1) and paragraph 75(1)(a) of the CTA.

This Order shall form part of Licence Nos. 980096 and 980130 and shall remain affixed thereto as long as the said Order is in force.