Order No. 1999-A-56

February 1, 1999

File No. M4210/G149-1

Under Licence No. 962303, Grand Island Aviation Limited (hereinafter the Licensee) is authorized to operate a domestic service, small aircraft.

The Canadian Transportation Agency (hereinafter the Agency) was advised by Sedgwick Aviation Canada on December 31, 1998 that the insurance coverage prescribed in the certificate of the Licensee on file with the Agency was cancelled effective December 30, 1998.

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 provide the Licensee with a period of thirty (30) days 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. 962303.

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 licence should not be cancelled pursuant to subsection 63(1) of the CTA.

This Order shall be affixed to Licence No. 962303 and the suspension of the licence shall remain in effect until further order of the Agency.