Order No. 2000-A-1

January 4, 2000

File Nos. M4211/L166-3
M4211/L166-2

Under Licence No. 970198, Laker Airways Inc. (hereinafter the Licensee) is authorized to operate a scheduled international service between points in United States of America and points in Canada.

Under Licence No. 970053, 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.

The Canadian Transportation Agency (hereinafter the Agency) was advised by Aviation Insurance Services (Americas), Inc. on December 17, 1999 that the insurance coverage prescribed in the certificate of the Licensee on file with the Agency was cancelled effective November 23, 1999.

Pursuant to subparagraphs 69(1)(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 service for which the licences were issued, the Licensee ceases to meet the requirements of subparagraphs 69(1)(a)(iii) and 73(1)(a)(iii) of the CTA.

Pursuant to subsection 72(1) and paragraph 75(1)(b) of the CTA, the Agency must suspend or cancel a scheduled international 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 72(1) and paragraph 75(1)(b) of the CTA, hereby suspends Licence Nos. 970198 and 970053.

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 72(1) and paragraph 75(1)(b) of the CTA.

This Order shall be affixed to Licence Nos. 970198 and 970053 and the suspension of the licences shall remain in effect until further order of the Agency.