Order No. 2000-A-15

January 14, 2000

File No. M4210/C473-1

Canadian Regional Airlines (1998) Ltd. carrying on business as Canadian Regional (hereinafter Canadian Regional) filed with the Canadian Transportation Agency (hereinafter the Agency) the application set out in the title. The application was received on January 7, 2000.

Under Licence No. 962583, Canadian Regional is authorized to operate a domestic service, small aircraft and a domestic service, medium aircraft.

Pursuant to subsection 64(2) of the Canada Transportation Act (hereinafter the CTA), a licensee shall not implement a proposal to discontinue a domestic service until the expiration of sixty (60) days after the notice is given or until the expiration of such shorter period as the Agency may, on application by the licensee, specify by order.

Canadian Regional submits that the service to Deer Lake was only provided on an interim basis due to the cessation of service to the community by Inter-Canadian (1991) Inc. Canadian Regional adds that at no time was a permanent service contemplated. It notes that the interim nature of the service was communicated to the local airport authority on December 22, 1999, in the form of a notice advising that this service would be ceased as of January 9, 2000. Notice was also provided to the travel agency community on December 22, 1999.

Canadian Regional submits that at the time its decision was made, the community was being served by two other scheduled carriers, namely Air Nova Inc. and Labrador Airways Limited carrying on business as Air Labrador (hereinafter Air Labrador) and that, accordingly, there was no requirement to provide either the community or the Agency with a notification pursuant to subsection 64(2) of the CTA. Subsequent to this, Air Labrador ceased service to the community sometime during the month of December.

The Agency has considered the application and notes that Canadian Regional did provide prior notice to both the airport authority and the travel agency community. The Agency is of the opinion that Canadian Regional never intended to operate a permanent scheduled service to Deer Lake, that the service was instituted solely due to the cessation of service by Inter-Canadian (1991) Inc. and, further, that the service was operated for a period of less than the required notice of discontinuance time period.

The Agency has carefully considered the matter and finds that compliance with subsections 64(1) and 64(2) of the CTA by Canadian Regional, in the circumstances, is undesirable and impractical. Accordingly, the Agency, pursuant to paragraph 80(1)(c) of the CTA, hereby exempts Canadian Regional from the application of subsections 64(1) and (2) of the CTA.

This Order takes effect on January 7, 2000, the date on which its content was communicated verbally to Canadian Regional.