Order No. 2000-A-288
July 17, 2000
IN THE MATTER OF an application by Pascan Aviation Inc., for an exemption from the application of section 64 of the Canada Transportation Act, S.C., 1996, c. 10 with respect to its proposed discontinuance of service at Rimouski and Gaspé, Quebec effective July 26, 2000.
File No. M4210/P295-1
Pascan Aviation Inc. (hereinafter Pascan) filed with the Canadian Transportation Agency (hereinafter the Agency) the application set out in the title. The application was received on May 19, 2000.
On July 5, 2000, the Canada Transportation Act, S.C. 1996, ch. 10 (hereinafter the CTA) was amended. However, sections mentioned in this Decision refer to the CTA before amendments were made.
Under Licence No. 000019, Pascan is authorized to operate a domestic service, small aircraft and a domestic service, all-cargo aircraft.
In its application, Pascan submits that it intends to operate a temporary domestic service between Montréal (Dorval), Québec, Rimouski and Gaspé commencing May 23, 2000 and terminating on July 25, 2000. Due to the temporary nature of the service, Pascan requests an exemption from the application of section 64 of the CTA with respect to its operations at Rimouski and Gaspé.
Pursuant to subsections 64(1) and (2) of the CTA, where a licensee proposes to discontinue a domestic service or to reduce the frequency of such a service to a point to less than one flight per week and, as a result of the proposed discontinuance or reduction, there will be only one licensee or no licensee offering at least one flight per week to that point, the licensee shall give sixty (60) days notice of the proposal in prescribed form and manner to such persons as are prescribed.
With respect to service at Gaspé, the Agency notes that several flights per week to Gaspé are presently offered by Regionnair Inc. and by Canadian Airlines International Ltd. carrying on business under the firm name and style of Canadian Airlines International or Canadi*n Airlines or Canadi*n and Air Canada which are operated by Air Nova pursuant to a code share agreement. Accordingly, the Agency finds that following the discontinuance of service at Gaspé by Pascan, more than one flight per week will continue to be offered at Gaspé by more than one licensee. Therefore, section 64 of the CTA does not apply with respect to the discontinuance of service by Pascan at Gaspé.
With respect to the discontinuance of service by Pascan at Rimouski, the Agency notes that following this discontinuance, there will be only one licensee offering at least one flight per week. Accordingly, the Agency has determined that section 64 of the CTA applies with respect to the discontinuance of service by Pascan at Rimouski.
Pursuant to paragraph 80(1)(c) of the CTA, the Agency may, by order, on such terms and conditions as it deems appropriate, exempt a person from the application of any provisions of Part II or of a regulation or order made under that Part where the Agency is of the opinion that compliance with the provision by the person is unnecessary, undesirable or impractical.
The Agency notes that the service offered by Pascan at Rimouski is temporary in nature and that this was disclosed in a newspaper article published in Le Soleil on May 24, 2000. This newspaper is distributed in many regions of Quebec including Rimouski.
The Agency has carefully considered this matter and is of the opinion that, in light of the foregoing circumstances, compliance by Pascan with the notice requirement set out in subsection 64(1) of the CTA in respect of its proposed discontinuance of service at Rimouski is unnecessary. Accordingly, the Agency hereby exempts Pascan from the application of subsection 64(1) of the CTA subject to the following conditions:
- Upon discontinuance of the service at Rimouski, Pascan shall send a letter to the Minister of Transport and the minister responsible for transportation in the province of Quebec advising of its cessation of services at Rimouski.
- Pascan shall provide the Agency with copies of the letters forwarded to the Ministers as set out above.
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