Order No. 2000-A-297

July 28, 2000

File No. M4210/R172-1

Royal Aviation Inc. carrying on business as Royal and/or Conifair and/or Royal Cargo and/or Royal Canada (hereinafter Royal) filed with the Canadian Transportation Agency (hereinafter the Agency) the application set out in the title. The application was received on June 15, 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. 972106, Royal is authorized to operate a domestic service, large aircraft and a domestic service, all-cargo aircraft.

In its application, Royal submits that it intends to operate a temporary domestic service between Toronto, Ontario and Deer Lake and Stephenville, Newfoundland commencing June 23, 2000 and terminating on September 8, 2000. Due to the temporary nature of the service, Royal requests an exemption from the application of section 64 of the CTA with respect to its operations at Deer Lake and Stephenville.

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 Stephenville, the Agency notes that several flights per week to Stephenville are presently offered by Provincial Airlines Limited, Labrador Airways Limited 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 Stephenville by Royal, more than one flight per week will continue to be offered at Stephenville by more than one licensee. Therefore, section 64 of the CTA does not apply with respect to the discontinuance of service by Royal at Stephenville.

With respect to the discontinuance of service by Royal at Deer Lake, the Agency notes that following this discontinuance, there will be only one licensee offering at least one flight per week at this point. Accordingly, the Agency has determined that section 64 of the CTA applies with respect to the discontinuance of service by Royal at Deer Lake.

Pursuant to paragraph 80(1)(b) 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 an action taken by the person is as effective as actual compliance with the provision.

The Agency notes that the service offered by Royal at Deer Lake is temporary in nature and that by letter dated June 12, 2000, Royal advised the Minister of Transport of its proposed temporary domestic service. This letter was also copied to the Minister of Transport for the Province of Newfoundland. In addition, Royal provided the Agency with copies of advertisements from the local newspapers at Stephenville and Deer Lake promoting the proposed temporary domestic service and indicating that this service is available until September 8, 2000 only.

The Agency has carefully considered this matter and is of the opinion that, in light of the foregoing circumstances, Royal has substantially complied with subsection 64(1) of the CTA in respect of its proposed discontinuance of service at Deer Lake. Accordingly, the Agency, pursuant to paragraph 80(1)(b) of the CTA, hereby exempts Royal from the application of subsection 64(1) of the CTA with respect to its proposed discontinuance of service at Deer Lake.