Order No. 2000-A-462

November 30, 2000

File Nos. M4210/C519-1
M4210/C519-2
M4210/C519-3

Under Licence No. 972097, Air Nova Inc. also carrying on business as Air Alliance (hereinafter Air Nova) is authorized to operate a domestic service, small aircraft, a domestic service, medium aircraft and a domestic service, large aircraft.

Under Licence No. 975055, Air Nova is authorized to operate a scheduled international service, small aircraft, a scheduled international service, medium aircraft and a scheduled international service, large aircraft, between points in Canada and points in the United States of America.

Under Licence No. 977160, Air Nova is authorized to operate a non-scheduled international service, medium aircraft; and a non-scheduled international service, large aircraft, to transport traffic on a charter basis between points in Canada and any other country.

Section 58 of the Canada Transportation Act (hereinafter the CTA) provides that a licence issued for the operation of an air service is not transferable.

On November 21, 2000, Air Canada advised the Canadian Transportation Agency (hereinafter the Agency) that it was restructuring the commercial air services of its regional air carriers, namely, Air Nova; Air Ontario Inc. carrying on business as Air Ontario; Air BC Limited carrying on business as AirBC; and Canadian Regional Airlines (1998) Ltd. carrying on business as Canadian Regional.

As part of the restructuring, on December 1, 2000 the employees, operations and assets of Air Nova will be transferred to Air Canada Regional Inc. (hereinafter Air Canada Regional), a company incorporated on October 6, 2000, wholly-owned by Air Nova. Air Canada Regional will continue to offer the publicly available air services of Air Nova using the latter's aircraft, assets and employees. Air Canada Regional will operate the services under the following trade names: Air Nova, Air Alliance, Air Ontario, AirBC, and Canadian Regional.

The Agency has carefully reviewed all of the material submitted by Air Canada in support of its application and is satisfied that the proposed corporate reorganization of Air Canada's regional carriers is in the nature of an internal restructuring.

Accordingly, the Agency is of the opinion that compliance by Air Nova with section 58 of the CTA is unnecessary in the present circumstances.

The Agency, pursuant to paragraph 80(1)(c) of the CTA, hereby exempts Air Nova from the application of section 58 of the CTA.

The Agency also notes that Air Canada Regional holds a valid Canadian aviation document effective December 1, 2000 and has prescribed liability insurance coverage.

In light of the above, Licence Nos. 972097, 975055 and 977160 are hereby transferred from Air Nova to Air Canada Regional Inc. carrying on business as Air Nova, Air Alliance, Air Ontario, AirBC and/or Canadian Regional.

Pursuant to paragraph 28(1)(a) of the CTA, the Agency directs that the transfer of these licences shall come into force on December 1, 2000.