Order No. 2001-A-570

December 7, 2001

File Nos. M4211/H11-3
M4211/H11-2

Under Licence No. 975082, Harbor Airlines, Inc. (hereinafter the Licensee) is authorized to operate a scheduled international service between points in the United States of America and points in Canada.

Under Licence No. 977238, the Licensee is authorized to operate a non-scheduled international service to transport traffic on a charter basis between points in United States of America and points in Canada.

By Order No. 2001-A-336 dated July 16, 2001, Licence Nos. 975082 and 977238 were suspended pursuant to subsection 72(1) and paragraph 75(1)(b) of the Canada Transportation Act, S.C., 1996, c. 10 (hereinafter the CTA), for failure by the Licensee to file with the Canadian Transportation Agency (hereinafter the Agency) a valid certificate of insurance. The Licensee was provided with a period of thirty (30) days from the date of the Order to show cause why Licence Nos. 975082 and 977238 should not be cancelled pursuant to subsection 72(1) and paragraph 75(1)(b) of the CTA.

To date, the Licensee has failed to either file with the Agency the required certificate of insurance or to show cause why its licences should not be cancelled.

The Agency has determined that, in respect of the services for which the licence was issued, the Licensee does not meet the requirement 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 has considered the matter and, pursuant to subsection 72(1) and paragraph 75(1)(b) of the CTA, and in accordance with the Air Transport Agreement between the Government of Canada and the Government of the United States of America signed on February 24, 1995, hereby cancels Licence Nos. 975082 and 977238.