Order No. 2002-A-39

January 24, 2002

File Nos. M4210/R178-1
M4210/R178-3
M4210/R178-2
M4210/R178-4-1
M4210/R178-4-2

Under Licence No. 972106, Royal Aviation Inc. carrying on business as Royal, Conifair, Royal Cargo, Royal Canada and Royal Airlines (hereinafter the Licensee) is authorized to operate a domestic service, large aircraft and a domestic service, all-cargo aircraft.

Under Licence No. 975057, the Licensee is authorized to operate a scheduled international service, large aircraft, between points in Canada and points in the United States of America.

Under Licence No. 977169, the Licensee is authorized to operate a non-scheduled international service, large aircraft and a non-scheduled international service, all-cargo aircraft, to transport traffic on a charter basis between Canada and any other country.

Under Licence No. 000064, the Licensee is authorized to operate a scheduled international service, large aircraft, in accordance with the Agreement between the Government of Canada and the Government of the United Kingdom of Great Britain and Northern Ireland concerning Air Services signed on June 22, 1988.

Under Licence No. 000065, the Licensee is authorized to operate a scheduled international service, large aircraft, in accordance with the Air Transport Agreement between the Government of Canada and the Government of the French Republic signed on June 15, 1976, as amended.

The certificate of insurance of the Licensee on file with the Canadian Transportation Agency (hereinafter the Agency) has expired.

Pursuant to subparagraphs 61(a)(iii), 69(1)(a)(iii) and 73(1)(a)(iii) of the Canada Transportation Act, S.C., 1996, c. 10 (hereinafter the CTA), the Licensee must establish to the satisfaction of the Agency that it has the prescribed liability insurance coverage in respect of the services to be provided under the licences.

The Agency has determined that, in respect of the services for which the licences were issued, the Licensee ceases to meet the requirements of subparagraphs 61(a)(iii), 69(1)(a)(iii) and 73(1)(a)(iii) of the CTA.

Pursuant to subsections 63(1) and 72(1) and paragraph 75(1)(a) of the CTA, the Agency must suspend or cancel a domestic licence, a scheduled international licence and a non-scheduled international licence where the Agency has made such a determination.

The Agency is of the opinion that in the present circumstances it should suspend immediately the said licences and provide the Licensee with a period of thirty (30) days to show cause why the said licences should not be cancelled.

Accordingly, the Agency, pursuant to subsections 63(1) and 72(1) and paragraph 75(1)(a) of the CTA, hereby suspends Licence Nos. 972106, 975057, 977169, 000064 and 000065.

In addition, the Licensee is provided with a period of thirty (30) days from the date of this Order to show cause why the said licences should not be cancelled pursuant to subsections 63(1) and 72(1) and paragraph 75(1)(a) of the CTA.

This Order shall be affixed to Licence Nos. 972106, 975057, 977169, 000064 and 000065 and the suspension of the licences shall remain in effect until further order of the Agency.