Order No. 2002-A-549

December 24, 2002

File No. M4211/H176-2

Under Licence No. 980161, Holliday Air, Inc. (hereinafter the Licensee) is authorized to operate a non-scheduled international service to transport traffic on a charter basis between points in the United States of America and points in Canada.

Pursuant to subsection 15(3) of the Air Transportation Regulations, SOR/88-58, as amended (hereinafter the ATR), every holder of a non-scheduled international licence shall, within thirty (30) days after each anniversary date of the licence, file with the Canadian Transportation Agency (hereinafter the Agency) a Declaration of Continuance of Qualifications in the form set out in Schedule II of the ATR (hereinafter Schedule II). Accordingly, the Licensee was required to complete, sign, date and return Schedule II to the Agency by November 12, 2002.

By LET-A-337-2002 dated November 18, 2002, the Licensee was provided with a period of thirty (30) days from the date of that letter to submit Schedule II or to show cause why Licence No. 980161 should not be suspended or cancelled for failure to comply with subsection 15(3) of the ATR.

To date, the Licensee has failed to either file the required Schedule II or to show cause why its licence should not be suspended or cancelled.

The Agency has determined that in respect of the service for which the licence was issued, the Licensee has contravened subsection 15(3) of the ATR by not filing the required Schedule II.

Pursuant to paragraph 75(2)(a) of the Canada Transportation Act (hereinafter the CTA), the Agency may suspend or cancel 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 the said licence and provide the Licensee with a period of thirty (30) days to show cause why the said licence should not be cancelled.

Accordingly, the Agency, pursuant to paragraph 75(2)(a) of the CTA, hereby suspends Licence No. 980161.

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 licence should not be cancelled pursuant to paragraph 75(2)(a) of the CTA.

This Order shall be affixed to Licence No. 980161 and the suspension of the licence shall remain in effect until further order of the Agency.