Order No. 2005-A-43

February 1, 2005

File No. M4211/S471-2

Under Licence No. 010120, Southeast Airlines, 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.

By Order No. 2004-A-557 dated December 14, 2004, Licence No. 010120 was suspended pursuant to paragraph 75(1)(b) of the Canada Transportation Act, S.C., 1996, c. 10 (hereinafter the CTA), as the insurance coverage prescribed in the Licensee's certificate of insurance on file with the Canadian Transportation Agency (hereinafter the Agency) had been cancelled. The Licensee was provided with a period of thirty (30) days from the date of the Order to show cause why Licence No. 010120 should not be cancelled pursuant to paragraph 75(1)(b) of the CTA.

To date, the Licensee has failed to either establish to the satisfaction of the Agency that it has the prescribed insurance coverage or to show cause why its licence should not be cancelled.

The Agency has determined that, in respect of the service for which the licence was issued, the Licensee does not meet the requirement of subparagraph 73(1)(a)(iii) of the CTA.

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

The Agency has considered the matter and, pursuant to 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 No. 010120.