Order No. 2005-A-55

February 4, 2005

File Nos. M4210/B262-1
M4210/B262-2
M4210/M291-1
M4210/M291-2

Beaver Air Services Limited Partnership, by its General Partner, BASLP Management Ltd. carrying on business as Beaver Air Services Limited Partnership (hereinafter the applicant), has applied to the Canadian Transportation Agency (hereinafter the Agency) for the exemption set out in the title. The application was received on February 2, 2005.

Under Licence No. 990108, the applicant is authorized to operate a domestic service, small aircraft.

Under Licence No. 990109, which was suspended by Order No. 2004-A-398 dated September 15, 2004, the applicant is authorized to operate a non-scheduled international service, small aircraft.

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

The applicant submitted evidence that BASLP Management Ltd. ceased to be its General Partner and that Missinippi Airways Ltd. (now Missinippi Management Ltd.) became its General Partner on July 1, 2001. The applicant also advises that the change was due to a reorganization or restructuring of the Limited Partnership and has in no way changed the entities or operation of the Limited Partnership in whose name the licence was first issued. The applicant adds that its failure to notify the Agency of this change in General Partner was due to an oversight and lack of understanding of the requirements under the CTA as it thought the licence was issued in the name of the Limited Partnership and not in the name of the General Partner.

The Agency is of the opinion that the General Partner, Missinippi Management Ltd. is a new entity distinct from the former General Partner, BASLP Management Ltd. The Agency notes that both the name of the Limited Partnership and that of the General Partner appear on the licence. The Agency finds that since July 1, 2001 and until February 2, 2004, the applicant operated a domestic air service, small aircraft, while its domestic licence was not in the correct legal name. The Agency also finds that the applicant operated an international non-scheduled service, small aircraft, from July 1, 2001 until September 14, 2004 while its international non-scheduled licence was not in the correct legal name. These operations were in contravention of paragraph 57(a) of the CTA. However, in light of the explanation provided by the applicant, the Agency is of the opinion that its failure to advise the Agency before the change occurred was not a wilful attempt to avoid compliance with legislative and regulatory requirements.

However, the applicant should be aware that the Agency considers contraventions of provisions of the CTA or the Air Transportation Regulations, SOR/88-58, as amended, to be serious and will take appropriate punitive action should any such contraventions occur in the future.

The Agency has considered the application and the material filed in support thereof. The Agency notes that Beaver Air Services Limited Partnership, by its General Partner, Missinippi Management Ltd. carrying on business as Missinippi Airways and Missinippi Air-Care holds a valid Canadian aviation document and has prescribed liability insurance coverage. The Agency is of the opinion that compliance by Beaver Air Services Limited Partnership, by its General Partner, Missinippi Management Ltd. carrying on business as Missinippi Airways and Missinippi Air-Care with section 58 of the CTA is impractical in the present circumstances.

Accordingly, pursuant to paragraph 80(1)(c) of the CTA, the Agency hereby exempts Beaver Air Services Limited Partnership, by its General Partner, Missinippi Management Ltd. carrying on business as Missinippi Airways and Missinippi Air-Care from the application of section 58 of the CTA.

Accordingly, Licence Nos. 990108 and 990109 are hereby transferred from Beaver Air Services Limited Partnership, by its General Partner, BASLP Management Ltd. carrying on business as Beaver Air Services Limited Partnership to Beaver Air Services Limited Partnership, by its General Partner, Missinippi Management Ltd. carrying on business as Missinippi Airways and Missinippi Air-Care.

With respect to the contraventions set out above, the granting of this exemption does not in any way preclude any actions that may be taken against the applicant pursuant to the Canadian Transportation Agency Designated Provisions Regulations.