Order No. 2006-A-664

December 15, 2006

File No. M4210/A1009-1

Air Sherbrooke Ltd. (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 December 14, 2006.

Section 59 of the Canada Transportation Act (hereinafter the CTA) prohibits the applicant from selling, causing to be sold or publicly offering for sale in Canada an air service without holding a licence in respect of that service. The applicant is currently in the process of applying for a licence to operate a domestic service, small aircraft; therefore, an exemption from the application of section 59 of the CTA is necessary in order that the applicant can sell, cause to be sold or publicly offer for sale in Canada the proposed air service prior to obtaining the applied for licence.

The applicant states that it signed an agreement with 2553-4330 Québec Inc. carrying on business as Aéropro for the operation of a domestic service effective January 8, 2007. The applicant submits that it is in the process of obtaining all necessary approvals and it requests this exemption to allow it to sell its domestic service and begin its operations in January 2007.

The Agency has carefully reviewed and considered the application and is of the opinion that in order for the proposed service to be viable, the applicant must be able to offer seats for sale at the earliest possible date. Therefore, the Agency finds that compliance by the applicant with section 59 of the CTA is impractical in the present circumstances.

Accordingly, the Agency, pursuant to paragraph 80(1)(c) of the CTA, hereby exempts the applicant from the application of section 59 of the CTA, thereby permitting the applicant to sell, cause to be sold or publicly offer for sale in Canada a domestic service, small aircraft effective from the date of this Order, without holding the required licence, subject to the following conditions:

1. All passengers shall be notified that the domestic service, small aircraft is subject to government approval. All future advertising in any media, whether in writing or by telecommunication, shall also include this information.
2. The exemption authorized herein does not relieve the applicant from the requirement to hold a licence in respect of the service to be provided and, accordingly, no flights shall be operated until the appropriate licence has been issued.
3. Should the domestic licence, small aircraft not issue, the applicant shall arrange to provide alternative air transportation by an appropriately licensed air carrier, at no additional cost to all passengers who have made reservations with the applicant. If such arrangements are not possible or acceptable to the passengers, the applicant shall provide a full refund of all monies paid by them.
4. All revenues from the sale of a domestic service, small aircraft shall be deposited and held in a trust account until the issuance of the licence or until alternative transportation arrangements are finalized.

The exemption granted herein do not exempt the applicant from the requirements of other legislative acts or regulations, including those of Transport Canada.