Order No. 2006-A-674

Order No. 2006-A-674 is no longer in effect as of January 12, 2007.

December 22, 2006

File No. M4210-4/A

Pursuant to paragraph 57(a) of the Canada Transportation Act, S.C., 1996, c. 10 (hereinafter the CTA), no person shall operate an air service unless, in respect of that service, the person holds a licence issued under the CTA. A licence is issued when certain important requirements set out in the CTA are met, including the requirements to hold a valid Canadian aviation document and to have prescribed liability insurance coverage.

Subsection 55(1) of the CTA, defines "air service" as follows:

"air service" means a service, provided by means of an aircraft, that is publicly available for the transportation of passengers or goods, or both;

Hope Air, a charitable organization, is arranging free flights to recognized health facilities for medical treatment unavailable in a patient's home community. The vast majority of flights arranged by Hope Air are provided by Canada's commercial airlines (Commercial Flight Program). Flights are also provided by companies that donate empty seats on their corporate/business flights (Corporate Aviation Program), and by volunteer pilots and aircraft owners that donate their time and aircraft (Volunteer Pilot Program). These services are provided free of charge, subject to a processing fee.

The Canadian Transportation Agency (hereinafter the Agency) has carefully examined the nature of Hope Air's operations and notes, among other things, that it arranges transportation for patients to medical treatment centres and reimburses some of the costs incurred by its volunteer pilots.

Based on its review of publicly available information (including Hope Air's Web site), as well as additional information provided by Hope Air, the Agency has determined that:

1. With regard to the Commercial Flight Program, the Agency is satisfied that the air service arranged by Hope Air and operated by commercial air carriers that already hold Agency licences meet the prescribed regulatory requirements.
2. with regard to its Corporate Aviation Program and Volunteer Pilot Program, Hope Air is operating a publicly available air service within the meaning of subsection 55(1) of the CTA, in contravention of paragraph 57(a) of the CTA.

Pursuant to section 26 of the CTA, the Agency may require a person to refrain from doing any thing that the person is prohibited from doing under any Act of Parliament that is administered in whole or in part by the Agency.

Accordingly, the Agency, pursuant to section 26 of the CTA, hereby orders Hope Air to cease and desist from operating a publicly available air service, namely its Corporate Aviation Program and its Volunteer Pilot Program, without holding a licence for that service.

However, given the nature of Hope Air's activities, the Agency will expeditiously process an application made by Hope Air that would result in it being allowed to resume its affected operations.

This Order shall remain in effect until further order of the Agency.

This Order takes effect on December 21, 2006, the date on which it was communicated verbally to Hope Air.