Order No. 2008-A-415

October 10, 2008

File No. M4210/N300-1

1263343 Alberta Inc. carrying on business as NewAir & Tours (the applicant) has applied to the Canadian Transportation Agency (the Agency) for the exemption set out in the title. The application was complete on September 25, 2008.

Section 59 of the Canada Transportation Act (hereinafter the CTA) states that no person shall sell, cause to be sold or publicly offer for sale in Canada an air service unless, if required under Part II of the CTA, a person holds a licence issued under that part and that licence is not suspended. The applicant has applied for a licence to operate a domestic service, large aircraft. However, as the application is not yet complete, an exemption from the application of section 59 of the CTA is necessary in order to allow the applicant to 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 submits that it has been approached by a major oilsands developer to provide its construction workers with regular air transportation between various points in Canada and its worksite near Fort McMurray, Alberta. The applicant proposes to enter into an agreement with the developer as soon as possible, for the provision of such services.

The applicant states that to ensure the viability of the air service, it must be able to begin selling it at the earliest possible date. The agreement would provide much needed financial stability to the applicant's developing operation and would mitigate the risks associated with its business plan. The applicant also submits that if it was required to wait until it obtains the licence before proceeding, it may lose the important business opportunity potentially secured by the agreement.

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 the applied for domestic service 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, solely for the purpose of the applicant entering into the proposed agreement with the above noted developer with respect to a domestic service, large aircraft, effective from the date of this Order, without holding the required licence, subject to the following conditions:

1. 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.
2. All revenues from the sale of a domestic service, large 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 does not exempt the applicant from the requirements of other legislative acts or regulations, including those of Transport Canada.