Order No. 2010-A-665

December 30, 2010

File Nos. M4210/B19-1
M4210/B19-2

Bearskin Lake Air Service Ltd. (Bearskin Lake) applied to the Canadian Transportation Agency (Agency) for an exemption to allow for the transfer of licences to Bearskin Lake Air Service LP, as represented by its general partner, Bearskin GP Inc., carrying on business as Bearskin Airlines (Bearskin LP), effective as of January 1, 2011.

Under Licence No. 972214, Bearskin Lake is authorized to operate a domestic service, small, aircraft.

Under Licence No. 977302, Bearskin Lake is authorized to operate a non-scheduled international service, small aircraft, to transport traffic on a charter basis between Canada and any other country.

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

Pursuant to paragraph 80(1)(c) of the CTA, the Agency may exempt a person from the application of a provision of the CTA where it is of the opinion that compliance with the provision by the person is unnecessary, undesirable or impractical.

According to the application, Bearskin Lake states the Exchange Income Corporation (EIC) is undergoing an arrangement with Bearskin where a new limited partnership Bearskin LP will be created following an acquisition of Bearskin by EIC. Bearskin LP will carry on the domestic and non-scheduled international services currently operated by Bearskin. The proposed transfer of the existing air carrier operations to the limited partnership is in the nature of an internal restructuring.

With respect to the requirement to be Canadian, the Agency is satisfied, based on the information and documents filed, that Bearskin LP would meet the Canadian ownership and control requirements as defined in subsection 55(1) of the CTA upon the execution of the proposed transaction.

The Agency also notes that Bearskin LP has the prescribed liability insurance coverage and holds a valid Canadian aviation document both effective January 1, 2011.

The Agency is therefore satisfied that, as of January 1, 2011, Bearskin LP will meet the requirements of section 61 and subsection 73(1) of the CTA.

The proposed transaction was executed with an effective date of January 1, 2011. Bearskin LP has filed executed copies of documents pertaining to the transaction.

The Agency has considered the matter and finds that the proposed reorganization, as described by Bearskin, is in the nature of an internal restructuring and that compliance by Bearskin with section 58 of the CTA is impractical in the present circumstances.

Accordingly, the Agency, pursuant to paragraph 80(1)(c) of the CTA, exempts Bearskin from the application of section 58 of the CTA.

Licence Nos. 972214 and 977302 will be transferred from Bearskin to Bearskin LP. However, pursuant to paragraph 28(1)(b) of the CTA, the Agency may in any order direct that the order or a portion or provision of it shall come into force on the happening of any contingency, event or condition specified in the order.

The Agency directs that the transfer of these licences shall come into force on January 1, 2011.

New documents of licence will be issued to Bearskin Lake Air Service LP, as represented by its general partner, Bearskin GP Inc., carrying on business as Bearskin Airlines.