Order No. 2018-A-92

Skyservice has applied to the Canadian Transportation Agency (Agency) for an exemption to allow for the transfer of its licences.

Skyservice is licensed to operate a domestic service, small aircraft.

Skyservice is licensed to operate a non-scheduled international service, small aircraft.

Section 58 of the 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 the Agency is of the opinion that compliance with the provision by the person is unnecessary, undesirable or impractical.

Skyservice intends to amalgamate with its parent company, Evolve Business Aviation Inc. (Evolve), creating the proposed post‑amalgamation company Skyservice (amalgamated company) that will carry on the existing business of Skyservice. The restructuring will not affect Skyservice's standing to hold licences under the CTA, its operations or its name.

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

Transport Canada confirmed that Skyservice's existing Air Operator Certificate will continue to be valid post-restructuring,

The Agency is satisfied that Skyservice meets the requirements of section 61 and subsection 73(1) of the CTA.

To ensure that the proposed corporate restructuring has not changed in any material or substantial way from that reported to the Agency, the Agency has requested and Skyservice has agreed to file copies of certain documents, once finalized, that relate to the proposed internal corporate restructuring. The Agency orders Skyservice to file with the Agency all of the documents that relate to the proposed internal corporate restructuring, upon signature.

The Agency has considered the matter and finds that the proposed transfer, as described by Skyservice, is in the nature of a corporate restructuring. Therefore, compliance by Skyservice 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 Skyservice from the application of section 58 of the CTA.

Licence Nos. 000060 and 000061 will be transferred from Skyservice to the new amalgamated company. 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 upon the execution of the proposed restructuring. Skyservice shall file all documentation related to the completed transaction.

Skyservice (amalgamated company) will need to comply, on an ongoing basis, with the licensing requirements of the CTA.