Order No. 2023-A-28
APPLICATION by AirMédic Inc. for an exemption from the application of section 58 of the Canada Transportation Act, S.C., 1996, c. 10, as amended (CTA).
AirMédic Inc. has applied to the Canadian Transportation Agency (Agency) for an exemption to allow for the transfer of licences from AirMédic Inc. carrying on business as AirMédic InterH Inc. to AirMédic Inc.
AirMédic Inc. carrying on business as AirMédic InterH Inc. is licensed to operate a domestic service, small aircraft and 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.
AirMédic Inc. carrying on business as AirMédic InterH Inc, was acquired by Dessercom inc. following a corporate reorganization that resulted in the transfer of the business to a new entity. As a result, a new corporate entity named AirMédic Inc. will continue to operate the business.
With respect to the requirement to be Canadian, the Agency is satisfied, based on the information on file, that AirMédic Inc. meets the Canadian ownership and control requirements as defined in subsection 55(1) of the CTA.
The Agency also notes that AirMédic Inc. holds the prescribed liability insurance coverage.
The Agency also notes that AirMédic Inc. has a valid Canadian aviation document (CAD) under its name.
The Agency also notes that AirMédic Inc. has submitted the necessary information related to the transaction with Dessercom inc.
The Agency is, therefore, satisfied that AirMédic Inc. meets the requirements of section 61 and subsection 73(1) of the CTA.
The Agency has considered the matter and finds that this transaction, as described by AirMédic Inc., resulted in a corporate restructuring that was then followed by an acquisition. Therefore, compliance by AirMédic Inc. with section 58 of the CTA is unnecessary in the present circumstances.
Accordingly, the Agency, pursuant to paragraph 80(1)(c) of the CTA, exempts AirMédic Inc. from the application of section 58 of the CTA as compliance with it is unnecessary, undesirable or impractical.
AirMédic Inc. will need to comply, on an ongoing basis, with the licensing requirements of the CTA.
Member(s)
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