Decision No. 275-A-2005

May 6, 2005

File No. M4835-45-1

Nolinor, on behalf of itself and Air Saint-Pierre, has applied to the Canadian Transportation Agency (hereinafter the Agency) for the approval set out in the title. The application was received on April 4, 2005 and was amended on April 5, 2005.

Air Saint-Pierre advises that the request to wet lease an aircraft with flight crew provided by Nolinor is due to the fact that its ATR 42 aircraft must undergo its annual heavy maintenance schedule.

Nolinor has also requested an exemption from the application of subsection 8.2(2) of the Air Transportation Regulations (hereinafter the ATR), which requires the filing of an application for approval at least 45 days before the first planned flight.

Under Licence No. 965002, Air Saint-Pierre is authorized to operate a scheduled international service between the points Saint-Pierre and Miquelon, France; and Halifax and Sydney, Nova Scotia and Montréal, Quebec, Canada.

Under Licence No. 967001, Air Saint-Pierre is authorized to operate a non-scheduled international service between points in Saint-Pierre and Miquelon, France and points in Canada.

Condition No. 3 of Licence No. 967001 states:

The Licensee is authorized to transport passengers and their baggage at a toll per unit to serve the following points consistent with traffic requirements and operating conditions:

1. Saint-Pierre and Miquelon, France and Sydney, Nova Scotia, Canada;
2. Saint-Pierre and Miquelon, France and St. John's, Newfoundland, Canada;
3. Saint-Pierre and Miquelon, France and Moncton, New Brunswick, Canada.

With respect to the request for an exemption from the application of subsection 8.2(2) of the ATR, the Agency has considered the request and is of the opinion that compliance by Nolinor with subsection 8.2(2) of the ATR is impractical in this case. Accordingly, the Agency, pursuant to paragraph 80(1)(c) of the Canada Transportation Act (hereinafter the CTA), hereby orders that Nolinor be exempt from the application of subsection 8.2(2) of the ATR.

The Agency has reviewed and considered the application and the material filed in support thereof and is satisfied that it meets the remaining requirements of section 8.2 of the ATR.

Accordingly, the Agency, pursuant to paragraph 60(1)(b) of the CTA and section 8.2 of the ATR, hereby approves the use by Air Saint-Pierre of aircraft and flight crew provided by Nolinor, and the provision by Nolinor of such aircraft and flight crew to Air Saint-Pierre, to permit Air Saint-Pierre to provide its non-scheduled international air service and its scheduled international air service authorized under Licence Nos. 967001 et 965002, respectively, between France and Canada using aircraft and flight crew provided by Nolinor for flights between Saint-Pierre and Miquelon and St. John's; and between Saint-Pierre and Miquelon and Montréal and Halifax from May 15 to May 23, 2005, subject to the following conditions:

1. Air Saint-Pierre shall continue to hold the required licence authorities.
2. Commercial control of the flights shall be maintained by Air Saint-Pierre. Nolinor shall maintain operational control of the flights and shall receive payment based on the rental of aircraft and crew and not on the basis of the volume of traffic carried or other revenue-sharing formula.

Air Saint-Pierre and Nolinor are reminded to advise the Agency in advance of any changes to the information provided in support of the subject application.

Air Saint-Pierre and Nolinor are further reminded of the continuing requirement to comply with sections 8.2 and 8.5 of the ATR.

The approval granted herein does not exempt Air Saint-Pierre and Nolinor from the requirements of other legislative acts or regulations, including those of Transport Canada.