Decision No. 38-A-1997

February 4, 1997

File Nos. M4205/A603-5-1
M4895/A603-4-1

Docket Nos. 962458
962459

Astro-Tech Management Ltd. carrying on business as Astro-Tech Aviation (hereinafter the Licensee) has applied to the Canadian Transportation Agency (hereinafter the Agency) for the suspension set out in the title. The application was received on October 10, 1996.

Under NTA Licence No. 940117, the Licensee is authorized to operate a domestic service.

Under NTA Licence No. 940141, the Licensee is authorized to operate a Class 9-4 Charter non-scheduled international service using fixed wing aircraft in Groups A and B.

With respect to the services authorized under the aforementioned licences, the Agency notes that the Canada Transportation Act, S.C., 1996, c. 10 (hereinafter the CTA) establishes a uniform domestic licensing regime for all of Canada. Further, as a result of amendments made to the Air Transportation Regulations, SOR/88-58, the classification of aircraft and air services has been amended. Accordingly, under the new Canadian domestic licensing regime, the Licensee will be authorized to operate a domestic service, small aircraft. In addition, the Licensee's Class 9-4 Charter non-scheduled international service is now considered to be a non-scheduled international service, small aircraft.

It should be noted that as a result of the coming into force of the CTA, replacement licences are being issued to licensees who establish to the satisfaction of the Agency, as of July 1, 1996, that they met the applicable requirements set out in the CTA. On July 1, 1996, the Licensee satisfied the requirements set out in paragraphs 61(a) and 73(1)(a) of the CTA. Accordingly, the Agency will issue replacement Licence Nos. 972080 and 977147 to the Licensee authorizing it to operate a domestic service, small aircraft and a non-scheduled international service, small aircraft, respectively.

Pursuant to paragraph 63(2)(b) of the CTA, the Agency may, subject to section 64, suspend or cancel a domestic licence in accordance with a request from the Licensee for the suspension or cancellation. Section 64 of the CTA requires that the Licensee give notice of the proposal to discontinue the service and that the Licensee shall not implement the proposal until the expiration of sixty (60) days after the notice is given.

The Agency has reviewed the matter and in light of the fact that the Licensee's prescribed liability insurance coverage has lapsed, is of the view that compliance by the Licensee with section 64 of the CTA is unnecessary. Accordingly, pursuant to paragraph 80(1)(c) of the CTA, the Agency hereby exempts the Licensee from the application of section 64 of the CTA.

In addition, pursuant to paragraph 75(2)(b) of the CTA, the Agency may suspend or cancel a non- scheduled international licence in accordance with a request from the Licensee for the suspension or cancellation.

The Agency has considered this application and in accordance with the request of the Licensee will suspend Licence Nos. 972080 and 977147.

Pursuant to paragraphs 63(2)(b) and 75(2)(b) of the CTA, as applicable, Licence Nos. 972080 and 977147 are hereby suspended. Further, to reinstate the suspended licences, the Licensee is hereby required to file an application to that effect within one year from the date of this Decision. If, at that time, upon consideration of the application, the Agency determines that the Licensee meets the requirements set out in paragraphs 61(a) and 73(1)(a) of the CTA, specifically that the Licensee is Canadian, holds a Canadian aviation document and has prescribed liability insurance coverage, the Agency shall lift the suspension.

However, within one year from the date of this Decision, if the Agency determines that, in respect of the services for which the licences were issued, the Licensee does not meet any of the requirements set out in subparagraphs 61(a)(i) to (iii) and 73(1)(a)(i) to (iii) of the CTA, the said licences shall be cancelled pursuant to subsection 63(1) and paragraph 75(1)(a) of the CTA, as applicable.

This Decision shall form part of Licence Nos. 972080 and 977147 and shall remain affixed thereto as long as the said Decision is in force.