Decision No. 48-A-2008

February 1, 2008

APPLICATION by Presidential Jets, LLC of Fort Lauderdale, Florida, United States of America, pursuant to subsection 73(2) of the Canada Transportation Act, S.C., 1996, c. 10, as amended, for a licence to operate a non-scheduled international service.

File No. M4211/P380-2

Presidential Jets, LLC (hereinafter the applicant) has applied to the Canadian Transportation Agency (hereinafter the Agency) for a licence to operate the service set out in the title. The application was complete on January 22, 2008.

The applicant has been designated to operate charter flights in accordance with Annex III of the Air Transport Agreement between the Government of Canada and the Government of the United States of America signed on March 12, 2007 (hereinafter the Agreement).

In order for a licence to be issued, the Agency must be satisfied, as provided for in paragraph 73(1)(b) of the Canada Transportation Act (hereinafter the CTA), that the applicant has not contravened section 59 of the CTA to the effect that no person has sold, caused to be sold or publicly offered for sale in Canada an air service within the preceding twelve months unless the person held a licence in respect of that service.

In addition, paragraph 57(a) of the CTA provides that no person shall operate an air service unless that person holds a licence issued in respect of that service.

In its affidavit dated January 8, 2008, the applicant has advised the Agency that due to a corporate restructuring and an inadvertent oversight, Presidential Jets, LLC may have, on one or more occasions, contravened section 59 of the CTA to the effect that Presidential Jets, LLC sold, caused to be sold, or publicly offered for sale in Canada transportation in respect of the applied for air service without holding the required licence.

On January 16, 2008, Agency staff requested further details with respect to the possible contravention of section 59 of the CTA.

In response, the applicant provided a list of flights operated since January 23, 2007 without holding a non-scheduled international licence. The applicant also confirmed that all sales for the flights operated since January 23, 2007 were made outside Canada.

The Agency has carefully considered the matter and finds that in operating a non-scheduled international service without holding a licence in respect of that service, the applicant has contravened paragraph 57(a) of the CTA. Also the Agency considered the statement that all sales took place outside Canada and therefore finds that the applicant did not contravene section 59 of the CTA.

The Agency has reviewed the application and is satisfied that the applicant meets the requirements of subsection 73(2) of the CTA. The Agency is also satisfied that the pertinent terms and conditions of the Agreement have been complied with.

Accordingly, the Agency will issue to the applicant a licence to operate a non-scheduled international service in accordance with the Agreement.

Pursuant to subsection 74(1) of the CTA, the Agency deems it appropriate to include the terms and conditions set out below in the licence to be issued pursuant to this Decision.

The licence to be issued pursuant to this Decision shall be subject, in addition to the conditions prescribed by the Air Transportation Regulations, SOR/88-58, as amended (hereinafter the ATR), to the requirements to hold a Canadian aviation document issued by the Minister of Transport, and to have prescribed liability insurance coverage as set out in section 7 of the ATR, and to the following terms and conditions to which the licence is made subject pursuant to subsection 74(1) of the CTA:

1. The Licensee is authorized to operate charter flights in accordance with Annex III of the Agreement.
2. The Licensee is prohibited from carrying local traffic between points in Canada.
3. The operation of the non-scheduled international service authorized herein shall be conducted subject to the provisions of the Agreement and to any arrangements related thereto as may be agreed to between Canada and the United States of America.
4. Unless terminated at an earlier date in accordance with the CTA or the Agreement, this licence shall terminate at the termination or expiration of the Agreement, or upon the effective date of any amendment to the Agreement which shall have the effect of eliminating the rights herein authorized.

With respect to the contravention set out above, the issuance of this licence does not in any way preclude any actions that may be taken against the applicant pursuant to the Canadian Transportation Agency Designated Provisions Regulations.

Members

• John Scott
• J. Mark MacKeigan