Decision No. 639-A-1991

December 31, 1991

File Nos. M4895-C259
M4205/C259
M4205/A460

Ontario Express Ltd. carrying on business as Canadian Partner/Partenaire Canadien has applied to the National Transportation Agency for the reinstatement, suspension and cancellation set out in the title. The application was received on November 25, 1991.

The application indicates that Ontario Express Ltd. carrying on business as Canadian Partner/ Partenaire Canadien is being reorganized with its wholly owned subsidiary Frontier Air Ltd. and that carrier's wholly owned subsidiary 174590 Canada Inc. The amalgamation of these three companies into a company named Ontario Express Ltd. carrying on business as Canadian Partner/Partenaire Canadien is to become effective January 1, 1992.

Under Licence Nos. 880045, 880046, 882880, 882886, 880528, 880530, 890442, 900342, 880531, 882881, 882882, 882883, 882884, 882885, 900340 and 900341, Frontier Air Ltd. carrying on business as Canadian Frontier is authorized to operate a domestic service as well as various Class 2, 3, 4 and 9-4 services using fixed wing aircraft in Groups B, C and D from various bases and serving various points in the province of Quebec, Ontario and Manitoba. Under Licence No. 910281, 174590 Canada Inc. carrying on business as Air Toronto/Canadian Partner is authorized to operate a domestic service. Under Licence No. 880519, Ontario Express Ltd. carrying on business as Canadian Partner/Partenaire Canadien is authorized to operate a Class 9-4 service.

By Decision No. 179-A-1991 dated April 18, 1991, Licence Nos. 880046, 880528, 880530, 882880, 882881, 882882 and 882884 in respect of the authority to use fixed wing aircraft in Group D were suspended pursuant to subsection 75(2) of the National Transportation Act, 1987, R.S.C., 1985, c. 28 (3rd Supp.) and Licence No. 882886 in respect of the authority to use fixed wing aircraft in Group D was suspended pursuant to subsection 97(2) of the National Transportation Act, 1987. The Licensee was required to file by no later than April 15, 1992 an application to reinstate the suspended services which would establish to the satisfaction of the Agency that it has the qualifications necessary for the issuance of the licences namely that it is a Canadian, holds a Canadian aviation document (operating certificate) and has prescribed liability insurance coverage (a valid certificate of insurance). Alternatively, the Licensee was required to show cause by no later than April 15, 1992 why Licence Nos. 880046, 880528, 880530, 882880, 882881, 882882, 882884 and 882886 in respect of the authority to use fixed wing aircraft in Group D should not be cancelled pursuant to subsections 75(1) and 97(1), as applicable, of the National Transportation Act, 1987. If the application was not filed, failure to meet the requirements and to have filed a valid certificate of insurance would give reasonable grounds to the Agency to believe that, in respect of the services using fixed wing aircraft in Group D authorized under Licence Nos. 880046, 880528, 880530, 882880, 882881, 882882, 882884 and 882886, the Licensee ceases to have the qualifications necessary for the issuance of the licences and/or has contravened section 98 of the National Transportation Act, 1987.

The Agency has reviewed the application and is satisfied that the Licensee has the qualifications necessary for the issuance of Licence Nos. 880046, 880528, 880530, 882880, 882881, 882882, 882884 and 882886 in respect of the authority to use fixed wing aircraft in Group D. Accordingly, the Agency is of the opinion that the suspension imposed by Decision No. 179-A-1991 should be lifted. Moreover, the Agency considers it appropriate to suspend Licence No. 880046 in respect of the authority to serve the points Kapuskasing and Val d'Or and in respect of the authority to use fixed wing aircraft in Group B, Licence No. 880528 in respect of the authority to serve the points Hornepayne, Geraldton, Port Loring and Smoky Lane and in respect of the authority to use fixed wing aircraft in Group B, Licence Nos. 880530, 882880 and 890442 in respect of the authority to use fixed wing aircraft in Group B and Licence Nos. 880531, 882881, 882882, 882883, 882884 and 882885 in their entirety and to cancel Licence Nos. 880045, 910281 and 882886.

The suspension of Licence Nos. 880046, 880528, 880530, 882880, 882881, 882882, 882884 and 882886 in respect of the authority to use fixed wing aircraft in Group D imposed by Decision No. 179-A-1991 dated April 18, 1991 is hereby lifted.

Licence No. 880046 in respect of the authority to serve the points Kapuskasing and Val d'Or and in respect of the authority to use fixed wing aircraft in Group B, Licence No. 880528 in respect of the authority to serve the points Hornepayne, Geraldton, Port Loring and Smoky Lane and in respect of the authority to use fixed wing aircraft in Group B, Licence Nos. 880530, 882880 and 890442 in respect of the authority to use fixed wing aircraft in Group B and Licence Nos. 880531, 882881, 882882, 882883, 882884 and 882885 in their entirety are hereby suspended pursuant to subsection 75(2) of the National Transportation Act, 1987 and Licence No. 880519 in respect of the authority to use fixed wing aircraft in Group B is hereby suspended pursuant to subsection 97(2) of the National Transportation Act, 1987.

To reinstate the suspended services, the Licensee is hereby required to file an application by no later than December 29, 1992. When the Agency is satisfied, based upon material on file or from information specifically requested from the Licensee, that the Licensee is Canadian, holds a Canadian aviation document (operating certificate) and has filed a valid certificate of insurance, the Agency shall reinstate that portion of the licences which is suspended.

Alternatively, if no application is filed, the Licensee is required to show cause by no later than December 29, 1992, why the suspended portion of its licences should not be cancelled pursuant to subsections 75(1) and 97(1), as applicable, of the National Transportation Act, 1987, as failure to meet any of the above requirements would give reasonable grounds to the Agency to believe that, in respect of the authority to serve the points Kapuskasing and Val d'Or and in respect of the authority to use fixed wing aircraft in Group B authorized under Licence No. 880046, and in respect of the authority to serve the points Hornepayne, Geraldton, Port Loring and Smoky Lane and in respect of the authority to use fixed wing aircraft in Group B under Licence No. 880528, and in respect of the services using fixed wing aircraft in Group B authorized under Licence Nos. 880519, 880530, 882880 and 890442 and in respect of the services for which Licence Nos. 880531, 882881, 882882, 882883, 882884 and 882885 are issued, the Licensee ceases to have the qualifications necessary for the issuance of the licences and/or has contravened section 98 of the National Transportation Act, 1987.

Licence Nos. 880045 and 910281 are hereby cancelled pursuant to subsection 75(2) of the National Transportation Act, 1987 and Licence No. 882886 is hereby cancelled pursuant to subsection 97(2) of the National Transportation Act, 1987.

This Decision becomes effective on January 1, 1992 and shall form part of Licence Nos. 880046, 880519, 880528, 880530, 880531, 882880, 882881, 882882, 882883, 882884, 882885 and 890442 and shall remain affixed thereto as long as the said Decision is in force.

ERRATUM

January 24, 1992

Decision No. 639-A-1991 dated December 31, 1991 - Ontario Express Ltd. carrying on business as Canadian Partner/Partenaire Canadien.

File Nos. M4895-C259
M4205/C259
M4205/A460