Decision No. 692-A-2002

December 27, 2002

APPLICATION by Hélicraft 2000 Inc. pursuant to subsection 73(1) of the Canada Transportation Act, S.C., 1996, c. 10, for a licence to operate a non-scheduled international service, small aircraft, to transport traffic on a charter basis between Canada and any other country.

File No. M4210/H205-2

Docket No. 021511

Hélicraft 2000 Inc. (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 received on December 18, 2002 and was complete and ready for processing on December 24, 2002.

The Agency has reviewed the application and is satisfied that the applicant meets the requirements of subsection 73(1) of the Canada Transportation Act (hereinafter the CTA).

In order for a licence to be issued, the Agency must also be satisfied, as provided for in paragraph 73(1)(b) of 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 this respect, the Agency notes that on December 17, 2002, the applicant was advised by Agency staff that it had operated a service without holding a licence issued by the Agency, thereby contravening paragraph 57(a) and section 59 of the CTA.

The applicant has advised the Agency that when it bought the company, it was unaware that a licence issued by the Agency was not transferable. The applicant maintains, therefore, that it unknowingly contravened section 59 of the CTA. The applicant also submits that upon being made aware of the requirement to hold a licence, it immediately ceased its charter operations.

The Agency finds that in operating a domestic service without holding a licence in respect of that service, the applicant contravened paragraph 57(a) of the CTA. The Agency also finds that the applicant contravened section 59.

The Agency notes that the applicant ceased to contravene paragraph 57(a) and section 59 of the CTA as soon as it was notified of the contraventions by Agency staff and that the applicant took immediate action to comply with the CTA by applying, on December 18, 2002, for the required licence.

In light of the foregoing, it appears to the Agency that the applicant's failure to obtain a licence before operating the service was not a wilful attempt to avoid compliance with legislative and regulatory requirements. Accordingly, pursuant to subsection 79(1) of the CTA, the Agency will not refuse to issue a licence to the applicant even though there has been a contravention of section 59 of the CTA.

Accordingly, a licence to operate the following service will be issued to Hélicraft 2000 Inc.

non-scheduled international service, small aircraft

Pursuant to subsection 74(1) of the CTA, the Agency deems it appropriate to include the condition 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 condition to which the licence is made subject pursuant to subsection 74(1) of the CTA:

The Licensee is authorized to transport traffic on a charter basis between Canada and any other country.

With respect to the contraventions 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.