Determination No. A-2019-8

The applicant has applied to the Canadian Transportation Agency (Agency) for a licence to operate domestic services, large and all-cargo aircraft.

The applicant is currently licensed to operate a domestic service, medium aircraft.

The Agency is satisfied that the applicant meets all the applicable requirements of section 61 of the CTA as it relates to all-cargo aircraft.

In order for a licence to be issued, the Agency must also be satisfied, as provided for in paragraph 61(b) of the CTA, that the applicant has not contravened section 59 of the CTA within the preceding twelve months.

Section 59 of the CTA states that no person shall sell, cause to be sold or publicly offer for sale in Canada an air service unless, if required under Part II of the CTA, a person holds a licence under that Part in respect of that service and that licence is not suspended.

On December 19, 2017, the Agency issued Order No. 2017 A-220 where it exempted the applicant from the application of section 59 of the CTA.

The applicant admitted that it contravened condition 1 of the exemption which requires that all advertising in any media, whether written, electronic or telecommunications, shall include a statement that the air services are subject to government approval, unless and until the section 59 exemption expires following the issuance of a licence. All prospective clients must be made aware, before the signature of any charter contract, that the air services are subject to government approval.

The applicant stated that it has taken the necessary steps to correct this contravention and maintains that the public would not have been adversely affected.

The Agency, pursuant to subsection 79(2) of the CTA, has discretion to issue a licence notwithstanding a contravention.

The Agency has considered this matter and, in light of the substantive negative consequences that such a refusal would have on the applicant, will not refuse to issue a licence to the applicant even though it admitted having contravened section 59 of the CTA.

The Agency notes that the aircraft proposed by the applicant is not equipped for the carriage of goods only as defined in section 2 of the Air Transportation Regulations, SOR/88-58, as amended. Although the aircraft is equipped for the carriage of passengers and goods, the Canadian Aviation Document issued by Transport Canada only allows the applicant to operate its aircraft for the carriage of goods. For the purpose of issuing the requested license, the Agency considers the aircraft in question is an all cargo aircraft.

Accordingly, the Agency approves the application for a licence to operate a domestic service, all-cargo aircraft.

For greater certainty, Order No. 2017-A-220 will remain valid until all requirements are met for the issuance of the licence to operate a domestic service, large aircraft.