EXEMPTION FROM PARAGRAPH 604.01(b) & SUBSECTION 700.02(1) OF THE CANADIAN AVIATION REGULATIONS

Background

This exemption is being issued to facilitate a lease agreement with a particular leasing circumstance.

Fast Air Ltd. has leased an aircraft from The North West Company Inc. and operates it under Subpart 703 of the Canadian Aviation Regulations (CARs) for the purpose of providing an air transport service. The air operator is the lessee and has legal custody and control of the aircraft for the term of the lease agreement.

The lessor, The North West Company Inc. is the legal title holder of the aircraft and retained, as part of the lease agreement between them, the services of the lessee, Fast Air Ltd., to provide an air transport service to the family of the lessor, and employees, or dependent and independent contractors working for the lessor. The North West Company Inc. does not have a Private Operator Certificate or Air Operator Certificate.

The CARs do not permit the lessee as an air operator operating an aircraft pursuant to Subpart 703 to operate the aircraft on behalf of the lessor under Subpart 604 of the CARs to accommodate the above noted circumstance.

Exemption

Pursuant to subsection 5.9(2) of the Aeronautics Act, and after having taken into account that the exemption is both in the public interest and is not likely to affect aviation safety, I hereby exempt Fast Air Ltd., 80 Hangar Line Road, Winnipeg, Manitoba, Canada, R3J 3Y7 from the requirements set out in paragraph 604.01(b) and subsection 700.02(1) of the Canadian Aviation Regulations (CARs), in accordance with the purpose and application and subject to the conditions set out below.

Purpose

Paragraph 604.01(b) sets out that Subpart 604 of the CARs applies only to aircraft that are not required to be operated pursuant to Part VII of the CARs. This operation of the aircraft by Fast Air Ltd. is an air transport operation to which Subpart 703 applies. Subsection 700.02(1) prohibits the operation of an air transport service unless it is operated in accordance with an air operator certificate.

The purpose of this exemption is to permit Fast Air Ltd. to operate the aircraft, identified below, pursuant to Subpart 604 rather than Subpart 703 for the purpose of providing an air transport service to the family of the lessor, and employees, or dependent and independent contractors working for the lessor.

Application

This exemption applies to the operation of the aircraft identified below for the purpose of providing an air transport service to the family of the lessor, and employees, or dependent and independent contractors working for the lessor in accordance with a lease agreement dated 19 November 2003 between The North West Company Inc., as the lessor, and Fast Air Ltd. as the lessee, for the term of 19 November 2003 to 28 February 2006.

This exemption applies to a C-441 aircraft, Registration No., C-FNWC, Serial Number 441-216, registered owner, The North West Company Inc.

Fast Air Ltd. may operate the aircraft pursuant to Subpart 604 of the CARs only for the purpose of providing an air transport service to the family of the lessor, and employees, or dependent and independent contractors working for the lessor in accordance with the lease agreement. All other air transport operations conducted by Fast Air Ltd. must be operated pursuant to Subpart 703.

Conditions

This exemption is granted subject to the following conditions:

  1. The lessee must have legal custody and control of the aircraft for the term of the lease agreement.
  2. The lessor must not dispose of any interest in the aircraft for the term of the lease agreement.
  3. The lessee must inform the Minister of Transport within 14 days when there is any change to the list of persons to be transported.
  4. Except for a change to the list of persons to be transported in accordance with condition 3, no change may be made to the lease agreement.
  5. The aircraft, when operated under this exemption, cannot be operated by a sub-lessee.
  6. The aircraft must be maintained at all times pursuant to Subpart 703 of the CARs.
  7. A copy of this exemption and an up-to-date list of persons to be transported on behalf of the lessor must be carried in the aircraft journey log-book.

Validity

This exemption is in effect until the earliest of the following:

  1. 24:00 Hours EST on December 01, 2005;
  2. The date on which the lease agreement is breached, cancelled, terminated or expires;
  3. The date on which one of the conditions set out in the exemption is breached;
  4. The date on which an amendment to the appropriate provisions of the Canadian Aviation Regulations comes into effect; or
  5. The date on which this exemption is cancelled, in writing by the Minister, where he is of the opinion that it is no longer in the public interest, or that it is likely to affect aviation safety.

Dated at Winnipeg, Manitoba, this 24th day of December 2003, on behalf of the Minister of Transport.

Original signed by

Roger Beebe
Regional Director
Civil Aviation
Prairie and Northern Region

 

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