### BEFOR E TH E UNITE D STATE S r • "

^ DEPARTMEN T O F TRANSPORTATIO N

WASHINGTON , D.C

.
Applicatio n of

: Docke t OS T 2003-1506 0 CANADIA N NORT H INC

. carryin g o n busines s a s CANADIA N NORT H Fo r renewa l o f

a n exemptio n Unde r 4 9 U.S.C

. sectio n 4010 9

APPLICATIO N FO RRENEWA L O F A N EXEMPTIO N

FILE D B Y CANADIA N NORT H INC

. Communication s wit h respec t t o thi s documen t

shoul db e sen t

to : Stev e Hankir k Vic e Presiden t

Operations , Airport s & Charter s Canadia n Nort h 200 , 58 0 Palme r

Roa dN E Calgary , Albert a T2 E 7R 3 Telephone : (403 ) 503-231 8 Fax : (403 ) 250-201 9



# f - ^ 10 / Dated: h -tA=

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### BEFOR E TH E UNITE D STATE S DEPARTMEN T O F TRANSPORTATIO N

WASHINGTON , D.C

. Applicatio n of

: Docke t OS T 2003-1506 0 CANADIA N NORT H INC

. Carryin g o n busines s a s CANADIA N NORT H Fo r an exemptio n unde r 4 9 U.S.C

. sectio n 4010 9

APPLICATIO N FO RA N EXEMPTIO N FILE D B Y CANADIA N NORT H INC

. 1 ) Applicant : Canadia n Nort h Suit e 300 , 5201-50^ ^ Avenu e Yellowknife , Northwes t

Territorie s Canad a X1A3S 9 Pursuan t t o 4 9 US C Sectio n 4010 9 an dth e Department' s Procedura l Regulations , Canadia n Nort h Inc

. c/o/b Canadia n Nort h hereb y request s renewa l o f th e exemptio n fro m4 9 US C 4130 1 grante di n thi s documen t o n Ma y 28 , 200 8 authorizin g th e carrie r t o conduc t

passenge r

an dcarg o charte r

operation s betwee n an y point s i n Canad aan d an y point s i n th e Unite dStates , an dothe r charter s i n accordanc e wit h 1 4 CF RPart 212

. Thi s authorit y wa s grante dfor aperio do f

tw o year s an di s du e t o expir e o n May 28,2010

. 2 ) Operations : Canadia n Nort h conduct s acharte r passenge r

an dcarg o servic e t o point s i n th e Unite d State s utilizin g nin e Boein g 737-20 0 aircraft

.

### Canadia n Nort h ha s curren t Par t 12 9 Foreig n Ai r

Carrie r Operation s Specificatio n No

. N0OF050F

. Th e FA A distric t offic e maintainin g thes e record s is : Northwes t

Mountai n Regio n Fligh t Standard s Distric t

Offic e Seattl e Internationa l Fiel dUni t 160 1 Lin dAvenue , SW , Suit e 26 0 Renton , Washingto n 98055-405 6 3 ) Bilatera l Ai r

Transpor t

Agreement : Th e Unite dStates-Canad aAi r Transpor t

Service s Agreemen t

encompasse s thi s operation

. 4 ) Compan y Senio r

Management : Ther e hav e bee n n o change s i n th e citizenshi p o f Canadia n North' s senio r executives , director s an dmanagemen t personne l sinc e ou r

las t filin g wit h th e department

. Al l senio r compan y personne l ar e Canadia n citizen s an dresident s o f Canada

. Sinc e ou r las t filin g ther e hav e bee n tw o change s t o th e compan y senio r managemen t structure
. A Director , Commercia l Fligh t Operation s an dCharter s ha s bee n appointe d an dth e positio n o f

Directo r In-Fligh t ha s bee n replace db y th e Senio r Manager , Cabi n Safet y & Onboar dProduct

. Both o f thes e position s repor t

directl y t o th e Vic e President , Operations , Airport s an dCharters

. Both o f th e appointee s ar e residen t Canadia n citizen s wit h n o othe r busines s interests , Canadia n o r Foreig n 5 ) Stockholders : Canadia n Nort h i s 10 0 percen t owne db y NorTerr aInc

. an ddoe s no t hav e an y stockholders

. NorTerr aInc

. doe s not hav e an y interest s i n othe r aeronautic s companies

. Th e ownershi p o f Canadia n Nort h remain s 10 0 percen t Canadia n aborigina l owne dan doperated

.

### 6 ) Acciden t Liabilit y Insuranc e Coverage : Canadia n Nort h utilize s th e insuranc e brokerag e service s o f Mars h Canad aLimite d (an MM C Company ) an di s insure dwit h Lloyd s an dcertai n insuranc e companies

. Th e coverag e meet s al l requirement s o f Titl e 1 4 CFR, Chapte r

II , subchapte r

A , par t 205

. A certificat e o f

insuranc e ha s bee n filedwit h th e Federa l Aviatio n Administratio n Headquarters , Progra mManagemen t Branc h (FAA/AFS-260)

. 7 ) Operatin g Authority : Canadia n Nort h Inc

. carryin g o n busines s a s Canadia n Nort h operate s unde r th e authorit y o f

Departmen t

o f Transpor t

Ai r Operator Certificat e (AOC ) 10008

. Thi s AO C authorize s Canadia n Nort h Inc

. t o operat e adomesti c an dnon-schedule d internationa l servic e utilizin g Bombardie r DH 8 an dBoein g 73 7 typ e aircraft

. Th e AO C i s curren t

an ddoe s not

hav e an expiratio n dat e an dremain s i n effec t unti l suspende do r

cancelled

. Canadia n Nort h i s currentl y authorize dadomesti c servic e utilizin g medium , larg e an d all-carg o aircraf

t unde r Canadia n Transportatio n Agenc y (CTA ) Licenc e No

. 98014 2 an danon-schedule dinternationa l servic e utilizin g larg e aircraf t unde r CT A Licenc e No

. 030036

. 8 ) Operatin g History : Canadia n Nort h ha s no t

ha dan y safety violations , defaulte do n an y transportatio n commitment s o r

bee n th e subjec t

o f an y bankruptc y proceeding s i n th e pas t five years . 9 ) Automati c Extensio n Provision : Canadia n Nort h hereb y invoke s th e automati c extensio n provision s o f th e Administrativ e Procedur e Act , 5 US C 55 8 su b c , a s implemente db y 1 4 CF RPart 377 , t o kee p ou r

exemptio n authorit y i n effec t pendin g final actio n b y th e Departmen t o n th e renewa l request
. Submitte dby :

Stev e Hankirk Vic e Presiden t

Operations , Airport s an dCharter s Attachment : Notic e o f Actio n Take n - Docke t OS T 2003-1506 0

# m UNITE D STATE S O F AMERIC A

4jfn ^ DEPARTMEN T O F TRANSPORTATIO N W^Sl } OFFIC E O F TH E SECRETAR Y ysSSi ^ WASHINGTON , D.C

. Issue db y th e Department

o f Transportatio n o n Ma y 28,200 8 NOTIC E O F ACTIO N TAKE N ~ DOCKE T OST-2003-1506 0 Thi s serve s a s notic e t o th e publi c o f th e actio n describe dbelow , take n b y th e Departmen t

officia l indicate d(n o additiona l confirmin g orde r

wil l b e issue di

n thi s matter)

. Applicant : Canadia n Nort h Inc

. c/o/ b Canadia n Nort h Date Filed : Ma y 9,200 8 Relie f requested : Exemptio n fro m4 9 U.S.C

. § 4130 1 t o permi t th e applican t

t o conduc t

passenge r

an dcarg o charter operation s betwee n any poin t o r point s in Canad aan dan

y poin t or point s i n th e Unite dStates , an dother charter s i n accordanc e wit

h 1 4 CF RPart

212

. I f renewal , date an dcitatio n o f las t action : Februar

y 12,2007 , in thi s Docke t Applicant representatives : Stev e Hankirk , 403-503-231 1 DO T Analyst : Georg e Wellingto n (202 ) 366-239 1 Responsiv e pleadings : Non e file d DISPOSITIO N Action : Approve dActio n date : Ma y 28 , 200 8 Effectiv e date s o f

authority granted : Ma

y 28,200 8 - Ma

y 28,201 0 Basi s fo r approva l (bilateral agreement/reciprocity) : Unite dStates-Canad aAir Transpor t Agreemen t Excep t to th e exten t

exempted/waived , thi s authorit y i s subjec t

t o th e terms , conditions , an dlimitation s o f ou r standar d exemptio n condition s (attached)

. Actio n take n by : Pau l L

. Gretch , Directo r

Offic e o f Internationa l Aviatio n Unde r authorit y assigne db y th e Departmen t i n it s regulations , 1 4 CF

RPar t 385 , w e foundthat

(1 ) th e applicant

i s qualifie dt o perfor

mth e propose doperations ; (2 ) our actio n wa s consisten t

wit h Departmen t

policy ; (3 ) gran t

o f th e authorit y wa s consisten t

witi i th e publi c interest ; and(4 ) gran t o f th e authorit

y woul dno t

constitut e amajo

r regulator y actio n unde

r th e Energ y Polic y an dConservatio n Ac t o f 1975

. T o th e exten t

no t granted/deferred/dismissed , we denie dall request s i n th e reference dDocke t We ma y amend , modify , or

revok e th e authority grante din thi s Notic e at an y time withou t

hearin g at

our discretion

. Person s entitle dt o petitio n th e Departmen t fo r revie w o f th e actio n se t

fort h i n thi s Notic e unde r

th e Department' s regulations , 1 4 CF

R§ 385.30 , ma

y file thei r

petition s withi n seve n (7 ) day s afte r th e dat e o f

issuanc e o f

thi s Notice

. Thi s actio n wa s effectiv e whe n taken , an dth e filin g o f apetitio n fo

r revie w wil l no t

alte r suc h effectiveness

.
A n electroni c versio n o f

thi s document

i s availabl e o n th e Worl dWid e We b at : http://www

. regtilationst

. go vForeig n Carrie r Exemptio n Condition s In the conduc t

o f th e operation s authorized , th e foreig n carrier applicant(s ) shall : (1 ) Not conduc t an y operation s unles s i t

hold s acurrentl y effectiv e authorizatio n fromit s homelan dfo r suc h operations , an

di t ha s filed acop y o f

suc h authorizatio n wit

h th e Department ; (2 ) Compl

y wit h al l applicabl e requirement s o f th e Federal Aviatio n Administration , th e Transportatio n Securit y Administration , andwith al l applicabl e U.S

. Government requirement s concernin g security , including , but no t limite dto , 1 4 CF

RPart s 129 , 91 , an d3 6 and4 9 CF RPar t 154 6 or 1550 , a s applicable

. T o assure complianc e wit h all applicabl e U.S

. Governmen t requirement s concernin g security , th e holde r shall , befor

e commencin g an

y new servic e (includin g charter

flights ) fro

maforeig n airpor

t tha t woul db e th e holder' s las t poin t o f departure fo

r th e Unite dStates , contac t

it s International Industr

y Representativ e (IIR ) (formerly referre dt o a s Internationa l Principa l Securit y Inspector) t o advis e th e II Ro f it s plan s an dt o fin

dout whether th e Transportatio n Securit y Administratio n ha s determine dthat

securit y i s adequat e t o allo w suc h airport(s ) t o b e served ; (3 ) Compl

y wit h th e requirement s fo

r minimu minsuranc e coverag e containe di n 1 4 CF RPar t 205 , and , prio r

to th e commencemen

t o f any operation s unde r

thi s authority , file evidenc e o f suc h coverage , in th e for

mo f acomplete d OS T For m6411 , wit

h th e Federal Aviatio n Administration' s Progra mManagemen t

Branc h (AFS-260) , Flight Standard s Servic e (any change s to , or terminatio n of

, insuranc e als o shal l b e filedwit h that office) ; (4 ) Not operat e aircraf t under thi s authorit

y unles s i t complie s wit

h operational safet

y requirement s a

t leas t equivalent t o Anne x 6 o f

th e Chicag o Convention ; (5 ) Confor

mt o th e airworthines s an dairma n competenc y requirement s o f it s Government

for internationa

l ai r services ; (6 ) Excep t

a s specificall y exempte do r otherwis e provide dfo

r in aDepartmen t

Order , compl y wit

h th e requirement s o f

1 4 CF RPar t 203 , concernin g waiver

of Warsa w Conventio n liabilit

y limit s an ddefenses ; (7 ) Agre e tha

t operation s under

thi s authorit

y constitute awaive

r o f sovereig n immunity , fo

r th e purpose s o f

2 8 U.S.C

. 1605(a) , but

onl y wit h respec t t o thos e action s o

r proceeding s institute dagains t i t in an y cour t o r othe r tribuna l i n th e Unite dState s that

are : (a ) base do

n it s operation s in international ai r transportatio n that , accordin g t o th e contrac t

o f cartiage , includ e apoin t

i n th e Unite dState s a s apoin t o f origin , poin t

o f destination , or

agree d stoppin g place , o

r for whic h th e contrac t

o f carriag e wa s purchase din th e Unite dStates ; or (b ) base do

n aclaim unde r any international agreemen t o r treat y cognizabl e i n any cour

t or other tribuna l o f

th e Unite dStates

. In thi s condition , th e ter

m"international ai r

transportation " mean s "international transportation " a s define db y th e Warsa

w Convention , excep t

tha t al l State s shal l b e considere dto b e Hig h Contractin g Partie s fo r th e purpos e o f

thi s definition ; (8 ) Excep t

a s specificall y authorize dby th e Department , originate or terminat e all flight s to/firo mth e UnitedState s in its homeland ; (9 ) Compl

y wit h th e requirement s o f

1 4 CF RPar t 217 , concernin g th e reportin g o f scheduled , nonscheduled , an d charte r data ; (10 ) I f charte r operation s ar e authorized , excep t a s otherwis e provide di

n th e applicabl e aviatio n agreement , comply wit h th e Department' s rule s governin g charter s (includin g 1 4 CF RPart s 21 2 and380) ; an d (11 ) Comply wit

h suc h othe r

reasonabl e terms , conditions , an dlimitation s require dby th e publi c interes t a s ma y b e prescribe db

y th e Department , wit

h al l applicabl e order s or

regulation s o f

other U.S

. agencie s andcourts , an dwit h all applicabl e law s o f

th e Unite dStates

. Thi s authorit

y shal l no t

b e effectiv e durin g an

y perio dwhen th e holde

r i s no t in complianc e wit

h th e condition s impose dabove , Moreover , thi s authorit y canno t b e sol dor

otherwis e transferre dwithou t explici t Departmen

t approva l under Titl e 4 9 o f

th e U.S

. Code

. 12/2007