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### BEFOR E TH E UNITED STATE S : : • ;d5cQKpp! L DEPARTMEN T O F TRANSPORTATIO N ^ ' ^^^ ^ ' ' ^

WASHINGTON , D.C
. ,.,,„.. . ...... . Application of

: Docke t OS T 2003-1506 0 CANADIA

N NORT H INC
. carrying o n busines s a s CANADIA

N NORT H Fo r renewa l of a n exemptio n Unde r 4 9 U.S.C
. Sectio n 4010 9
APPLICATIO N FO RRENEWAL OF 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 d b e sen

t to : Steve Hankir

k Vic e President , Operations , Airport s & Charter s Canadia n Nort h Inc
. 200 , 58 0 Palme

r Roa d N E Calgary , Alberta T2 E 7R3 Telephone : (403 ) 503-231 1 Fax:(403)250-201 9

Dated : Januar

y 25
. 201 2

### 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 a n exemptio n for

on e year 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 Inc
. 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 d th 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 from4 9 US C 4130 1 grante d i n thi s documen t o n Marc h 12 , 201 0 authorizin g th e carrie r t o conduc t

passenge r

an d carg 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 d States , an d othe r charter s i n accordanc e with 1 4 CF RPart 212
. Thi s authorit y wa s grante d fo r aperio d o f

tw o year s an d i s du e t o expir e o n Marc h 12,2012
. 2 ) Operations : Canadia n North conduct s acharte r passenge r

an d carg o servic e t o point s i n th e Unite d State s utilizin g eigh t

Boein g 737-20 0 aircraf

t an d thre e Boein g 737-30 0 aircraft

.

### Canadia n Nort h ha s curren

t Par t 12 9 Foreig n Ai

r Carrie r Operation s Specification No
. N0OF050F
. Th

e FA A distric t office maintaining thes e record s is : Northwes t Mountain Regio n Fligh t Standard s Distric t

Offic e Seattle Internationa

l Fiel d Uni

t 160 1 Lin d Avenue , SW , Suit

e 26 0 Renton , Washingto n 98055-405 6 3 ) Bilatera l Ai r

Transpor t

Agreement : Th e United States-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 no change s i

n th e citizenship o

f Canadia n North' s senio

r executives , director s an

d managemen

t personnel sinc e ou

r las t filin g wit h th e department

. All Senio r Compan y personne l ar

e Canadia n Citizen s o

r Permanen t Canadia n Residents , wit h no othe r busines s interests , Canadia n o r Foreign

. Sinc e ou r las t filin g ther e hav e bee n tw o change s within the Compan y senio r managemen

t structure
. Steve Hankirk , Vic e President , Operations , Airport s & Charter s ha s assumed responsibilit y fo r the Carg o department

. Hi s titl e ha s changed t o Vic e President , Operations , Charter s & Cargo
. Joh n Green , Director , Commercia l Fligh t Operation s an

d Charter s ha s bee

n promoted t

o Senio r Director , Operations , responsibl e fo

r th e Fligh t Operations , Maintenanc e an d Infligh t departments

. Thi s positio n report s directly to th e Vic e President , Operations , Charter s & Cargo
. 5 ) Stockholders : Canadia n Nort h i s 10 0 percen t owne d b y NorTerr aInc
. an d doe s not hav e an y stockholders

. NorTerraInc
. doe s not have an y interest s in 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 owned an

d operated

. 6 ) Accident

Liability Insuranc e Coverage : Canadia n Nort h utilize s th e insuranc e brokerag e service s o f Willi s Corroon Aerospac e o f CanadaLtd

. an

d i s insure d wit

h Lloyd s an

d certai 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 of insuranc e ha s bee

n filed wit h the 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 North operate s vmde r th e authority o f

Departmen t

o f Transport

Ai r Operato r Certificat e (AOC ) 10008
. Thi s AO C authorize s Canadia n North t o operat e adomesti c an d non-schedule d internationa l servic e utilizin g Boein g 73 7 an d Das h 8 typ e aircraft

. Thi s AO C i s curren t an d doe s no t

hav e a n expiratio n dat e an d remain s i n effec t unti l suspende d o r cancelled

. Canadia n North i s currentl y authorize d adomesti c servic e utilizin g mediu man d larg e aircraf t unde r Canadia n Transportatio n Agenc y (CTA ) Licenc e No
. 98014 2 an d anon schedule d internationa 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 not

ha d an y safet

y violations , defaulte d o 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 d b 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 d b y

Stev e Hankirk Vic e President , Operations , Charter s & Carg o
Attachment : Notic e o f

Actio n Take n - Docke t

OS T 2003-1506 0UNITED STATE S O F AMERIC A DEPARTMEN

T O F TRANSPORTATIO N OFFIC E O P TH E SECRETAR Y n^f i I V '^ n WASHINGTON , D.C
. - C.U % Issue d b y th e Departmen

t o f Transportation o

n Marc h 12,201 0 

### NOTIC E O F ACTIO N TAKE N - DOCKE T OST-2003-1506 0 Thi s serve s as notic e t

o th e publi c of

th e action describe

d below , take

n b y the Departmen

t officia l indicate d (n o additiona l confirmin g orde r wil l b e issue d i n thi s matter)
. Applicant : Canadia n Nort h Inc
. c/o/ b Canadia n Nort h Dat e Filed ; Februar

y 19,201 0 Relie f requested : Exemptio

n fro m49 U.S.C
. § 4130 1 t

o permi t the applican

t to conduct

passenge r an d carg o charte

r operation s betwee

n an y poin t o r point s i n Canadaan

d an y poin t o r points i n th e United States , an

d othe r charters in accordanc e wit

h 1 4 CF RPar t 212
. If renewal , dat

e an d citation of

las t action : Ma

y 28,2008 , mthi s Docke

t Applican t representatives : Stev e Hankirk , 403-503-231 8 DO T Analyst : Georg e Wellington (202 ) 366-239 1 Responsive pleadings : Non e filed DISPOSITIO N Action : Approve

d Action date : Marc h 12,201 0 Effectiv e date s o f authorit y granted : Marc

h 12,201 0 -Marc h 12,201 2 Basi s fo r approva l (bilatera l agreement/reciprocity) : Unite d States-Canad

aAi r Transpor t Agreemen t Excep t t o th e exten

t exempted/waived , thi s authorit y i s subjec t to the terms , conditions , an d limitation s o

f ou r standar d exemptio n condition s (attached)

. Action take

n by : Pau l L
. Gretch , Directo

r Offic e o f Internationa

l Aviation Unde r authorit y assigne d b y th e Departmen

t i n it s regulations , 1 4 CF

RPar t 385 , we foun

d tha t (1 ) the applican

t i s qualifie d t o perfor mthe propose

d operations ; (2 ) ou

r actio n wa s consisten t wit h Departmen

t policy ; (3 ) gran

t o f th e authorit y wa s consisten t wit h th e publi c interest ; an

d (4 ) gran t of the authorit

y would no t

constitut e amajo r regulator y action unde

r the Energ y Policy an

d Conservatio

n Ac t of 1975
. T o the exten t no t granted/deferred/dismissed , w e denied al l requests in th e referenced Docket

. W e ma y amend , modify , o

r revok e th e authorit

y granted mthi s Notic e a

t an y tim e withou t hearing a t ou r discretion

. Person s entitled t

o petition th e Departmen

t fo r revie w o f the action se

t fort h i n thi s Notic e unde

r the Department' s regulations , 14 CF

R§ 385.30 , ma

y file then

- petition s withi

n seve n (7 ) day s afte

r th e dat e of issuanc e o f thi s Notice

. Thi s action wa s effectiv

e whe n taken , an d th e filing of

apetition fo

r review wii

l not alte r suc h effectiveness

. A n electroni c version o f

thi s docianen

t i s availabl e o

n th e Worl d Wid e We b at : h tip.-//www, regulationst

. go

vForeig n Carrie r Exemptio n Condition s In th e conduc t

o f th e operation s authorized , th e foreign carrier applicant(s ) shall : (1 ) No t conduc t any operation s unles s i t

hold s acurrentl y effectiv e authorizatio n fro mit s homelan d fo

r suc h operations , and i t

ha s filed acopy o f

such authorizatio n wit

h th e Department ; (2 ) Comply wit

h all applicabl e requirement s o f th e Federa

l Aviatio n Administration , th e Transportatio n Securit y Administration , and wit

h al l applicabl e U.S
. Governmen t requirement s concernin g security , including , bu t no t limite d to , 1 4 CF

RPart s 129 , 91 , an d 3 6 and 4 9 CF RPar t 154 6 or 1550 , a s applicable

. T o assure complianc e wit h al l applicabl e U.S
. Government requirement s concernin g security , th e holder shall , befor

e commencin g any new servic e (includin g charter

flights) fro

maforeign airpor

t tha t woul d b e th e holder' s las t point o f departur e fo r th e Unite d States , contac t

it s Internationa

l Industr y Representativ e (IIR ) (formerly referre d t o a s Internationa l Principa l Securit y Inspector) t o advis e th e IIRo f it s plan s an

d t o find out

whethe r th e Transportatio n Securit y Administratio n ha s determine d tha

t securit y i s adequat

e to allo w suc h airport(s ) to b e served ; (3 ) Comply wit

h th e requirement s fo

r minimu minsuranc e coverag e containe d in 1 4 CF RPar t 205 , and , prio r

t o th e commencemen

t o f an y operation s unde

r thi s authority , file evidenc e o f such coverage , in th e for

mof acomplete d OS T For m6411 , wit

h th e Federa

l Aviatio n Administration' s Progra mManagemen

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

, insuranc e als o shal l b e filed wit h tha t office) ; (4 ) No t operate aircraf

t under thi s authorit

y unles s i t complie s wit

h operationa

l safet y requirement s at

leas t equivalent to Annex 6 o f

th e Chicag o Convention ; (5 ) Confor

mt o th e airworthines s an d airma n competenc y requirement s o f it s Governmen

t fo r internationa

l air services ; (6 ) Excep t

a s specifically exempte d or otherwis e provide d fo

r in aDepartmen

t Order , comply wit

h th e requirement s o f

1 4 CF RPar t 203 , concernin g waive

r of Warsa w Conventio n liabilit

y limit s and defenses ; (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

only wit h respec t t o thos e action s o

r proceeding s institute d agains t i t i n an y cour t o r othe r tribunal i n th e Unite d State s tha

t are : (a ) base d o

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

o f carriage , include apoint

i n th e Unite d State s a s apoint o f origin , point

o f destination , or

agree d stoppin g place , o

r fo r whic h th e contrac t

o f carriag e wa s purchase d i

n th e Unite d States ; or

(b ) base d on aclai m unde r an y internationa

l agreemen

t or treat y cognizabl e i

n an y cour t or othe r tribunal o f

th e Unite d States
. I

n thi s condition , th e ter

m"internationa

l air transportation " mean s "internationa l transportation " a s define d by th e Warsa w Convention , excep t

tha t al l State s shal l b e considere d to b e High Contractin g Partie s fo r th e purpos e o f

thi s definition ; (8 ) Excep t

a s specifically authorize d by th e Department , originat e or terminate al l flights to/fromth e Unite d State s i n it s 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 , and charter data ; (10 ) If charter operation s are authorized , excep t a s otherwis e provide d i

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 and 380) ; and (11 ) Comply wit

h suc h other

reasonabl e terms , conditions , and limitation s require d b y th e publi c interes t

a s ma y b e prescribe d b

y th e Department , wit

h all applicabl e order s o

r regulation s o f

other U.S
. agencie s an

d courts , and wit

h all applicabl e law s o f

th e Unite d States
. Thi s authorit

y shal l no t

b e effectiv e durin g an

y perio d whe

n th e holde

r i s no t i n complianc e wit

h th e condition s impose d above

. Moreover , thi s authorit y canno t b e sol d o r otherwis e transferre d without explici t Departmen

t approva l under Titl e 4 9 o f

th e U.S
. Code

. 12/2007