Amendment to Part 294
Canadian Air Taxi Operators (CATO)
Part 294 of the Department's aviation economic regulations (14 CFR part 294) exempts foreign air carriers that have registered with the Department as "Canadian charter air taxis'' from various provisions in Title 49 of the United States Code, including the requirement in sections 41301 and 41302 to obtain a foreign air carrier permit before engaging in foreign air transportation. In 1981, when the Civil Aeronautics Board \1\ (CAB) promulgated part 294, it intended to provide Canadian charter air taxis with a simplified and expedited economic licensing process. Central to the CAB's reasoning in establishing this special licensing status for Canadian charter air taxis was its opinion that ``we [the United States] have good aviation relations with our Canadian neighbors''--a description that is even more apt today.