Buffalo Airways (J0, Yellowknife) could be fined CAD200'000 (USD183'150) by the Canadian state after pleading guilty to charges of hauling diesel fuel in oversized tanks without proper certification and dangerous goods markings.

In its defence, the airline argued that the tanks had been in use for 30 years and that it had been granted an exemption for their use in one of its aircraft.

"Buffalo says when the tanks are connected to the fuel system of an aircraft, they no longer require the dangerous goods certification so the issue is not about safety, but more about paperwork," the Canadian Broadcasting Corporation said.

A judgement is due to be handed down on August 22.

The family-run business operates a fleet of Lockheed Electra(F)s, DC-3s, DC-4s, and C-46s among others.