Wabusk Air (Moosonee) had its Air Operator Certificate (AOC) cancelled by Transport Canada on June 8, prohibiting it from providing any commercial air services. In a statement, the regulator said it had taken "this serious safety action" because of "Wabusk Air’s demonstrated inability to safely operate in accordance with the Canadian Aviation Regulations".

Before the move, the department said it had used various measures such as "certificate action and enhanced monitoring" to ensure the carrier operated its commercial air service safely, but, it added, the Ontario-based carrier had failed to do this.

"Air passengers in the communities of northeastern Ontario previously serviced by Wabusk Air can continue to use the other available air operators in this area which provide commercial air services," Transport Canada said.

Founded in the mid 1990s, Wabusk Air operates one Beech (twin turboprop) King Air 100, one Beech (twin turboprop) King Air 90, and two Piper (twin piston) Chieftan/Navajos on scheduled passenger flights connecting Moosonee with other communities around James Bay as well as with Timmins, the fourth-largest city in the northeastern Ontario region. It also offers personal and commercial charters and cargo delivery.

The Transportation Safety Board of Canada website shows multiple investigations into the airline. In June 2018, for example, it fined it CAD1,688 (USD1,260) for failing to comply with policies and procedures contained in its Maintenance Control Manual in an incident dated November 17, 2016.

In April 2018, it was fined CAD3,750 (USD2,805) for allowing maintenance on an aircraft on August 8, 2016, by mechanics lacking an Approved Maintenance Organisation (AMO) certificate issued in the relevant category.

On September 15, 2017, the Canadian Transportation Agency, an administrative tribunal, suspended Wabusk Air's license to operate a domestic service and small aircraft, for "ceasing to meet the requirement to hold a valid Canadian aviation document". However, the licence was reinstated three days later.