Decision No. 106-A-1991

March 7, 1991

File No. M4205-B19-3

Docket No. 90629

Bearskin Lake Air Service Ltd. (hereinafter the applicant) has applied to the National Transportation Agency to operate the service set out in the title. The application was received on August 10, 1990 and was complete and ready for processing on August 24, 1990.

Under Licence No. 882475, the applicant is authorized to operate a Class 3 Specific Point domestic service using fixed wing aircraft in Groups A, B and C, serving the points Sioux Lookout, Thunder Bay, Marathon, Manitouwadge, Big Trout Lake, Kasabonika, Webequie, Fort Severn, Dryden, Minaki, Kenora, Fort Frances, Sandy Lake, Pikangikum, Round Lake, Red Lake, Bearskin Lake, Sachigo Lake, Cat Lake, Muskrat Dam, Wunnummin Lake, Kingfisher Lake, Pickle Lake, Fort Hope, Lansdowne House, Deer Lake and Peawanuck, Ontario; and Winnipeg, Manitoba.

Notice of the application was published on September 12, 13 and 14, 1990 in the newspapers of the areas concerned and posted at the post office of Island Lake. Copies of the notice were sent to selected air carriers and to others believed to be interested. Interventions opposing the granting of the application were filed with the Agency by Frontier Air Ltd. carrying on business as Canadian Frontier (hereinafter Canadian Frontier) and the Mushkegowuk Council (hereinafter the Council). The applicant replied to the interventions.

By letter dated December 17, 1990, the Agency advised the applicant of its determination pursuant to paragraph 72(2)(b) of the National Transportation Act, 1987 that the issuance of a licence for the proposed service would not lead to a significant decrease or instability in the level of domestic service provided between points or to or from any point in the designated area. The reasons for the determination of the Agency are set out below.

The pleadings form part of the public files and may be consulted in the offices of the Agency by anyone who so desires. In addition, copies will be provided by the Secretary of the Agency on request.

The Agency has considered the application, the material in support thereof and the interventions referred to.

The determination of the Agency pursuant to paragraph 72(2)(b) of the National Transportation Act, 1987 is based on the material filed and the situation which existed on the date of issuance of the letter decision.

In its intervention, the Council submits that the proposed service would lead to the continued fluctuation and eventual decline in air services in the area. The Council is opposed to the application as proposed; however, it would be willing to enter a joint venture with the applicant to provide air service in the Mushkegowuk region. According to the intervener, airline problems in the region have arisen as a result of the lack of control by local communities over "outside" airlines. Canadian Frontier submits that the two existing air carriers provide frequent service between Timmins and Moosonee/Moose Factory and to points beyond and that the introduction of a third air carrier would destabilize the current equilibrium in these markets and result in a decline in the level of service provided. According to the intervener, the level of competition is already at the saturation point, and traffic levels are insufficient to support a third carrier providing service in the region. The Agency notes, however, that the interveners do not present specific evidence to substantiate that the operation of the proposed service would have a negative impact on the overall level of domestic service provided to, from or within the designated area.

Accordingly, the Agency is satisfied that the issuance of a licence for the proposed service would not lead to a significant decrease or instability in the level of domestic service provided between points or to or from any point in the designated area.

The applicant was also requested by Agency letter dated December 17, 1990 to file Section II of its application within one year from the date of the letter.

The applicant has now filed Section II of its application. The Agency has reviewed the material filed and is satisfied that the applicant meets the requirements set out in paragraph 72(2)(a) of the National Transportation Act, 1987.

A new document of licence, bearing Licence No. 882475 authorizing the Licensee to serve the points Sioux Lookout, Thunder Bay, Marathon, Manitouwadge, Big Trout Lake, Kasabonika, Webequie, Fort Severn, Dryden, Minaki, Kenora, Fort Frances, Sandy Lake, Pikangikum, Round Lake, Red Lake, Bearskin Lake, Sachigo Lake, Cat Lake, Muskrat Dam, Wunnummin Lake, Kingfisher Lake, Pickle Lake, Fort Hope, Lansdowne House, Deer Lake, Peawanuck, Angling Lake, Moosonee, Fort Albany, Kashechewan, Attawapiskat and Timmins, Ontario and Winnipeg and Island Lake, Manitoba will be issued to Bearskin Lake Air Service Ltd.