Decision No. 127-A-1988

June 17, 1988

File No. 2-W353-3

Docket No. 10817

This application was filed with the Air Transport Committee of the Canadian Transport Commission. However, the National Transportation Agency is now responsible for the disposition of all matters filed with the Commission.

Wilderness Air (Vermilion Bay) 1982 Ltd. (hereinafter the applicant) has applied for a licence to operate the service set out in the title. The application was received on December 30, 1987 and was complete and ready for processing on January 15, 1988.

The Class 4 Charter commercial air service is now deemed to be a Class 4 Charter domestic service under the National Transportation Act, 1987, S.C. 1987, c. 34.

Notice of the application was published on February 10, 1988 in the newspaper of the area concerned and copies of the notice were sent to selected air carriers and to others believed to be interested. An intervention opposing the granting of the application was filed by Northwest Flying Inc. (hereinafter Northwest). The applicant replied to the intervention.

The pleadings form part of the public files and may be consulted in the Agency's offices 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 intervention referred to.

The Agency notes that although there is no submitted support for the proposed service, Northwest does not indicate that the operation of another service would have a negative effect on its operations to, from or within the designated area. Therefore, the Agency is of the view that the operation of the proposed service would benefit the public by increasing competition and the selection of air services available to operate charters from Nestor Falls into the designated area.

In light of the foregoing, the Agency is of the opinion that there is a requirement for the proposed service which is not being met and thus the service will have only a minor adverse effect on existing licensees, which will be outweighed by the benefits of an increase in competition at the proposed base; that the applicant has the ability and resources to institute and continue to provide the proposed service, meeting the public need therefor, and that the demand projected by the applicant supports the expectation that its service will be viable. Accordingly, the Agency is satisfied that the application to operate the proposed service should be granted. The application is hereby approved.

A licence to operate a Class 4 Charter domestic service from a base at Nestor Falls, Ontario, will be issued to Wilderness Air (Vermilion Bay) 1982 Ltd. upon the applicant establishing to the satisfaction of the Agency that it meets the requirements set out in paragraph 72(2)(a) of the National Transportation Act, 1987.

To ensure that the level of charter domestic services is consistent with demand, the Agency finds that it is in the public interest to authorize the Licensee to use aircraft in Groups A, B and C.

Moreover, to preserve the integrity of the Class 1 Scheduled domestic services and the Class 2 Regular Specific Point domestic services in the designated area, the Agency deems that it is in the public interest to make the licence subject to the terms and conditions respecting route protection as set out in the attachment.

The licence to be issued pursuant to this Decision shall, in addition to the conditions prescribed by the Air Transportation Regulations, SOR 88-58, be subject to the condition respecting route protection contained in the attachment, which is hereby made a part of this Decision, and to the following condition:

The Licensee is authorized to use fixed wing aircraft in Groups A, B and C.