Decision No. 129-A-1988

June 22, 1988

File No. 2-C318-20

Docket No. 88095

Calm Air International Ltd. carrying on business under the firm name and style of Calm Air (hereinafter the applicant) has applied to the National Transportation Agency for a licence to operate the service set out in the title. The application was received on February 23, 1988.

Notice of the application was published on March 4, 1988 in the newspapers 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 Northland Air Manitoba Limited (hereinafter NAML). 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.

NAML does not object to the proposed Group C charter service, and no other air carrier authorized to provide a Class 4 Charter domestic service using Group C aircraft at Winnipeg has intervened to oppose the application. Accordingly, this portion of the application is unopposed.

A review of the charter revenue hours performed at Winnipeg with Groups D and E aircraft between 1985 and 1987 shows that the markets for those aircraft groupings are not sizeable and that there is no overall trend of market growth. However, the Agency is of the view that approval of the application would restore competition in the Groups D and E markets at Winnipeg to which the public had become accustomed when there was active competition between NAML and Nunasi-Central Airlines Limited. This former competitive situation was altered by virtue of the formation of Nunasi-Northland Airlines Limited which took over the services formerly provided by Nunasi-Central Airlines Limited and which is under the direct management of NAML. Since NAML and Nunasi-Central Airlines Limited have extensive operations unrelated to their Groups D and E operations at Winnipeg, the Agency is of the view that their continued viability would not be jeopardized by the proposed service.

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 application is hereby approved.

A licence to operate a Class 4 Charter domestic service from a base at Winnipeg, Manitoba, will be issued to Calm Air International Ltd. carrying on business under the firm name and style of Calm Air 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, S.C. 1987, c. 34.

To make provision for the level of charter domestic service to be consistent with demand anticipated by the applicant and in accordance with the applicant's indicated intentions, the Agency finds it in the public interest to authorize the Licensee to use fixed wing aircraft in Groups C, D and E.

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 it 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 C, D and E.