Decision No. 137-A-1988

August 2, 1988

File Nos. 2-E229-1A
-2A
-3A
-4A

Docket No. 10822

Under Licence No. A.T.C. 3254/81(NS), Ear Falls Airways Limited is authorized to operate a Class 3 Specific Point commercial air service using fixed wing aircraft in Group B, serving the points Ear Falls, Dryden and Red Lake, Ontario and Winnipeg, Manitoba.

Under Licence No. A.T.C. 1513/63(C), Ear Falls Airways Limited is authorized to operate a Class 4 Charter commercial air service using fixed wing aircraft in Groups A, B and C, from a base at Ear Falls, Ontario; and under Licence No. A.T.C. 677/80(CF), a Class 9-4 International Charter commercial air service using the same aircraft, from the same base.

Pursuant to section 22 of the Air Carrier Regulations, C.R.C. 1978, c. 3, and section 27 of the National Transportation Act, R.S.C. 1970, c. N-17, notice has been given that Ear Falls Airways Limited proposes to transfer to Gawley's Northern Waters Air Service Ltd. the commercial air services set out in the title. The notice was received on December 29, 1987 and was complete and ready for processing on March 21, 1988.

This notice 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.

Notice of the proposed transfer was published on April 13, 1988 in the newspapers of the areas concerned and copies of the notice were sent to selected air carriers and to others believed to be interested. No objections to the proposed transfer were filed.

The Agency has reviewed the notice, the material in support thereof and notes that there were no objections to the proposed transfer.

After consideration of the evidence before it, the Agency has determined that the proposed transfer will not unduly restrict competition or otherwise be prejudicial to the public interest. Accordingly, the transfer of the commercial air services authorized under Licence Nos. A.T.C. 1513/63(C), A.T.C. 3254/81(NS) and A.T.C. 677/80(CF), from Ear Falls Airways Limited to Gawley's Northern Waters Air Service Ltd., is not disallowed subject to the condition that Gawley's Northern Waters Air Service Ltd. commences operating the services within a period of 180 days from the date of this Decision and to the further condition that the services authorized under Licence Nos. A.T.C. 1513/63(C), A.T.C. 3254/81(NS) and A.T.C. 677/80(CF), remain in the name of and continue to be operated by Ear Falls Airways Limited until licences have been issued to Gawley's Northern Waters Air Service Ltd.

A licence to operate a Class 3 Specific Point domestic service serving the points Ear Falls, Dryden and Red Lake, Ontario and Winnipeg, Manitoba, will be issued to Gawley's Northern Waters Air Service Ltd. upon its 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 ensure that the level of service on a Class 3 basis is consistent with demand, the Agency finds it in the public interest to authorize the Licensee to use fixed wing aircraft in Group B.

Moreover, to facilitate the provision of Class 3 services to temporary resources development points, where such services do not duplicate services of another unit toll carrier, the Agency finds it in the public interest to authorize Gawley's Northern Waters Air Service Ltd. to commence service to such points provided that the addition and operation of such services are in accordance with the conditions 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 conditions respecting Appendix "A" points contained in the attachment, which are hereby made a part of this Decision, and to the following condition:

The Licensee is authorized to use fixed wing aircraft in Group B.

Licences to operate a Class 4 Charter domestic service and a Class 9-4 Charter non-scheduled international service, both from a base at Ear Falls, Ontario, will be issued to Gawley's Northern Waters Air Service Ltd. upon its establishing to the satisfaction of the Agency that it meets the requirements set out in paragraph 72(2)(a) and subsection 94(1), respectively, of the National Transportation Act, 1987.

To ensure that the level of charter domestic services is consistent with demand, the Agency finds it in the public interest to authorize the Licensee to use fixed wing 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 it in the public interest to make the Class 4 licence subject to the terms and conditions respecting route protection as set out in the attachment.

The Class 4 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 conditions:

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

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

Moreover, the Agency deems it in the public interest to make the Class 9-4 licence to be issued subject to the conditions set out below.

The Class 9-4 licence to be issued pursuant to this Decision shall, in addition to the conditions prescribed by the Air Transportation Regulations, be subject to the following conditions:

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

Prior to conducting an international flight under this licence, the Licensee must obtain the required authorization from the appropriate authorities of the foreign government concerned.

Failure by either the transferor or the transferee to comply with the aforementioned conditions will result in the commencement of proceedings by the Agency with a view to disallowing the transfer.