Decision No. 138-A-1989

March 17, 1989

File No. M4205-B59-4-5

Docket No. 88673

Bradley Air Services Limited (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 November 22, 1988.

Notice of the application was posted at the post office of Cambridge Bay and 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 Northwest Territorial Airways Ltd. carrying on business under the firm name and style of NWT Air (hereinafter NWT Air) and Adlair Aviation (1983) Ltd. (hereinafter Adlair). The applicant replied to the interventions.

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 interventions referred to.

In its intervention, NWT Air submits that it operates a charter service at Cambridge Bay using DC-3 aircraft in Group D and that approval of the subject application would, pursuant to the base protection provisions of the Air Transportation Regulations, SOR 88-58 (section 21), prevent it from operating its charter service and also materially affect its ability to sustain its unit toll services in the Kitikmeot Region; however, the applicant correctly notes in its reply that NWT Air could apply for a licence to operate a Cambridge Bay-based charter service or seek the applicant's concurrence to operate charters from Cambridge Bay using DC-3 aircraft. Moreover, the applicant indicates that it would not oppose such an application nor would it withhold its concurrence for NWT Air to operate charters from Cambridge Bay.

In its intervention, Adlair makes reference to the applicant's operation of contract services at Cambridge Bay and indicates that these services do not support the local economy. The Agency agrees with the applicant's response to these comments that the applicant's operation of aircraft under contract for the military DEW line and the federal government and the impact of these operations on the local economy are not relevant to the subject application.

Adlair indicates that the operation of unit toll services by the applicant and NWT Air has eroded demand for its Cambridge Bay-based charter service and that its service would be substantially affected by the proposed service. Nonetheless, Adlair does not indicate what effect, if any, the proposed service would have on the overall stability and level of domestic service provided to, from or within the designated area.

The Agency notes that there is no indication of concern from independent parties, such as members of the general public, community representatives or users of air services, that the operation of the proposed service would have a negative impact on the 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 application is hereby approved.

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.