Decision No. 145-A-1988

June 30, 1988

File No. 2-F222-5A

Docket No. 88112

Bradley Air Services Limited carrying on business under the firm name and style of First Air (hereinafter the applicant) has applied to the National Transportation Agency for the amendment set out in the title. The application was received on March 3, 1988.

Under Licence No. 2500/75(NS), the applicant is authorized to operate a Class 2 Regular Specific Point domestic service using fixed wing aircraft in Groups B, C, D, E and G, serving the points Iqaluit (Frobisher Bay), Hall Beach, Cape Dorset, Coral Harbour, Clyde River, Pangnirtung, Broughton Island, Pond Inlet, Nanisivik, Igloolik, Pelly Bay, Spence Bay, Gjoa Haven, Cambridge Bay and Yellowknife, Northwest Territories; Montreal, P.Q.; and Ottawa, Ontario.

Notice of the application was published on March 22 and 23, 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. Interventions opposing the granting of the application were filed by Labrador Airways Limited and Air Nova Inc. The applicant replied to the interventions. Four interventions were filed in support of the application.

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 reviewed the application, the material in support thereof and the interventions referred to.

The Agency notes that the applicant proposes to provide twice weekly non-stop unit toll services in both directions between Ottawa and Goose Bay on a year round basis. Although both opposing interveners argue that the Goose Bay market is limited and that the addition of the proposed service will cause instability and affect the orderly growth of air services, neither one of these interveners has provided any evidence to substantiate their claims. Moreover, neither one of the opposing interveners has provided any evidence to support their request that the applicant be restricted to non-stop services between Ottawa and Goose Bay.

Furthermore, the Agency notes that the proposed service would reduce the travel time to two hours or approximately one-third of the travel time associated with connecting flights offered by Air Canada/Air Nova and Canadian between Ottawa and Goose Bay. This time saving represents a significant improvement in the level of service between these two points. The proposed service also offers non-stop flights versus the multi-stop flights offered by the existing licensees. Moreover, there is a requirement for the proposed service as evidenced by the interventions in support of the application.

Accordingly, the Agency is satisfied that 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 for the proposed licence amendment is hereby approved.

A licence to operate a Class 2 Regular Specific Point domestic service, serving the points Iqaluit (Frobisher Bay), Hall Beach, Cape Dorset, Coral Harbour, Clyde River, Pangnirtung, Broughton Island, Pond Inlet, Nanisivik, Igloolik, Pelly Bay, Spence Bay, Gjoa Haven, Cambridge Bay and Yellowknife, Northwest Territories; Goose Bay, Newfoundland; Montreal, P.Q.; and Ottawa, Ontario, will be issued to Bradley Air Services Limited carrying on business under the firm name and style of First 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 ensure that the level of service provided on a Class 2 basis is consistent with demand, the Agency finds it in the public interest to authorize the Licensee to use fixed wing aircraft in Groups B, C, D, E and G.

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 following condition:

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