Decision No. 15-A-1989

January 12, 1989

File No. M4205-C205-4

Docket No. 88552 WR

Cook Air Ltd. (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 September 14, 1988.

Notice of the application was published on September 28, 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. Interventions opposing the granting of the application were filed with the Agency by Athabaska Airways Ltd. (hereinafter Athabaska) and P.A. Aviation Services Ltd. (hereinafter P.A. Aviation). 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 their opposing interventions, both Athabaska and P.A. Aviation submit that their Prince Albert-based charter aircraft are underutilized and that demand for these aircraft would decrease further as a result of the proposed service. In addition, Athabaska alleges that the applicant has failed to identify any new or potential market that is not already being served and, as a consequence, any new service will dilute an already inadequate demand. Notwithstanding the interveners' submissions, the Agency notes that Prince Albert is located south of the line separating the designated area from the non-designated area and that the interveners do not specifically comment on the impact, if any, that the proposed service would have on the level of air service provided to, from and within the designated area.

The Agency also notes that there is no indication of concern from independent parties, such as members of the general public, community representatives and 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.

A licence to operate a Class 4 Charter domestic service from a base at Prince Albert, Saskatchewan, will be issued to Cook Air 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, 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 A and B.

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 A and B.