Decision No. 16-A-1989

January 13, 1989

File No. M4205-G80-3

Docket No. 88550

Gold Belt Air Transport Inc. (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 15, 1988.

Notice of the application was published on October 5, 1988 in the newspaper of the area concerned and posted at the local post offices of Pickle Lake, Summer Beaver, Round Lake (Weagamow Lake), Big Trout Lake, Kingfisher, Bearskin Lake, Wunnummin and Webequie. Copies of the notice were also sent to selected air carriers and to others believed to be interested. An intervention opposing the granting of the application was filed with the Agency by Bearskin Lake Air Service Ltd. (hereinafter Bearskin). 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 interventions referred to.

In its opposing intervention, Bearskin alleges that approval of the subject application could threaten the continued viability of its current operations through duplication of services between various communities resulting in a significant dilution of passenger traffic; however, the applicant indicates that its service is designed to provide east-west inter-community travel opportunities vis-à-vis Bearskin's essentially north-south service.

The applicant also states that the recent cessation of certain air services in northwestern Ontario by Air Ontario will result in many communities being served by a sole licensee whereas in the past two carriers provided service. In this regard, the applicant argues that the granting of its application will serve to maintain levels of air services to which the communities in question have become accustomed.

The Agency notes that Bearskin is the only licensee of the four licensees providing unit toll air services to the area in question to oppose the application and this intervener has failed to comment specifically on the overall impact, if any, that the proposed service would have on the level of air service provided to, from or 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 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.

A licence to operate a Class 3 Specific Point domestic service serving the points Pickle Lake, Wunnummin, Kingfisher Reserve, Round Lake (Weagamow Lake), Bearskin Reserve, Big Trout Lake Reserve, Summer Beaver Settlement, Webequie, Kasabonika Reserve and Sioux Lookout, Ontario, will be issued to Gold Belt Air Transport Inc. 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 Class 3 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, B and C.

Moreover, to facilitate the provision of Class 3 services to temporary resource development points, where such services do not duplicate services of another unit toll carrier, the Agency finds it in the public interest to authorize Gold Belt Air Transport Inc. 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 Groups A, B and C.