Order No. 2004-A-36

January 16, 2004

File No. M4210/W221-1

On January 13, 2004, WestJet filed with the Canadian Transportation Agency (hereinafter the Agency) the application set out in the title.

Under Licence No. 962156, WestJet is authorized to operate a domestic service, large aircraft.

WestJet submits that the passengers will still be able to travel with WestJet from Hamilton to Ottawa via Toronto.

WestJet further submits that it intends to formally notify the Minister of Transport of Canada and the minister responsible for transportation in the Province of Ontario as well as elected officials in the municipal governments of Hamilton and Ottawa and that all such notifications and communications will be documented and forwarded to the Agency by January 31, 2004.

In addition, WestJet advises that it will advertise such notice of withdrawal in the daily newspapers in Hamilton and Ottawa in both official languages on or about January 21, 2004 and that copies of the tear sheets will be forwarded to the Agency by January 31, 2004.

In light of the foregoing, WestJet requests the Agency to grant its request for a reduction in the notice period requirement set out in subsection 64(2) of the Canada Transportation Act (hereinafter the CTA).

Subsection 64(1) of the CTA provides that where a licensee proposes to discontinue a domestic service or to reduce the frequency of such a service to a point to less than one flight per week and, as a result of the proposed discontinuance or reduction, there will be only one licensee or no licensee offering at least one flight per week to that point, the licensee shall give notice of the proposal in prescribed form and manner to such persons as are prescribed.

Pursuant to subsection 64(1.1) of the CTA, if a licensee proposes to discontinue its year-round non-stop scheduled air service between two points in Canada and that discontinuance would result in a reduction, as compared to the week before the proposal is to take effect, of at least 50 percent of the weekly passenger-carrying capacity of all licensees operating year-round non-stop scheduled air services between those two points, the licensee shall give notice of the proposal in the prescribed form and manner to the prescribed persons.

Subsections 64(1.2) and 64(2) of the CTA state, inter alia, that as soon as practicable after giving notice, an opportunity must be given to elected officials of the municipal or local government of the community of the point or points, as the case may be, to meet and discuss with the licensee the impact of the proposed discontinuance, and the proposal to discontinue the service must not be implemented until the expiry of 120 days, or 30 days if the service has been in operation for less than one year, after the notice is given or until the expiry of any shorter period that the Agency may, on application by the licensee, specify by order.

Section 14 of the Air Transportation Regulations, SOR/88-58, as amended (hereinafter the ATR) states that, for the purposes of section 64 of the CTA, a licensee shall give notice of a proposal to discontinue or reduce the frequency of a service to the Agency, to the Minister of Transport of Canada, and to the minister responsible for transportation in the province where the area to be affected is located. Additionally, the licensee is required to advise holders of domestic licences operating in the area to be affected by the proposal and to the persons resident therein by publishing a notice in local newspapers.

Pursuant to subsection 64(3) of the CTA, the Agency, in considering whether to specify a shorter notice period, shall have regard to the adequacy of alternative modes of public transportation available at or in the vicinity of the point in question or between the points concerned; other means by which air service to the point or between the points is likely to be provided; whether the licensee has complied with subsection (1.2); and the particular circumstances of the licensee.

The Agency has carefully considered this matter and notes that there are other means for passengers to travel between Hamilton and Ottawa. Also, the Agency notes that WestJet will advise the elected officials of the municipalities affected by the proposed discontinuance.

The Agency is therefore of the opinion that notice, on or about January 21, 2004, of the proposal by WestJet to discontinue its services effective April 18, 2004 is sufficient.

Accordingly, the Agency hereby orders WestJet to not implement its proposal to discontinue its year-round non-stop scheduled air services between Hamilton, Ontario and Ottawa, Ontario until April 18, 2004.

1. WestJet is required to advise the following parties of its proposed discontinuance of services:
   • the Minister of Transport Canada;
   • the minister responsible for transportation in the Province of Ontario;
   • elected officials of the municipal or local governments of Hamilton, Ontario and Ottawa, Ontario; and
   • the local communities of Hamilton and Ottawa, through the local media.
2. WestJet shall provide the Agency with copies of the notice sent to the parties as set out above and confirmation that an opportunity was provided to the elected officials to meet.
3. WestJet shall provide the Agency with copies of the tear sheets from the publications in both official languages.