Decision No. 28-A-1994

January 17, 1994

File No. M4205/F19-2-1

Docket No. 910845

Bradley Air Services Limited carrying on business as First Air (hereinafter the applicant) has applied to the National Transportation Agency for authority to operate the service set out in the title. The application was received on August 19, 1991.

Under Licence No. 890008, the applicant was authorized to operate a Class 2 Regular Specific Point domestic service using fixed wing aircraft in Groups B, C, D, E, F and G, serving the points Iqaluit, Hall Beach, Cape Dorset, Coral Harbour, Clyde River, Pangnirtung, Broughton Island, Pond Inlet, Nanisivik, Igloolik, Pelly Bay, Spence Bay, Gjoa Haven, Cambridge Bay, Yellowknife, Rankin Inlet, Baker Lake, Eskimo Point, Resolute Bay, Coppermine and Holman Island, Northwest Territories; Goose Bay and Stephenville, Newfoundland; Montréal, Val d'Or, La Grande (LG-2) and Kuujjuaq, Quebec; Ottawa, Ontario; and Churchill and Winnipeg, Manitoba.

Notice of the application was published on September 9 and 10, 1991 in the newspapers of the areas concerned and posted in the post offices of La Grande (LG-2), Quebec; and Resolute Bay, Northwest Territories and copies of the notice were 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 Kenn Borek Air Ltd. The applicant replied to the intervention.

By letter dated December 16, 1991, the Agency advised the applicant of its determination pursuant to paragraph 72(2)(b) of the National Transportation Act, 1987, R.S.C., 1985, c. 28 (3rd Supp.) (hereinafter the NTA, 1987) 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 reasons for the determination of the Agency are set out below.

The pleadings form part of the public files and may be consulted in the offices of the Agency 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 intervention referred to.

The determination of the Agency pursuant to paragraph 72(2)(b) of the NTA, 1987 is based on the material filed and the situation which existed on the date of issuance of the letter which communicated the decision of the Agency.

The Agency notes that Kenn Borek Air Ltd., in its intervention, only opposes the point Grise Fiord.

L'intervenante à l'encontre de la demande fait valoir que la prestation d'un autre service aérien entre Resolute Bay et Grise Fiord n'est pas nécessaire puisque le service existant satisfait à la demande. Selon l'intervenante, il ne serait pas rentable d'effectuer plus de deux vols aller et retour par semaine. Toute concurrence entre ces points entraînerait une surcapacité considérable de services aériens et une baisse importante de recette par heure de vol. Il en résulterait inévitablement une diminution et une instabilité très importantes de la qualité du service entre Resolute Bay et Grise Fiord. Toutefois, l'Office estime que l'intervenante n'a apporté aucune preuve précise établissant que l'exploitation du service proposé aurait des répercussions néfastes considérables sur le niveau global du service intérieur offert à destination, en provenance et à l'intérieur de la zone désignée. De plus, l'Office note que First Air s'engage à remplacer les services à Grise Fiord qui seraient abandonnés par l'intervenante.The opposing intervener indicates that there is no need for an additional air service between Resolute Bay and Grise Fiord since it currently satisfies demand. According to the intervener two round-trip flights per week is all that can be sustained economically. Any competition between these points would result in substantial air service over-capacity and a dramatic decrease in revenue per flying hour which would inevitably lead to a significant decrease or instability in the level of service between Resolute Bay and Grise Fiord. The Agency is of the view, however, that the intervener does not present specific evidence to substantiate that the operation of the proposed service would have a significant adverse effect on the overall level of domestic service provided to, from or within the designated area. Moreover, the Agency notes the indication of First Air to replace any services to Grise Fiord discontinued by the intervener.

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 applicant was also requested by Agency letter dated December 16, 1991 to file Section II of its application.

La demanderesse a maintenant déposé la section II de sa demande. Après étude des documents, l'Office est convaincu que la demanderesse se conforme aux exigences énoncées à l'alinéa 72(2)a) de la LTN 1987 en ce qui a trait à l'autorisation de desservir Grise Fiord par aéronefs à voilure fixe du groupe C.The applicant has now filed Section II of its application. The Agency has reviewed the material filed and is satisfied that the applicant meets the requirements set out in paragraph 72(2)(a) of the NTA, 1987 in respect of the authority to serve Grise Fiord using fixed wing aircraft in Group C.

Licence No. 890008 is hereby amended by adding the following condition:

When serving the point Grise Fiord, the Licensee is authorized to use fixed wing aircraft in Group C.

Accordingly, a new document of licence, bearing Licence No. 890008, will be issued to Bradley Air Services Limited carrying on business as First Air.