Decision No. 32-A-1993

January 20, 1993

File No. M4895/B105-4-1

Docket No. 921014

Balkan Bulgarian Airlines (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 2, 1992 and was complete and ready for processing on September 29, 1992.

Notice of the application was published on October 13, 1992 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. An intervention opposing the granting of the application was filed with the Agency by Mr. Thomas Rebelo. The applicant replied to the intervention.

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 intervener, who experienced a flight delay and baggage difficulties during a recent trip with the applicant, expresses concern regarding the capability of the applicant to offer a quality service. The Agency notes, however, that the comments of Mr. Rebelo do not reflect upon public interest, per se, but rather relate to a particular experience when travelling with the applicant. The Agency is of the view that the introduction of the proposed service would benefit the public by increasing the choice of Class 9-4 Charter non-scheduled international services and the level of competition in the provision of international charter services.

In light of the foregoing, the Agency finds it in the public interest to issue a licence to operate a Class 9-4 Charter non-scheduled international service to Balkan Bulgarian Airlines.

The applicant has also filed Section II of its application in respect of the authority to use fixed wing aircraft in Group H. The Agency has reviewed the material filed and is satisfied that the applicant meets the requirements set out in subsection 94(1) of the National Transportation Act, 1987 in respect of the authority to use fixed wing aircraft in Group H.

Accordingly, a licence to operate a Class 9-4 Charter non-scheduled international service between points in Bulgaria and points in Canada will be issued to Balkan Bulgarian Airlines.

In accordance with the applicant's indicated intentions and as the applicant has demonstrated that it holds a Canadian Operating Certificate from Transport Canada valid for the operation of aircraft in Group H only, the Agency deems it in the public interest to authorize the Licensee to use aircraft in Group H. Moreover, as the applicant has established that it has satisfied the insurance requirements pursuant to paragraph 94(1)(c) of the National Transportation Act, 1987 for the carriage of passengers and goods, the Agency deems it in the public interest to authorize the Licensee to carry this type of traffic.

Moreover, in accordance with current policy and to minimize any potential significant imbalance between Canadian carriers providing capacity for Canadian originating charter traffic and foreign carriers providing capacity for Canadian originating charter traffic while simultaneously encouraging and promoting tourism to Canada, the Agency finds it in the public interest to condition the licence as set out below.

The licence will be subject to the terms and conditions prescribed by the Air Transportation Regulations, SOR/88-58, and to the following conditions:

1. Licensee is authorized to transport traffic between points in Bulgaria and points in Canada.
2. The Licensee is authorized to use fixed wing aircraft in Group H.
3. During any operating year (the period from April 1st in any year to March 31st of the year immediately following), the Licensee may operate out of Canada six (6) charter flights carrying fourth freedom Canadian-originating charter passengers without bringing any third freedom charter passengers from its own country to Canada, but thereafter shall not transport out of Canada to its home country more than three (3) fourth freedom Canadian-originating charter flight passengers for every two (2) third freedom charter flight passengers originated in its home country which it transported to Canada. For the purpose of this condition such charter passengers must travel on a round-trip basis and the outward and return flights shall be considered as one passenger trip with the originating outbound flight of the passenger determining the status of fourth or third freedom.
4. During any operating year (the period from April 1st in any year to March 31st of the year immediately following) the Licensee shall not transport out of Canada to its home country more than three (3) fourth freedom Canadian originating entity cargo charter flights for every two (2) third freedom entity cargo charter flights originated in its home country. Charters applied for in excess of the Licensee's earned entitlement will be subject to Canadian carriers' rights of first refusal.