Decision No. 349-A-1988

September 26, 1988

File No. M4205-A292-4

Docket No. 88320

Airborne Aviation Incorporated (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 May 31, 1988.

Notice of the application was posted at the local post office at Forteau, Labrador, Newfoundland 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 Newfoundland Labrador Air Transport Ltd. (hereinafter NLAT) and Labrador Airways Ltd. (hereinafter Lab Air). 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.

Lab Air opposes only that portion of the application which proposes the operation of Group B aircraft. Although this intervener submits that the low level of demand for Group B charter services has resulted in its decision to dispose of one of its Group B Britten-Norman Islander aircraft and that there are adequate Group B charter services currently available in Forteau and the surrounding region, it does not specifically demonstrate to the Agency how the proposed service would lead to a significant decrease or instability in the level of domestic services provided in the Forteau area.

Notwithstanding NLAT's observation that the applicant has not demonstrated that there is demand from the public for the proposed service, the Agency notes that there is no provision under subsection 72(2) of the National Transportation Act, 1987, S.C. 1987, c. 34, which requires applicants to provide evidence of support for services proposed under this subsection. NLAT submits that the proposed service would compete directly with its own air services and that any reduction of NLAT's revenue would cause it to withdraw some and possibly all of its service; however, no users or community representatives have intervened to indicate that the operation of the proposed service would affect the overall provision of service to them.

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 Forteau Airfield, Forteau, Labrador, Newfoundland, will be issued to Airborne Aviation Incorporated 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.

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.