Decision No. 41-A-1993

January 22, 1993

January 22, 1993

APPLICATION by 2753-2134 Québec Inc. carrying on business as Aéro-Littoral for a licence pursuant to subsection 72(2) of the National Transportation Act, 1987, R.S.C., 1985, c. 28 (3rd Supp.), to operate a Class 4 Charter domestic service using fixed wing aircraft in Groups A, B and C, from a base at Natashquan, Quebec.

File No. M4205/A498-4-1

Docket No. 920124


2753-2134 Québec Inc. carrying on business as Aéro-Littoral1 (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 February 6, 1992 and was complete and ready for processing on March 13, 1992.

Notice of the application was posted in the post office of Natashquan 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 Trans-Côte Inc. (hereinafter Trans-Côte). The applicant replied to the intervention.

1 By letter dated July 22, 1992, the Agency was advised that 2753-2134 Québec Inc. carrying on business as Aéro-Littoral has changed its name to Régionnair Inc.

By letter dated June 8, 1992, the Agency advised the applicant of its determination pursuant to paragraph 72(2)(b) of the National Transportation Act, 1987 (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.

Trans-Côte has requested that an environmental assessment be conducted for this proposal. Pursuant to paragraph 12(a) of the Environmental Assessment and Review Process Guidelines Order, SOR/84-467, the Agency is satisfied that the issuance of a licence for the proposed service would not produce any adverse environmental effects. Accordingly, a further review under the Environmental Assessment and Review Process is not necessary.

In its opposing intervention, Trans-Côte indicates that the supply of air services on the Lower North Shore largely exceeds the demand and that the proposed service could destabilize the precarious market equilibrium prevailing in this region. The Agency is, however, of the view 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.

Further, the Agency notes that there is no indication of concern from other 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 June 8, 1992 to file Section II of its application within one year from the date of the letter.

The applicant met the requirements of the Agency in respect of the Groups B and C authority; and accordingly, a licence was issued to Régionnair Inc. authorizing it to operate a Class 4 Charter domestic service using fixed wing aircraft in Groups B and C only, from a base at Natashquan, Quebec.

The applicant has now filed Section II of its application in respect of the authority to use fixed wing aircraft in Group A. 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 use fixed wing aircraft in Group A.

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 also use fixed wing aircraft in Group A.

Condition No. 1 of Licence No. 920351 is hereby amended to read:

The Licensee is authorized to use fixed wing aircraft in Groups A, B and C.

Accordingly, a new document of licence, bearing Licence No. 920351, authorizing Régionnair Inc. to operate a Class 4 Charter domestic service from a base at Natashquan, Quebec, will be issued.

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