Decision No. 548-A-1991

October 25, 1991

File No. M4205-T67-2

Docket No. 90273

Trans Côte Inc. (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 April 2, 1990 and was complete and ready for processing on April 12, 1990.

Notice of the application was published on May 1 and 3, 1990 in the newspapers of the areas concerned and posted at the post offices of Deer Lake, St-Augustin, La Tabatière, Mutton Bay, Harrington Harbour, Chevery, Kégashka, Natashquan, Lourdes-de-Blanc-Sablon, Tête-à-la-Baleine, La Romaine and Port-Menier. Copies of the notice were also sent to selected air carriers and to others believed to be interested. On June 1, 1990, the ministère des Transports of the Province of Quebec requested an extension of time to file an intervention and the Agency granted it until June 18, 1990 to do so. Interventions opposing the granting of the application were filed with the Agency by Air Nova Inc. (hereinafter Air Nova), Alexandair Inc. (hereinafter Alexandair), and Intair Inc. and Lignes aériennes Inter-Québec Inc., both carrying on business as Intair (hereinafter Intair) and the ministère des Transports of the Province of Quebec (hereinafter the ministère). By letter dated July 13, 1990, the applicant requested an extension of time to file replies to the interventions and the Agency granted it until July 16, 1990 to do so. The applicant replied to the interventions.

The Agency notes that by letter dated June 18, 1990, the applicant requested that the points Goose Bay and Deer Lake, Newfoundland be deleted from its application.

By letter dated August 24, 1990, the Agency advised the applicant of its determination pursuant to paragraph 72(2)(b) of the National Transportation Act, 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 Agency's determination are set out below.

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.

The interveners have requested that an environmental assessment be conducted for this proposal. Pursuant to subsection 10(1) of the Environmental Assessment and Review Process Guidelines Order, SOR/84-467, this proposal was subjected to an environmental screening by the Agency. 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 intervention, Air Nova specifically objects to the provision of air service between Goose Bay, Deer Lake and Blanc-Sablon. Air Nova submits that the provision of service between the three points would result in an oversupply of air service which would render the proposed service and its Class 2 Regular Specific Point domestic service unviable. The Agency notes, however, that the applicant withdrew that portion of its application proposing to serve the points Goose Bay and Deer Lake, subsequent to the submission of Air Nova's intervention. It is, therefore, unlikely that the proposed service would have an impact on the air service provided by Air Nova between Goose Bay, Deer Lake and Blanc-Sablon.

In its intervention, the ministère indicates that the Lower North Shore air market is limited and that the operation of the proposed service would divert traffic and revenues from Intair's existing air service network, which the ministère subsidizes, and therefore, disrupt existing air services provided in the Lower North Shore area. 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.

In their interventions, both Alexandair and Intair indicate that there is no need for an additional air service serving the Lower North Shore area since existing air services are adequate and the demand for these services is not substantial. The interveners maintain that the proposed service would divert air service demand and disrupt domestic services currently provided in the Lower North Shore area. The Agency is, however, of the view that neither of the interveners present specific evidence to substantiate that the operation of the proposed service would have a significant negative impact on the overall level of domestic service provided to, from or within the designated area.

Intair indicates that its opinion that the proposed service would lead to a significant decrease or instability in the level of domestic service provided in the Lower North Shore area is shared by its passengers and employees. The Agency notes, however, that there is no indication of concern from members of the general public 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.

In its intervention, Alexandair indicates that the subject application should be analyzed together with all of the other applications submitted by the applicant for authority to operate Class 4 Charter domestic services from several bases in the Lower North Shore area; however, in this regard, the Agency notes that it considers each application on its own merits.

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 the Agency's letter dated August 24, 1990 to file Section II of its application within one year from the date of the letter.

The applicant has now filed Section II of its application in respect of the authority to use fixed wing aircraft in Groups A, B and C. 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 National Transportation Act, 1987 in respect of the authority to serve the points Lourdes-de-Blanc-Sablon, St-Augustin, La Tabatière, Tête-à-la-Baleine, Chevery, La Romaine, Natashquan, Havre-St-Pierre, Sept-Îles, Port-Menier and Kégashka, Quebec using fixed wing aircraft in Groups A, B and C only.

Accordingly, a licence to operate a Class 2 Regular Specific Point domestic service serving the points Lourdes-de-Blanc-Sablon, St-Augustin, La Tabatière, Tête-à-la-Baleine, Chevery, La Romaine, Natashquan, Havre-St-Pierre, Sept-Îles, Port-Menier and Kégashka, Quebec, will be issued to Trans Côte Inc.

To make provision for the level of Class 2 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, B and C.

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

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