Decision No. 57-A-1991
February 7, 1991
APPLICATION by Alexandair Inc. 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 St-Augustin, Quebec.
File No. M4205-A271-4-8
Docket No. 90428
Alexandair 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 May 30, 1990.
Notice of the application was posted at the post office of St-Augustin 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 Trans Côte Inc. (hereinafter Trans Côte), Lower North Shore Integrated Cooperative (hereinafter LNSIC), Garage Gallant, Lessard Enterprises, St-Augustin Chamber of Commerce, St-Augustin Retail Inc., the Fishermen Committee of St-Augustin, St-Augustin Mussel Farm Inc., McKinnon Grocery, Big-R-Bar, Riverview Inn, the Local Committee of St-Augustin, Dépanneur McKinnon, Quality Fish, Consortium P.A.S. enr., Lavallee Grocery, R.S.S.D. Restaurant and E.T. Sawmill. In addition, petitions opposing the application were submitted by Glen McKinnon on behalf of 172 signatories from St-Augustin and by Trans Côte on behalf of 312 signatories from several communities in the Lower North Shore region of Quebec. The applicant replied to the submissions.
By letter dated October 24, 1990, the Agency advised the applicant of its determination pursuant to paragraph 72(2)(b) 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 submissions referred to.
The Agency's determination pursuant to paragraph 72(2)(b) of the National Transportation Act, 1987 is based on the material filed and the situation which existed on the date of issuance of the letter decision.
The interveners and petitioners submit that there is no need for an additional air carrier serving St-Augustin. They indicate that the proposed service would have a negative impact on Trans Côte, a local air carrier which contributes to the economy of the Lower North Shore region, and would thereby destabilize and reduce the level of air service provided. In addition, Trans Côte indicates in its intervention that the Class 4 Charter domestic service based at St-Augustin that it intends to operate will more than adequately satisfy the demand for air service. The Agency notes that, although the interventions and petitions indicate that numerous individuals, businesses and community representatives in the Lower North Shore region oppose the proposed service, no specific evidence is presented to substantiate that the operation of the proposed service would have a significant adverse effect on Trans Côte or on the overall level of domestic service provided to, from or within the designated area.
In its intervention, LNSIC indicates that should the applicant be authorized to operate the proposed service, the possibility of LNSIC, which is a locally controlled organization, operating a similar service in the near future would be reduced. The Agency notes that an application from LNSIC to operate a similar service would be considered 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 Agency letter dated October 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. 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.
Accordingly, a licence to operate a Class 4 Charter domestic service from a base at St-Augustin, Quebec will be issued to Alexandair Inc.
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, B and C.
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 will be subject to the terms and conditions prescribed by the Air Transportation Regulations, SOR/88-58, 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, B and C.
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