Decision No. 639-A-1989

December 19, 1989

File No. M4205-N121-3

Docket No. 89540

Northern Lights Air Services Ltd. (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 14, 1989.

Notice of the application was published on October 3 and 4, 1989 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. The public notice was also posted at the local post offices of Black Tickle, Cartwright, Davis Inlet, Hopedale, Makkovik, Port Hope Simpson, Postville, Rigolet, Fox Harbour, Williams Harbour, Charlottetown, Nain and Blanc-Sablon. An intervention opposing the granting of the application was filed with the Agency by Labrador Airways Limited. The applicant replied to the intervention.

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 intervention referred to.

Although the opposing intervener claims that the proposed service will divert traffic, result in an increase of the government subsidy and ultimately lead to a decrease in the level of air service, it does not submit specific evidence to substantiate these claims. Moreover, the Agency notes that the Government of Newfoundland and Labrador did not intervene to oppose the application.

The Agency also notes that there is no indication of concern from independent 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 application is hereby approved.

A licence to operate a Class 3 Specific Point domestic service serving the points Goose Bay, Black Tickle, Cartwright, Davis Inlet, Hopedale, Makkovik, Port Hope Simpson, Postville, Rigolet, St. Anthony, Fox Harbour, Williams Harbour, Charlottetown and Nain, Newfoundland, and Blanc-Sablon, Quebec, will be issued to Northern Lights Air Services Ltd. 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, R.S.C., 1985, c. 28 (3rd Supp.).

To make provision for the level of Class 3 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 Group A.

Moreover, to facilitate the provision of Class 3 services to temporary resource development points, where such services do not duplicate services of another unit toll carrier, the Agency finds it in the public interest to authorize Northern Lights Air Services Ltd. to commence service to such points provided that the addition and operation of such services are in accordance with the conditions 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 conditions respecting Appendix "A" points contained in the attachment, which are hereby made a part of this Decision, and to the following condition:

The Licensee is authorized to use fixed wing aircraft in Group A.