Decision No. 644-A-1990

December 21, 1990

File No. M4205-R97-4

Docket No. 90716 WR

Rex Aviation 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 September 20, 1990 and was complete and ready for processing on September 21, 1990.

Notice of the application was published on October 12, 1990 in the newspapers of the area concerned 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 Air Manitoba Limited. The applicant replied to the intervention.

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.

In its opposing intervention, Air Manitoba Limited indicates that there is currently adequate Group D and E aircraft capacity to satisfy the demand for charter domestic services from Winnipeg and that this demand has been declining. The intervener also submits that it relies on the charter demand to support its unit toll services and that any diversion of traffic would jeopardize the provision of its charter and unit toll services from Winnipeg. The Agency is of the view, however, that Air Manitoba Limited does not present specific evidence to substantiate that the proposed service would lead to a significant decrease or instability in the level of domestic service provided to, from or within the designated area.

The Agency 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 applicant has also 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 Winnipeg, Manitoba will be issued to Rex Aviation 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 Group D.

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 Group D.