Agency Rulings

Decision No. 492-A-1993

July 26, 1993

APPLICATION by Aklak Air Ltd. for authority to also serve the points Norman Wells and Fort Good Hope, Northwest Territories under Licence No. 880429.

File No. M4205/A158-3-2

Docket No. 920933

Aklak Air Ltd. (hereinafter the applicant) has applied to the National Transportation Agency for authority to operate the service set out in the title. The application was received on August 6, 1992 and was complete and ready for processing on November 30, 1992.

Under Licence No. 880429, the applicant is authorized to operate a Class 3 Specific Point domestic service using fixed wing aircraft in Groups B, C and D, serving the points Inuvik, Aklavik, Fort McPherson, Tuktoyaktuk, Sachs Harbour, Paulatuk, Holman, Coppermine and Cambridge Bay, Northwest Territories.

Notice of the application was published on December 18 and 21, 1992 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 North-Wright Air Ltd. The applicant did not reply 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.

The opposing intervener submits that there is no need for an additional air service and that the proposed service would further dilute an already saturated market. It also maintains that the approval of the proposed service would negatively affect its revenues and would result in a significant decrease in the level of air services provided in the MacKenzie Valley. The Agency is of the view, however, 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 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.

By Decision No. 128-A-1993 dated March 5, 1993, the applicant met the requirements of the Agency in respect of the authority to use fixed wing aircraft in Groups B and C; and accordingly, a new document of licence, bearing Licence No. 880429, reflecting that authority was issued to Aklak Air Ltd.

The applicant has now filed Section II of its application in respect of the authority to use fixed wing aircraft in Group D. 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, R.S.C., 1985, c. 28 (3rd Supp.) in respect of the authority to also use fixed wing aircraft in Group D.

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 D.

Licence No. 880429 is hereby amended by deleting Condition No. 2.

Accordingly, a new document of licence bearing Licence No. 880429, authorizing Aklak Air Ltd. to operate a Class 3 Specific Point domestic service serving the points Inuvik, Aklavik, Fort McPherson, Tuktoyaktuk, Sachs Harbour, Paulatuk, Holman, Coppermine, Cambridge Bay, Norman Wells and Fort Good Hope, Northwest Territories, will be issued.