Decision No. 183-A-1993

April 8, 1993

April 8, 1993

APPLICATION by Aero Arctic Ltd. for authority to also use fixed wing aircraft in Groups B and C under Licence No. 890115.

File No. M4205/A23-4-1

Docket No. 911064


Aero Arctic Ltd. (hereinafter the applicant) has applied to the National Transportation Agency (hereinafter the Agency) for authority to operate the service set out in the title. The application was received on October 16, 1991 and was complete and ready for processing on November 29, 1991.

Under Licence No. 890115, the applicant is authorized to operate a Class 4 Charter domestic service using fixed wing aircraft in Group A, from a base at Yellowknife, Northwest Territories.

Notice of the application was published on January 13, 1992 in the newspaper 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 Ptarmigan Airways Ltd. The applicant replied to the intervention. In addition, three letters of support were submitted with the application.

By letter dated March 24, 1992, the Agency advised the applicant of its determination pursuant to paragraph 72(2)(b) of the National Transportation Act, 1987, R.S.C., 1985, c. 28 (3rd Supp.) (hereinafter the NTA, 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 determination of the Agency are set out below.

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 determination of the Agency pursuant to paragraph 72(2)(b) of the NTA, 1987 is based on the material filed and the situation which existed on the date of issuance of the letter which communicated the Decision of the Agency.

In its intervention, Ptarmigan Airways Ltd. submits that the market for charter services is unstable and that diluting this market would increase instability and cause economic hardship for established air carriers. The Agency, however, is 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 in 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. Moreover, the letters of support indicate that the proposed service may benefit air service users.

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 March 24, 1992 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 Group C only. 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 NTA, 1987 in respect of the authority to use fixed wing aircraft in Group C only.

Accordingly, a new document of licence, bearing Licence No. 890115 will be issued to Aero Arctic Ltd.

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 also use fixed wing aircraft in Group C.

Condition No. 1 of Licence No. 890115 is hereby amended to read:

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

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