Decision No. 254-A-1993

May 12, 1993

May 12, 1993

APPLICATION by Matt's Air Service Ltd. 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 Sioux Lookout, Ontario.

File No. M4205/M175-4-1

Docket No. 920829


Matt's Air Service 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 July 20, 1992.

Notice of the application was published on August 20, 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. Interventions opposing the granting of the application were filed with the Agency by Slate Falls Airways Limited (hereinafter Slate Falls) and Tudhope Airways Ltd.(hereinafter Tudhope). The applicant replied to the interventions. Two interventions were filed in support of the application.

By letter dated November 17, 1992, the Agency advised the applicant of its determination pursuant to paragraph 72(2)(b) of the National Transportation Act, 1987 (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 interventions 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 their opposing interventions, Slate Falls and Tudhope submit that the demand for charter air service has decreased during recent years in the Sioux Lookout area and that there is over capacity in this market. They also maintain that the proposed service would divert traffic from existing carriers which could force some of them to go bankrupt thereby resulting in a decrease and instability in the level of air service. The Agency is of the view, however, that the interveners do 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 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.

The applicant was also requested by Agency letter dated November 17, 1992 to file Section II of its application within one year from the date of the letter.

The applicant met the requirements of the Agency in respect of the Group A authority; and accordingly, a licence was issued to Matt's Air Service Ltd. authorizing it to operate a Class 4 Charter domestic service using fixed wing aircraft in Group A only, from a base at Sioux Lookout, Ontario.

The applicant has now filed Section II of its application in respect of the authority to use fixed wing aircraft in Group C. 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 in respect of the authority to use fixed wing aircraft in Group C.

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 C.

Condition No. 1 of Licence No. 920435 is hereby amended to read:

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

Accordingly, a new document of licence bearing Licence No. 920435 will be issued to Matt's Air Service Ltd.

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