Decision No. 257-A-1993

May 12, 1993

May 12, 1993

APPLICATION by Gary Shelton carrying on business as Northwoods Flying Service 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 Group A, from a base at Hudson's Hope, British Columbia, between May 1 and September 30 of each year.

File No. M4205-N133-4

Docket No. 90410 WR


Gary Shelton carrying on business as Northwoods Flying Service (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 May 23, 1990.

Notice of the application, which did not reflect the seasonal nature of the proposed service, was posted at the post office of Hudson's Hope 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 Canstar Aviation Ltd. (hereinafter Canstar). The applicant replied to the intervention. By letter dated August 24, 1990, the applicant requested that its application be amended by deleting the reference to the seasonal restriction of its proposed service. By registered letter dated October 16, 1990, the applicant was advised that the Agency had accepted the amendment to the application and Canstar was granted ten (10) days from receipt of the letter to file any comments to the amendment. Further comments were submitted to the Agency by Canstar. The applicant replied to the comments of Canstar.

By letter dated December 27, 1990, the Agency advised the applicant of its determination pursuant to paragraph 72(2)(b) of the National Transportation Act, 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 National Transportation Act, 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, Canstar indicates that the operation of the proposed service may diminish its revenues and affect the financial viability of the Class 4 Charter domestic service it intends to operate at Hudson's Hope. In this respect, the Agency notes that, by Decision No. 372-A-1990 dated July 11, 1990, Canstar was issued a favourable determination regarding an application to operate a Class 4 Charter domestic service using fixed wing aircraft in Groups A and B, from a base at Hudson's Hope, British Columbia; however, Canstar has not yet satisfied the licence issuance requirements of the Agency and, therefore, a licence authorizing the operation of the service has not been issued. As a consequence, Canstar submits that it cannot state, at this time, that the proposed service would lead to a decrease or instability in the level of domestic service provided in the Hudson's Hope area. In its reply, the applicant indicates that, based on its market analysis, the Hudson's Hope area can support more than one Class 4 Charter domestic service since the demand for air service from tourists and game and fish outfitters is not being satisfied. The Agency is of the opinion that Canstar does not indicate or 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.

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 applicant was also requested by Agency letter dated December 27, 1990 to file Section II of its application.

The applicant has now 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 Hudson's Hope, British Columbia will be issued to Gary Shelton carrying on business as Northwoods Flying Service.

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 A.

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 A.

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