Decision No. 853-A-1993

December 10, 1993

December 10, 1993

APPLICATION by Voyageur Airways Limited for authority to also use fixed wing aircraft in Group C under Licence No. 882544 and to delete Condition No. 2 of the said licence.

File No. M4205/V36-4-2

Docket Nos. 931127
931152


Voyageur Airways Limited (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 11, 1993 and was amended on August 20, 1993.

Under Licence No. 882544, the applicant is authorized to operate a Class 4 Charter domestic service to transport persons and goods using fixed wing aircraft in Groups A and B, from a base at North Bay (Jack Garland Airport), Ontario.

The Agency, by Order No. 1993-A-292 dated September 20, 1993, suspended, inter alia, Licence No. 882544 pursuant to subsection 75(2) of the National Transportation Act, 1987, R.S.C., 1985, c. 28 (3rd Supp.) (hereinafter the NTA, 1987).

Condition No. 2 of Licence No. 882544 reads as follows:

The Licensee is restricted to the use of wheel and/or ski equipped aircraft only.

Notice of the application was published on September 3, 1993 in the newspaper of the area concerned. In addition, selected air carriers and others who may have an interest in the proceedings were notified of the application. An intervention opposing the granting of the application was filed with the Agency by Air North Bay Inc. The applicant replied to the intervention.

The Agency has considered the application, the material in support thereof and the intervention referred to.

In its opposing intervention, Air North Bay Inc. submits that the proposed service would negatively affect its existing service and endanger its prospects of staying in business. The intervener also indicates that it sees no reason to delete Condition No. 2 from the applicant's licence. The Agency notes, 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 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.

With respect to the deletion of Condition No. 2 from Licence No. 882544, the intervener does not present convincing evidence against deletion of the Condition. Deletion of Condition No. 2 is consistent with the National Transportation Policy which includes that competition and market forces are, wherever possible, the prime agents in providing viable and effective transportation services.

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 NTA, 1987.

The Agency has determined that a new licence to operate a Class 4 Charter domestic service using fixed wing aircraft in Group C, from a base at North Bay (Jack Garland Airport), Ontario, will be issued to Voyageur Airways Limited in light of the suspension of Licence No. 882544.

Accordingly, a licence to operate a Class 4 Charter domestic service using fixed wing aircraft in Group C, from a base at North Bay (Jack Garland Airport), Ontario will be issued to Voyageur Airways Limited.

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.

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, 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 C.

With respect to the application for deletion of Condition No. 2 of Licence No. 882544, the Agency deems it appropriate in the public interest to amend Licence No. 882544 by deleting Condition No. 2.

Pursuant to subsection 72(4) of the NTA, 1987, Licence No. 882544 is hereby amended by deleting Condition No. 2.

Accordingly, a new document of licence, bearing Licence No. 882544, will be issued to Voyageur Airways Limited; however, Licence No. 882544 will remain suspended in its entirety in accordance with the terms of Order No. 1993-A-292 dated September 20, 1993.

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