Doug Ashbury
Northern News Services

IQALUIT (Oct 05/98) - The Iqaluit Chamber of Commerce wants another chance to air its concerns over First Air's fares in the Eastern Arctic.

The chamber is seeking leave to appeal a Canadian Transportation Agency's ruling favouring First Air.

The chamber claims First Air passenger and cargo rates have been unjustifiably high since competitor Canadian North pulled its service from north-south routes in the Eastern Arctic.

The CTA said it can deal only with complaints where there is only one service provider. Yet, they base conclusions on comparisons of First Air with other carriers.

"First Air has not imposed an unreasonable basic fare, or unreasonable increase in the basic fare since October 1995, in respect to the domestic services it operates to-from Iqaluit and for which it is the sole licensee providing such services," the CTA said in its ruling.

And that First Air fares "reveal that the levels of the basic fares and the increases to such fares applied by First Air, since October 1995 in the markets under review, do not differ markedly from basic fare levels and increases applied by other carriers in comparable markets."

To reach this conclusion, the agency compared fare levels and revenue per mile as well as increases applicable to First Air and other carriers in markets where there is competition. The CTA also used First Air financial and costing data to reach a decision.

The agency also said: "In some instances, the data indicates that, in certain markets in which First Air and other carriers compete, the increase in basic fares exceeds that applied by First Air in comparable markets to-from Iqaluit presently under review by the agency."

This means the agency concluded First Air, in some cases, has raised rates more in markets where it competes than where it doesn't. On cargo, the agency said it does not have jurisdiction over rates.

The decision to seek leave to appeal, made Sept. 22, comes after the Iqaluit Chamber of Commerce canvassed its membership of about 90 businesses for direction. It will be up to the Federal Court of Appeal to grant or deny leave.

First Air's rates have gone "beyond what we feel is justifiable" since Canadian discontinued routes in the East, chamber president Mike Hine said.

"Anything that effects air transportation (in the North) is extremely important." Because the matter is before the courts, Hine preferred not to comment directly on what an appeal, if granted, would be based.

On March 27, 1998, the Iqaluit Chamber of Commerce registered a complaint with the CTA. The chamber wanted the CTA to review air fares charged by First Air since Canadian North discontinued service between Iqaluit and Ottawa-Montreal in Oct. 1995.

The routes also include Broughton Island, Clyde River, Coral Harbour, Hall Beach, Igloolik, Lake Harbour, Kuujjuaq, Nanisivik, Pond Inlet and Resolute.

"The cost of air transportation is vital to the success of business in Nunavut," the chamber said in a release.

First Air is owned by Makivik Corp., the organization mandated to promote the interests of Nunavik. Its membership includes Inuit beneficiaries of the James Bay and Northern Quebec Agreement.

In June 1997, First Air bought NWT Air from Air Canada. NWT Air was the Northern arm of Air Canada.

A month ago, NorTerra, equally owned by the Inuvialuit and Nunasi, the Nunavut-wide Inuit development corporation, closed its deal acquiring Canadian North from Canadian Airlines.

One of the possible future moves by Air NorTerra could be expanding its Eastern Arctic services.

Despite the chamber's legal action against First Air, the chamber and the carrier are together in their condemnation of proposed new Nav Canada fees.