Judgments

Decision Information

Decision Content

In re North Coast Air Services Limited
Court of Appeal, Jackett C.J., Walsh J. and Sheppard D.J.—Prince Rupert, B.C., February 28, 29 and March 1; Ottawa, March 13, 1972.
Judicial review—Air Transport Committee of Canadian Transport Commission—Air carrier's licence—Amendment of, by attaching condition prohibiting carriage between cer tain points in the routes of scheduled carrier—Representa- tions invited before amendment made—Whether rules of natural justice govern—No hearing provided for—Aeronau- tics Act, R.S.C. 1970, c. A-3, s. 16(6) and (8).
Carriage by Air—Air Transport Committee—Air Carri- ers—Amendment of licences after issue—Restrictions placed on routes—Right to restrict routes by amendment of licence—Aeronautics Act, R.S.C. 1970, c. A-3, s. 16(6) and (8).
In 1968 the Supreme Court of Canada held invalid a general order made in 1951 by the Air Transport Board providing that no commercial air carrier might carry traffic between points named in a licence of a Class 1 or Class 2 carrier. In 1970 the Air Transport Committee of the Canadi- an Transport Commission wrote each of some 450 commer cial air carriers that public convenience and necessity required the protection of routes served by Class 1 and Class 2 carriers against the operations of Class 4 carriers, and that it proposed to amend each of their licences by attaching thereto the condition formerly contained in the general order. Each of the 450 licensees was however invited to make representations as to why such condition should not be attached to its licence. Only 58 licensees made representations, but the Committee attached the con dition to all Class 4 licences. Appellant, a Class 4 carrier since 1959, applied under section 28 of the Federal Court Act to set aside the Committee's decision and simultaneous ly appealed therefrom under section 64(2) of the National Transportation Act, R.S.C. 1970, c. N-17.
Held, the appeal and application must be dismissed.
Per Jackett C.J. and Walsh J.: The rules of natural justice applied and the Commission could only amend an air carri er's licence under section 16(8) of the Aeronautics Act after affording the licensee a fair opportunity for correcting or contradicting any relevant statement prejudicial to the licen see's view. The Commission had done so because (1) appel lant had been invited to make representations against the policy announced by the Commission before it finally decid ed to attach the condition to appellant's licence, and (2) although the Commission in its letter did not set out the factual situation upon which its policy decision was based, appellant as an experienced air carrier knew what it was, viz the obligation of scheduled air carriers to maintain regu ar service on routes without regard to traffic volume. The Kin v. Port of London Authority [1919] 1 K.B. 176, per-Bit-ties
L. J. at p. 184, applied; Board of Education v. Rice [1911] A.C. 179, referred to.
Per Sheppard D.J.: The only condition attached by Parlia ment to the exercise of the Commission's power to amend a licence under section 16(8) of the Aeronautics Act is that public çonvenience and necessity so require; and that power has been expressly made a matter for the Commission's opinion, which the Commission may form without a hearing and without observing the. principles of natural justice. Liversidge v. Anderson [1942] A.C. 206, applied.
Held also (per Jackett C.J. and Walsh J.), under section 16(8) of the Aeronautics Act the Commission can attach a condition to a licence by amendment as freely as under section 16(6) when issuing the licence.
APPEAL from decision of Air Transport Committee of Canadian Transport Commission and application to set the decision aside.
A. A. W. MacDonnell, Q.C. for North Coast Air Services Limited.
J. M. Fortier, Q.C. and N. Norton for Air Transport Committee.
John B. Hamilton, Q.C. for Canadian Pacific Airlines.
F. Lemieux for Pacific Western Airlines.
A. Garneau for Attorney General of Canada.
M. R. Robertson for Trans-Provincial Airlines.
JACKETT C.J. (orally)—This is an application under section 28 of the Federal Court Act to review and set aside a decision of the Air Transport Committee of the Canadian Trans port Commission dated October 20, 1971, adding conditions to the appellant's Commercial Air Services Licence No. A.T.C. 1016/59(C) and an appeal from the same decision under section 64(2) of the National Transportation Act, R.S.C. 1970, c. N-17, as amended by the Federal Court Act read with section 10 of the Revised Statutes Act, c. 48 of the Statutes of 1964-65. The application and the appeal were joined, by order of the Court, into one proceeding.
It is not without interest to review chronolog ically a series of events leading up to this proceeding.
In 1959 a licence was granted to the appellant under Part II of the Aeronautics Act to operate, inter alia, a charter commercial air service from a base at Prince Rupert, British Columbia. This licence was expressed to remain in effect until suspended or cancelled. It was replaced by the then new Canadian Transport Commission on August 6, 1968 by Licence No. A.T.C. 1016/59(C). When the original licence was issued in 1959, there was in existence an order known as General Order 5/51, made by the Air Transport Board on October 23, 1951, whereby it was ordered that no commercial air carrier should carry traffic between points named on the same licence of inter alia any Class 1 sched uled commercial air carrier or between points named on the same licence of any Class 2 non-scheduled commercial air carrier except in certain defined circumstances.
In 1967, the appellant having been convicted of breaches of General Order 5/51, the British Columbia Court of Appeal, on appeal from such convictions, held that Order No. 5/51 was ultra vires (Regina v. North Coast Air Services Ltd. 65 D.L.R. (2d) 334).
The next step was that, the National Trans portation Act, c. 69 of 1966-67, having come into force, the Air Transport Committee of the Canadian Transport Commission, on January 17, 1968, enacted an order No. 1968-A-5 pur porting to make General Order No. 5/51, and others, orders of the Air Transport Committee. In North Air Services Ltd. v. Canadian Trans port Commission [1968] S.C.R. 940, General Order No. 5/51 and the other orders referred to in No. 1968-A-5 were declared invalid by the Supreme Court of Canada.
By an order of the Air Transport Committee dated October 20, 1971, Order No. 1971-A 331, a condition was added to the appellant's licence No. A.T.C. 1016/59(C) prohibiting the appellant, as licensee, from carrying traffic between points on a route served by a Class 1 or Class 2 carrier except in certain defined circumstances.
This proceeding is an attack on the validity of the aforesaid Order No. 1971-A-331 of October 20, 1971.
The atta - A on the validity of the order in question falls into two parts, viz:
(a) the first position taken by the appellant is that the Canadian Transport Commission has no authority to impose any limitation on the sphere of operations of one carrier designed to give protection to another carrier, or to create monopolies, and, in any event, cannot do so by way of an amendment to a licence, and
(b) in the alternative, the appellant takes the position that, even if the Commission had power to attach the conditions on its licence in question here, it did not validly do so.
The provisions of the Aeronautics Act, R.S.C. 1970, c. A-3, that bear directly on the Commission's powers to make the order here in question are:
9. (1) In this Part
"commercial air service" means any use of aircraft in or over Canada for hire or reward;
16. (1) The Commission may issue to any person apply ing therefor a licence to operate a commercial air service in the form of licence applied for or in any other form.
(3) The Commission shall not issue any such licence unless it is satisfied that the proposed commercial air serv ice is and will be required by the present and future public convenience and necessity.
(6) In issuing any licence, the Commission may prescribe the routes that may be followed or the areas to be served and may attach to the licence such conditions as the Com mission may consider necessary or desirable in the public interest, and, without limiting the generality of the forego ing, the Commission may impose conditions respecting schedules, places of call, carriage of passengers and freight, insurance, and, subject to the Post Office Act, the carriage of mail.
(8) The Commission may suspend, cancel or amend any licence or any part thereof where, in the opinion of the Commission, the public convenience and necessity so requires.
17. (1) No person shall operate a commercial air service unless he holds a valid and subsisting licence issued under section 16.
These provisions follow the traditional formula for creating monopolies and quasi-monopolies in the transportation field for the purpose of ensuring that, to the extent possible, the service required by the public is supplied by persons operating in the private sphere. Certainly, when subsection (1) of section 16 is read with section 17, it would seem that, if a licence is issued to one person to operate on a particular route, and there are no other licensees, that person will have a monopoly in respect of that route. Fur thermore, it is obviously a possibility that the Commission will have satisfied itself that the only basis on which it can ensure a scheduled service over a particular route is by granting a licence for that route to a person on terms that he service the route—it being understood that he can only be expected to service it if he is protected from all competition. In such a case, it is apparent that the Commission might con clude that public convenience and necessity requires that charter licences granted to third persons be so framed as to protect the operator of such a scheduled route from competition. In my view, therefore, the condition that is the subject of the order under attack is one that the Commission may attach to a licence as neces sary or desirable in the public interest and I find nothing in Part I of the Aeronautics Act incon sistent with that conclusion. Nor do I find any thing inconsistent with that conclusion in the decisions of the British Columbia Court of Appeal and the Supreme Court of Canada to
which I have referred. Tysoe J.A. expressly said that "It may be that the Board had the power to attach to the appellant's licence a condition prohibiting it from carrying traffic between two or more of the points named in the licence of B.C. Airlines Limited" and he referred in that connection to the then section 15(1) and (6) of the Aeronautics Act (now sec tion 16(1) and (6)). He said that that, however, was not the question before the Court at that time because General Order 5/51 was "a blan ket order of general application to the entire body of air carriers in Canada who are within the class of commercial carriers". In the Supreme Court of Canada, Martland J., deliver ing the judgment of the Court, agreed with the reasoning of Tysoe J.A. for holding that section 15, as it then was, could not be used to support General Order 5/51.
In my view, therefore, the condition under attack is one that can be attached to a charter licence, under section 16(6), when it is being issued, if the Commission considers it neces sary or desirable in the public interest to do so.
Furthermore, in my opinion, if the condition is one that can be attached to a licence when it is being issued, it may be attached to the licence by amendment, in the exercise of the Commis sion's powers under section 16(8), "where, in the opinion of the Commission, the public con venience and necessity so requires". I can find nothing in the words used in the statute, or in the scheme of the statute, that makes the result that can be achieved by amendment under sec tion 16(8) something less than what could have been done when the licence was being issued, assuming the opinion of the Commission that it is required by the public convenience and necessity.
The appellant contends, however, that this is not a simple case of amending the appellant's licence because the Commission at the same time took steps to attach the same condition to the appellant's licence and to every other exist ing charter licence and that this was, therefore,
an attempt to do indirectly what the Supreme Court of Canada held that the Commission could not do directly, namely, to make a general order prohibiting all charter licensees from operating between points on a Class 1 or Class 2 route with specified exceptions. I cannot agree that it follows from the lack of authority to enact a prohibition by way of general order that there is no authority to attach a condition to every licence having the same prohibitory effect. If the Commission had authority to enact a general prohibitory order, it would have creat ed a legal prohibition regardless of the circum stances existing in any particular case. It had no authority to enact any such regulation.' On the other hand, the Commission has express authority to attach to an individual licence a condition that would impose such a prohibition on the particular licensee, if the Commission considers it "necessary or desirable in the public interest" (s. 16(6)) or "where, in the opinion of the Commission, the public conveni ence and necessity se requires" (s. 16(8)). This involves the Commission addressing itself to the requirements of thé particular situation in respect of each licence in the light of such general policy principles as it may have adopt ed. If, having done so, the Commission reaches, by a proper process of reasoning, the same result in every case, the final result is a valid exercise of its powers even though, in effect, it is the same as the result it tried, at an earlier stage, to achieve by an exercise of a regulation making power that it did not have. In the one case it will have done what Parliament author ized it do so. In the other case it tried to do what it was not authorized to do.
That brings me to the second branch of the case which is the appellant's contention that, in its case, there has been a failure by the Com mission to comply with the requirements of natural justice before making the order under attack so that the order was not a valid exercise of the power conferred on the Commission by section 16(8).
The attack from this point of view is summa rized by the appellant's memorandum as follows:
If the Court should consider that the Commission had the lawful authority under the "Aeronautics Act" to pass the Order that it did, which it is submitted cannot be found, then the manner in which the licence was amended amount ed to a decision founded on an erroneous finding made without regard to the material before the Commission.
It is submitted that the file the Commission produced, which is the material in the possession of the Commission, that it considered before it issued the Order in question, does not disclose any material that could remotely allow the Commission to properly conclude there were any merits in amending the applicant's licence. There were no studies of any matters economic or otherwise before it nor any other material that would justify any carrier being restricted in its routes and in particular none to justify restricting North Coast Air Services Ltd. in its routes either in its immediate area or elsewhere. In addition there were cogent reasons put forward by North Coast Air Services Ltd. for not amending its licence.
It is submitted that to conclude that route protection should be imposed upon licensees the Commission must have considered extraneous matters beyond the material filed and if so in not communicating any other material considered to the licence it offends against the principles of natural justice.
Board of Education v. Rice et al (1911) 80 L.J.K.B. 796 (HL) [[1911] A.C. 179.]
It is submitted that the course of conduct of the Commis sion right from the first appeal of North Coast Air Services Ltd. to the Supreme Court of Canada was to reinstitute route protection regardless of need or otherwise and having failed to succeed by regulations now attempts to do indi rectly that which it cannot do directly.
It is submitted that the Commission acted in a capricious and arbitrary manner in purporting to amend the licence of North Coast Air Services Ltd. along with 417 other licences according to a predetermined decision made on August 10th, 1970 or earlier that "public convenience and necessity requires that routes served by Class 1 and Class 2 Air Carriers should be protected against the operations by Class 4 Air Carriers". This despite cogent reasons put forward by North Coast Air Services Ltd. and other carriers against imposing route protection and no evidence in the material before it to the contrary.
To appreciate what weight if any there is in these objections, it is necessary first to review chronologically the relevant material to be found in the record. The following is what, as it seems to me, requires to be considered in this connection:
1. General Order No. 5/51, which was adopt ed on October 23, 1951, read, in part, as follows: 2
AND WHEREAS the Board is satisfied that Class 1 and Class 8 scheduled commercial air carriers who are required by Board regulations to maintain service at regu lar intervals according to a published schedule regardless of whether or not the traffic offered is sufficient to provide a profitable flight, ought, in order to ensure maximum loads, to receive protection from undue compe tition by carriers who are not so required;
AND WHEREAS the Board is satisfied that Class 2 and Class 9-2 non-scheduled commercial air carriers who are required by Board regulations to serve with some degree of regularity the points authorized to be served under their respective licences, and who are required to serve such points in accordance with a route pattern, ought also to receive some degree of protection against undue competition.
IT IS THEREFORE HEREBY ORDERED:
1. THAT no commercial air carrier may carry traffic between points named on the same licence of any Class 1 or Class 8 scheduled commercial air carriers or between points named on the same licence of any Class 2 or Class 9-2 non-scheduled commercial air carriers except in the following circumstances:
(While this order was subsequently found to be invalid, its validity had not been ques tioned when the appellant's Class 4 licence was issued in 1959 and it reveals the view of the Air Transport Board as to the conditions on which scheduled commercial air carriers and other commercial air carriers were to operate and gives some indications as to the reasons for that view.)
2. In 1968, General Order No. 5/51 was finally determined by the Supreme Court of Canada to be invalid.
3. On August 10, 1970, the Air Transport Committee of the Canadian Transport Com mission wrote to the appellant and to all other charter commercial air carriers as follows:
The Committee is considering the effect that the opera tion of each Class 4 air carrier has upon Class 1 and Class 2 air carriers in respect of traffic carried between points named in any one licence of such Class 1 and Class 2 air
carriers. Each Class 4 licence under consideration is being dealt with on its own merits.
Public convenience and necessity requires that routes served by Class 1 and Class 2 air carriers should be protected against the operation by Class 4 air carriers of charters between points named in any one licence of such Class 1 and Class 2 air carriers except as set out in the attached Schedule.
The Committee proposes to issue an Order amending your above-noted Class 4 licence accordingly by attach ing thereto the conditions set out in the Schedule to this letter.
Would you kindly acknowledge receipt of this letter not later than (September 24, 1970) by signing the copy thereof where indicated and returning the same to the undersigned with your representations, if any, as to why such conditions should not be attached to your licence.
(Attached to this letter as a result of a subse quent correcting letter was a schedule setting out the conditions that were subsequently set out in the order under attack in this proceeding.)
4. On August 25, 1970, the solicitor for the appellant wrote to the Air Transport Commit tee challenging the course of action set out in the Committee's letter of August 10, as he understood it, and, on October 19, 1970, the Committee replied to that letter in part as follows:
There would appear to be some misunderstanding on your part as to the intent and purpose of the Committee's letter of August 10, 1970. Briefly, the letter expresses the Committee's intent to examine on its merits the Class 4 licence of your client with a view to ascertain whether the licence, which issued in 1959 pursuant to section 15 of the Act, still meet the requirements of the Aeronautics Act as they exist today. The examination is not initiated for the purpose of singling out your client, as all Class 4 licences are being examined.
The purpose of our sending to all Class 4 carriers our letter dated August 10th was to obtain their views on our proposal, canvass their submissions with a view to deter mine if there was reason to alter our proposal—not with a view to introduce nor approve regulations respecting route and base protection.
5. Under cover of a letter dated September 22, 1970, the solicitor for the appellant sub mitted to the Air Transport Committee the appellant's submissions with respect to the "determination by the Board" contained in the letter of August 10. This document made
detailed submissions, which it summarized as follows:
In summary, therefore, North Coast submits firstly that the Air Transport Committee of Canadian Transport Commission is without jurisdiction to re-institute route protection in any manner, which issue was raised in an application for leave to appeal taken to the Supreme Court of Canada in 1969 and which application was withdrawn upon the agreement of the Committee to state a case to the Supreme Court of Canada to determine the issue once and for all, consequently the Committee should not deal with the question of route protection and base protection in any manner until the stated case has been heard.
Secondly, that since 1968 until now when free competi tion prevailed there has been no deterioration in service and in fact the air service has improved and the traffic increased.
Thirdly, that by re-instituting route protection and base protection North Coast would be put out of business.
Fourthly, that the re-institution of route protection would cause a deterioration rather than an improvement of air service.
6. On September 23, 1970, one of the Com missioners wrote to an official of the Depart ment of Transport, in part, as follows:
In accordance with our telephone conversation I am enclosing herewith the following:
1. Copy of a letter dated 10th August, 1970 to which I have attached schedules which I have marked "A" and "B" which was forwarded to all Class 4 licensees. Licensees whose base had been designated a protected base received schedule "A". Licensees who did not have a protected base received schedule "B".
2. Copy of a letter dated 10th August, 1970 respecting route protection which went forward to all Class 4 licensees to which I have attached a schedule which accompanied the aforementioned letter.
The purpose of amending the licences in the manner indicated was to take care of the situation that developed upon the Supreme Court finding that the Board's relevant General Orders were ultra vires. You will note in each case it is made clear that the Committee proposes to amend the licences as indicated but that the licensee is afforded an opportunity to make representations in that regard.
7. On July 2, 1971, the President of the Canadian Transport Commission wrote to the
President of the Air Transport Association of Canada as follows:
Immediately on its receipt, Mr. Belcher sent me a copy of your letter of June 29th regarding base and route protection. I can assure you that the Air Transport Com mittee and I as President of the Canadian Transport Commission have been at least as much concerned as your Association about the uncertainties in this situation.
It should, however, be recalled that over a year ago the Air Transport Committee reached the conclusion that, short of an amendment of the law by Parliament, the most effective way in which the problem could be met was by the amendment, where appropriate, of licences of individual carriers and that your Association and others in the industry were invited to comment on the proposed action of the Committee.
I met with the Air Transport Committee today and the Committee has decided to proceed without delay to follow the course we first proposed more than a year ago with respect to the amendment of individual licences.
While it will, of course, be necessary to take account of the replies to letters sent out last, August to all Class 4 carriers, we intend to proceed progressively on a sys tematic basis to deal with these licences. We welcome the assurance in your letter of June 29th of the active support of the Air Transport Association of Canada in the course we are taking.
8. On October 20, 1971, the Air Transport Committee made the order under attack in these proceedings, which reads as follows:
WHEREAS by Licence No. A.T.C. 1016/59(C), North Coast Air Services Ltd. is authorized to operate a Class 4 Charter commercial air service from a base at Prince Rupert, B.C., in accordance with the Conditions of the said Licence;
WHEREAS by registered letter dated August 10, 1970, in the matter of carriage of traffic by the Licensee between any points on a route served under any one Class 1 or Class 2 Licence, the Committee advised the Licensee that it proposed for the reasons stated therein, to issue an Order amending the aforesaid Licence by attaching thereto the Conditions set out in the Schedule to the said letter, and required the filing not later than September 24, 1970 of representations, if any, by the Licensee as to why such conditions should not be attached to the said Licence;
WHEREAS the Licensee filed a representation with the Committee by letter dated September 22, 1970.
AND WHEREAS the Committee has considered the said representation and all matters relevant to the pro-
posed amendment and is of the opinion that the public convenience and necessity requires that the said Licence be amended to carry out effectively the intent and pur pose of Part II of the Aeronautics Act;
IT IS ORDERED THAT:
(1) For the purpose of this Order, "route" in respect of a commercial air service means the route served by a Class 1 or Class 2 Canadian air carrier between points named in any one licence when providing a transportation service described in the carrier's service schedule or service pattern filed with the Commission and in effect;
(2) For the purpose of this Order, "point" in respect of a unit toll commercial air service means a city, town or place named in a licence which a carrier is authorized to serve by such licence, and identified where necessary by reference to latitude and longitude and
(a) in respect of a point in Class 1 Licence, comprises an area 25 miles in radius measured from the main post office of such point or from the latitude and longitude of such point; and
(b) in respect of a point in a Class 2 Licence, com prises an area 10 miles in radius measured from the main post office of such point or from the latitude and longitude of such point;
(3) Licence No. A.T.C. 1016/59(C) be and is hereby amended by adding the following Conditions:
The Licensee is prohibited from carrying traffic between any points on a route except in any of the following circumstances:
(a) where the Licensee holds a Class 1 or Class 2 licence in respect of the points affected;
(b) where, in respect of a route, the distance between any two points on the route as served and between which the charter flight is intended, is greater than one and one-half times the direct distance between such points;
(c) where the Class 4 Charter flight originates or termi nates at a point not included on a route if no local traffic is carried by the Licensee between any two points on such route;
(d) where, in respect of a route, no scheduled or regu lar unit toll service is offered on the day of the charter flight and the route carrier is not in a position to provide the required transportation on a comparable basis;
(e) where, in respect of the Class 4 Charter service, the Licensee uses aircraft having a maximum authorized take-off weight on wheels of 2,500 pounds or less, and where;
(i) the largest aircraft operated on the route by the Class 1 or Class 2 air carrier as indicated in his service schedule or service pattern is an aircraft having a maximum authorized take-off weight on wheels of less than 25,000 pounds, and
(ii) the Class 1 or Class 2 air carrier is not licensed to provide charter service with aircraft having a max imum authorized take-off weight on wheels of 2,500 pounds or less, or if so licensed is unable to provide service with comparable aircraft, within three hours of a request therefor;
(f) where, in respect of the Class 4 Charter service, the Licensee uses aircraft having a maximum authorized take-off weight on wheels of 7,000 pounds or less, and where;
(i) the largest aircraft operated on the route by the Class 1 or Class 2 air carrier as indicated in his service schedule or service pattern is an aircraft having a maximum authorized take-off weight on wheels of 25,000 pounds or more but less than 50,000 pounds, and
(ii) the Class 1 or Class 2 air carrier is not licensed to provide charter service with aircraft having a max imum authorized take-off weight on wheels of 7,000 pounds or less, if so licensed is unable to provide service with comparable aircraft, within three hours of a request therefor;
(g) where, in respect of the Class 4 Charter service, the Licensee uses aircraft having a maximum authorized take-off weight on wheels of 18,000 pounds or less, and where;
(i) the largest aircraft operated on the route by the Class 1 or Class 2 air carrier as indicated in his service schedule or service pattern is an aircraft having a maximum authorized take-off weight on wheels of 50,000 pounds or more, and
(ii) the Class 1 or Class 2 air carrier is not licensed to provide charter service with aircraft having a max imum authorized take-off weight on wheels of 18,000 pounds or less, or if so licensed is unable to provide service with comparable aircraft, within three hours of a request therefor;
(h) where the Class 4 Charter flight is operated for reasons of public health or safety;
(i) where the Class 4 charter service is operated for a limited period with the written concurrence of the affected Class 1 or Class 2 air carrier;
(j) where the Committee specifically authorizes the Licensee, in writing, to perform a charter service over a route.
(k) The charter flights permitted herein shall not be offered or operated with any degree of regularity or frequency.
This Order shall form part of Licence No. A.T.C. 1016/59(C) and shall remain attached thereto.
In so far as I have appreciated the argument before us, that is all the material in the "case" on which this proceeding is to be determined that has been said to bear on the question whether Order No. 1971-A-331 was validly made by the Air Transport Committee.
In the first place I should say that I have no doubt that, when a commercial air service licence has been granted under section 16(1) of the Aeronautics Act and the licensee has gone into business in accordance with the authority so granted to it, the Commission can only exer cise its power under section 16(8) to suspend, cancel or amend that licence when it has formed its opinion that the public convenience and necessity so requires after it has afforded the licensee "a fair opportunity for correcting or contradicting any relevant statement prejudi cial to (his) view". (Compare Board of Educa tion v. Rice [1911] A.C. 179 per Lord Loreburn L. C at p. 182.) It was not seriously contended before us to the contrary. I have not in mind any decision which applies this principle to a case such as is now under consideration when there is no statutory provision for a "hearing"; and I am aware of no authoritative general rule for deciding when the principle applies and when it does not. (Compare Durayappah v. Fernando [1967] 2 A.C. 337 per Lord Upjohn at pp. 348 and following.) Nevertheless, having regard to the realities of modern commercial life, it seems to me that the requirements of natural justice are just as applicable to the cancellation or amendment of a licence of indefinite duration for the operation of a sub stantial transportation undertaking as they are to the deprivation of property in the traditional sense.
There are two serious questions in this case that have to be faced, as I appreciate the matter, in considering whether it can be said that the Commission did afford to the appellant a fair opportunity for correcting or contradict ing any relevant statement prejudicial to the
appellant's position before reaching its decision that the public convenience and necessity required that the conditions in question be attached to the appellant's licence. These ques tions are:
(a) Did the Commission make a final decision that public convenience and necessity required that the conditions be attached to the appellant's licence before writing the letter of August 10, 1970, giving the appellant an opportunity to make representations? and
(b) Did the appellant, at the time that it was given an opportunity to make representations, know what the statements prejudicial to its position were, so that it had an opportunity to correct or contradict them?
With reference to the first question—i.e. whether the Commission had finally decided that public convenience and necessity required that the conditions be attached to the appel lant's licence before writing the letter of August 10, 1970—it is necessary to look at the letter of August 10. That letter stated, without qualifica tion, "Public convenience and necessity requires that routes served by Class 1 and Class 2 air carriers should be protected against the operation by Class 4 carriers of charters between points named in any one licence of such Class 1 and Class 2 air carriers except as set out in the attached Schedule". It is true that it also says that "Each Class 4 licence under consideration is being dealt with on its own merits" and that it concludes by inviting "re- presentations, if any, as to why such conditions should not be attached to your licence". Never theless, the statement of the previously deter mined requirement of public convenience and necessity is so categorical as to appear to leave no possible room for any meaningful represen tations. If the matter had been left there, I doubt that I should have been able to escape the view that the Commission had taken its final decision without giving any opportunity for representations. However, the Commission did subsequently clarify its intention when it wrote to the appellant's solicitors on October 19, 1970 and said:
There would appear to be some misunderstanding on your part as to the intent and purpose of the Committee's letter of August 10, 1970. Briefly, the letter expresses the Com mittee's intent to examine on its merits the Class 4 licence of your client with a view to ascertain whether the licence, which issued in 1959 pursuant to section 15 of the Act, still meet the requirements of the Aeronautics Act as they exist today. The examination is not initiated for the purpose of singling out your client, as all Class 4 licences are being examined.
The purpose of our sending to all Class 4 carriers our letter dated August 10th was to obtain their views on our proposal, canvass their submissions with a view to deter mine if there was reason to alter our proposal—not with a view to introduce nor approve regulations respecting route and base protection.
While the appellant had in the meantime filed its representations, there was plenty of time after this letter for it to have made further representations before the order was finally made on October 20, 1971, if it had been misled by the dogmatic way in which the letter of August 10, 1970 had been framed. In the cir cumstances, it appears to me that the course taken by the Commission falls on the right side of the line drawn by Bankes L.J. in The King v. Port of London Authority [1919] 1 K.B. 176, where he said at p. 184:
There are on the one hand cases where a tribunal in the honest exercise of its discretion has adopted a policy, and, without refusing to hear an applicant, intimates to him what its policy is, and that after hearing him it will in accordance with its policy decide against him, unless there is something exceptional in his case. I think counsel for the applicants would admit that, if the policy has been adopted for reasons which the tribunal may legitimately entertain, no objection could be taken to such a course. On the other hand there are cases where a tribunal has passed a rule, or come to a determination, not to hear any application of a particular character by whomsoever made. There is a wide distinction to be drawn between these two classes....
This approach was referred to with approval in Re Hopedale Developments Ltd. and Town of Oakville (1964) 47 D.L.R. (2d) 482 by McGilliv- ray J.A. giving the judgment of the Ontario Court of Appeal, at pp. 486-7, where he refers to other cases applying the same principle.
I might add on this aspect of the matter that I do not find it too surprising that, of over 400 charter carriers affected, only some 58 filed representations and that none of them persuad ed the Commission to change its policy. We
must assume that the Commission had given care to working out a policy that met all problems.
I turn now to the second question to which I have referred, namely: Did the appellant, at the time that it was given an opportunity to make representations, know what the statements pre judicial to its position were, so that it had an opportunity to correct or contradict them?
In this connection, when reference is made to the letter of August 10, 1970, it appears that the only relevant statement is the one to which I have already referred, namely, that "Public con venience and necessity requires that routes served by Class 1 and Class 2 air carriers should be protected against the operation of Class 4 air carriers ... as set out in the attached Schedule". This is no more and no less than a statement of the matter which, under section 16(8), is exclusively a matter for the opinion of the Commission. Such an opinion, however, must, I should have thought, be based on a factual situation and it is the statement of that factual situation which, in my view, the appel lant should have had an opportunity to correct or contradict.
The question is, therefore, whether the appel lant was in the dark as to the factual basis for the proposed attachment of conditions to its licence. On the face of the proposal, it was clear that this was not something special to the appel lant's licence. It was a general conclusion by the Commission that routes served by all Class 1 and Class 2 air carriers should be protected against the operations of all Class 4 air carriers to the extent contemplated by the proposed conditions. The probable, if not obvious, factual basis for such a conclusion that jumps to mind is that that appears from the recital in General Order 5/51 where reference is made, for exam ple, to scheduled commercial air carriers "who are required by Board regulations to maintain service at regular intervals according to a pub lished schedule regardless of whether or not the traffic offered is sufficient to provide a profit able flight". I do not find that the appellant showed any sign of having been at a loss as to
what possible basis there could have been for such a general rule as that with which it was being faced. If it had had any doubt as to the factual basis, it was well represented and I am sure would have taken steps to ascertain what the facts were. Indeed, I think that the balance of probability is that any person involved in, or familiar with, this type of regulated transporta tion industry knows, without being told, of the factual situation that gives rise to the necessity of considering some form of route protection for scheduled operators.
With considerable doubt, having regard to the manner in which the matter was put to the appellant by the Commission, I have concluded that the essentials of natural justice were com plied with.
In my, view the appeal and the application must be dismissed.
Before leaving the case, I deem it important to say that I do not accept the view that, if the result were otherwise and the decision of this Court were to set aside the order imposing the conditions on the appellant's licence on the ground that there had been a failure to comply with the principles of natural justice, the result would be a fatal blow to the Commission's scheme of regulation. Once it is established that the Commission has authority to attach the con ditions if it does so properly, a decision to exercise that authority without giving a fair hearing is not a nullity but is merely voidable at the option of the person directly concerned (see Durayappah v. Fernando [1967] 2 A.C. 337 per Lord Upjohn at pp. 352-3). In the case of an order that has been successfully attacked by way of appeal on that ground, the matter would presumably be sent back to the Commission for determination in accordance with such direc tions as the Court deems appropriate. (Section 52(1)(c) of the Federal Court Act.) In the case of an order that had not been attacked within the time limit fixed by section 64(2) of the National Transportation Act, it would presum ably be too late to launch an attack except where there are "special circumstances" that warrant extending the time for applying for leave to appeal.
WALSH J. (orally)—The facts giving rise to these proceedings are set out succinctly in the reasons for judgment of the Chief Justice so it would be superfluous to repeat them in full here.
After the Supreme Court judgment in the case of North Coast Air Services Ltd. v. Canadian Transport Commission [1968] S.C.R. 940 declaring invalid inter alia order 5/51 of the Air Transport Board since it had not been approved by the Governor in Council as required by the Act, the Act was amended and section 14(1)(b) provided that the Commission might make regulations "prescribing the terms and conditions to which licences issued under this Part shall be subject". On June 11, 1969, the Air Transport Committee of the Canadian Transport Commission amended the Commer cial Air Service Regulations to provide prohibi tions or restrictions in the nature of the old general order 5/51 which had been declared invalid. North Coast Air Services Ltd. brought an application for leave to appeal to the Supreme Court of Canada questioning the juris diction of the Committee to pass regulations dealing with route protection, inter alia. After some discussion between counsel it was agreed, as confirmed by letter of September 5, 1969, from J. M. Fortier, Q.C., on behalf of the Canadian Transport Commission that a stated case would be presented to the Supreme Court on the jurisdiction of the Committee to pass regulations on the subject of base protection and route protection; that meanwhile the regula tions complained of on this subject would be rescinded, that the Air Transport Committee would not introduce or approve any regulations on the said subjects until the stated case had been disposed of by the Supreme Court, and that on these conditions North Coast Air Serv ices Ltd. would discontinue its application for leave to appeal.
No stated case was ever presented to the Supreme Court but, as the Air Transport Com mittee did not introduce any further regulations on the said subjects, it complied with the express terms of the agreement. Appellant, North Coast Air Services Ltd., contends, how ever, that while it did not re-introduce any such regulations of general application under section 14 of the Aeronautics Act, it did accomplish the same result by applying section 16(8) of the Act so as to amend the licences of all Class 4 carriers of which appellant is one by including restrictions and prohibitions having substantial ly the same effect (save for certain special clauses lessening to some extent the scope of these restrictions), thus accomplishing indirect ly what it could not do directly. To accept this contention it would be necessary to conclude that the Commission could not have passed a regulation of general application under section 14 of the Act, and the Commission does not admit this. In the absence of a decision on a stated case to the Supreme Court which was never presented, the most that can be said is that its right to do so had been challenged by appellant. Since no such regulation is in issue before us it would be idle to speculate as to why the stated case was never presented by the Air Transport Commission but I cannot conclude that in proceeding instead to amend the licences of all Class 4 carriers by virtue of the provi sions of section 16(8) of the Act, the Commis sion was accomplishing indirectly what it could not do directly. The power to make regulations under section 14 of the Act is, in my mind, entirely separate and distinct from the licensing powers under section 16, and in the present case we are only concerned with the action which the Commission took under section 16.
Counsel for appellant contended that the Commission may only prescribe the routes to be followed or the areas to be served at the time a licence is first issued, since section 16(6) of the Act commences with the words "In issuing any licence", whereas section 16(8) merely states:
The Commission may suspend, cancel or amend any licence or any part thereof where, in the opinion of the Commission, the public convenience and necessity so requires.
He would therefore limit amendments to mat ters other than routes to be followed or areas to be served. I do not believe that a reading of section 16 as a whole justifies this interpreta tion. The section deals with licensing generally and indicates in subsection (6) the sort of condi tions which may be put in a licence when the Commission decides to issue same. I do not believe the words "In issuing a licence" relate specifically to the time at which these condi tions can be imposed and are intended to pre vent their being imposed at a later date by amendment. Subsection (8) permits not only the amendment but also the suspension or cancella tion of a licence at any time where, in the opinion of the Commission, the public conveni ence and necessity so requires. Clearly the requirements of public convenience and neces sity may vary from time to time and conditions which might be attached to a licence at the time of its issue because the Commission at that time considered them "necessary or desirable in the public interest", to use the wording of subsec tion (6), might well have to be amended at a later date by the application of subsection (8) because "public convenience and necessity" so requires.
There is no limit to the number of licences which the Commission may amend by the application of section 16(8) and in this case it chose to individually amend the licences of all Class 4 carriers, some 450 in all, in identical terms, and at the same time'. In using section 16(8), however, it is essential that in each individual case the Commission must be of the opinion that "public convenience and necessi ty" requires the amendment of that specific licence; otherwise it would, in effect, be issuing a regulation of general application which cannot be done under section 16(8). In the case of North Coast Air Services Ltd. v. Canadian Transport Commission (supra) Martland J., in rendering the judgment of the Court, says in reference to section 15(6) (now section 16(6)) at page 945:
With respect to this provision I agree with what was said by Tysoe J.A., in the North Coast Air Services Ltd. case, at p. 337 ((1968) 65 D.L.R. (2d) 334):
Section 15 appears to me to have no relation to licen sees as a group or class but to individual applicants for licences and licences issued to specific individuals. The General Order cannot be supported under that section.
Appellant contended that to amend the licence of a licensee so as to restrict his opera tions after he has invested substantial sums for planes and equipment is to deprive him of acquired rights, but I do not find that this argu ment can stand up against the unrestricted right to amend given in section 16(8) when, in the opinion of the Commission, "public conveni ence and necessity" so requires. Considerations of public convenience and necessity may, in some circumstances, prejudicially affect the rights of any individual but this cannot prevent the Commission from applying section 16(8). Moreover, in the present case appellant had been operating under regulation 5/51 which had been in effect for some eight years before appellant was licensed in 1959. Its licence was subject to this regulation which was only found to be invalid by the Supreme Court judgment of 1968. The amendment to its licence which is now being attacked is more liberal in its provi sions than the restrictions imposed under the said regulation. From the practical point of view, therefore, it only realized it had an unre stricted licence following the Supreme Court judgment and it is these rights of relatively short duration which are again being curtailed by the amendment to its licence.
In proceeding to make the amendments to the licences of all Class 4 licensees holding licences as of August 10, 1970, the Air Transport Com mittee wrote each of them a letter which in its first paragraph indicates that it is considering the effect of the operation of each Class 4 air carrier on Class 1 and Class 2 air carriers in respect of traffic carried between points named in any one licence of each Class 1 and Class 2 air carrier and that each Class 4 licence is being dealt with on its own merits. The next para graph indicates (which appears to be a conclu sion already reached by the Committee) that
public convenience and necessity requires that routes served by Class 1 and Class 2 air carriers should be protected against the operation by Class 4 air carriers between such points (sub- ject to exceptions set out in a Schedule). The third paragraph indicates that the Committee proposes to issue an order to amend the addres see's Class 4 licence by attaching the conditions as set out in the Schedule. The final paragraph invites representations, if any, as to why these conditions should not be attached to the licence of the addressee.
It is clear that the conclusion of the Commit tee that public convenience and necessity required the protection of Class 1 and Class 2 air carriers as indicated had already been reached and the terms and conditions of the amendment to the licence decided upon before this letter was sent, but there is no indication as to the nature of the evidence or facts on which these decisions had been made. There was therefore no confrontation of any of the licen sees in general or appellant in particular with the facts on which the Committee had reached its conclusions relating to public convenience and necessity or the terms of the proposed amendments to the licence such as to enable the licensees to dispute the validity of same, meet them with other evidence, or make any representations before these conclusions were reached. Instead, each licensee was merely invited to make representations as to why these conditions should not be attached to his licence. There was no opportunity given to any individu al licensee to seek modification of the condi tions themselves. Either he had to accept the conditions which were to be included in the licence of each Class 4 licensee as drawn, or seek to be exempted from these modifications entirely 2 . In the event, no one was so exempted although 58 licensees made representations pre sumably as to why such conditions should not be attached to their licences.
In due course, on October 20, 1971, order No. 1971-A-331 was issued amending appel lant's licence 1016/59 (and on the same date
identical orders were issued to the other 450 odd Class 4 licensees, whether or not they had made representations requesting that they be exempted from application of the order) which order refers to the representations made by appellant, goes on to say "Whereas the Com mittee has considered the said representation and all matters relevant to the proposed amend ment and is of the opinion that the public con venience and necessity requires that the said Licence be amended" and then issues the amendment without any changes from the proposal set out in its letter of August 10, 1970.
Of interest in this connection are two letters. The first is one from J. W. Pickersgill, Presi dent, Canadian Transport Commission to A. C. Morrison, President, Air Transport Association of Canada, dated July 2, 1971 which reads in part:
... over a year ago the Air Transport Committee reached the conclusion that, short of an amendment of the law by Parliament, the most effective way in which the problem could be met was by the amendment, where appropriate, of licences of individual carriers ...
and again
I met with the Air Transport Committee today and the Committee has decided to proceed without delay to follow the course we first proposed more than a year ago with respect to the amendment of individual licences.
While it will, of course, be necessary to take account of the replies to letters sent out last August to all Class 4 carriers, we intend to proceed progressively on a systematic basis to deal with these licences ...
The second letter is an internal letter dated September 23, 1970 from J. F. Clark, one of the Commissioners, to John T. Gray, Counsel for the Department of Transport, the second para graph of which reads:
The purpose of amending the licences in the manner indicated was to take care of the situation that developed upon the Supreme Court finding that the Board's relevant General Orders were ultra vires. You will note in each case it is made clear that the Committee proposes to amend the licences as indicated but that the licensee is afforded an opportunity to make representations in that regard.
The important question to be decided is whether the decision made with respect to the amendment to appellant's licence was made in a
manner contrary to principles of natural justice. It is common ground that this question can be dealt with on the appeal and it is therefore not necessary to go into the difficult question as to whether the Court has a right to review the order under section 28 of the Federal Court Act.
As has been stated in many cases the require ment of natural justice is really equivalent to "fair play" and is complied with if the appellant has been confronted with all the facts on which the finding against him has been based, has been given an opportunity of answering them, and an opportunity to make submissions him self, and have them listened to and considered.
The mere fact that a general rule is enunciat ed or a general principle formulated before the appellant is heard as to why an exception should be made in his case is not in itself objectionable, provided he is given an oppor tunity to be heard. This was clearly stated by Bankes L.J. in The King v. Port of London Authority [1919] 1 K.B. 176 at p. 184, (referred to in Re Hopedale Developments Ltd. and Town of Oakville 47 D.L.R. (2d) at page 486) where he states:
There are on the one hand cases where a tribunal in the honest exercise of its discretion has adopted a policy, and, without refusing to hear an applicant, intimates to him what its policy is, and that after hearing him it will in accordance with its policy decide against him, unless there is something exceptional in his case. I think counsel for the applicants would admit that, if the policy has been adopted for reasons which the tribunal may legitimately entertain, no objection could be taken to such a course. On the other hand there are cases where a tribunal has passed a rule, or come to a determination, not to hear any application of a particular character by whomsoever made. There is a wide distinction to be drawn between these two classes... .
In the present case, aside from the finding of the Commission that public convenience and necessity requires some route protection of Class 1 and Class 2 carriers from Class 4 carri ers, it is evident that consideration was given to a series of exceptions to be inserted in the amended licences relating to weight of aircraft to be used, distance between points, frequency of service, availability of comparable transpor tation from the route carrier and so forth. To
merely invite submissions from all Class 4 carri ers without first formulating some such pro posed exceptions and submitting them as a basis of discussion might well have resulted in a chaotic situation with every such carrier sub mitting different suggestions. I can find no fault therefore in the method adopted of setting out these proposed amendments in detail in the letter of August 10, 1970 and then inviting submissions as to why these conditions should not be attached to the licence (although it might have been preferable to also invite submissions as to the nature of these proposed amendments).
The findings of the Commission on "public convenience and necessity" are not subject to review on the merits by this Court, being within the sole jurisdiction of the Commission, but the principle of natural justice entitles the Court to enquire whether it appears that there was any evidence on which the conclusions of the Com mission could have been reached.
In the present case two decisions were involved:
(1) The decision of the Commission that public convenience and necessity requires protection from Class 4 carriers of routes served by Class 1 and Class 2 carriers; and
(2) The decision of the Air Transport Com mittee that no exception should be made in the case of the appellant from the application to its licence of the conditions proposed to be attached to each individual Class 4 licensee.
Appellant may well have had knowledge of the facts relied on by the Commission to reach the first decision which results from policy statements going back to a period long before appellant obtained its licence. However, even the Commission concedes that this policy is not so absolute as not to admit of any exceptions, and in fact insists that each individual licence amendment was considered individually to decide if an exception should be made. More-
over, it is apparent that if a Class 1 carrier such as Air Canada does not have protection from Canadian Pacific Airways on the trans-Canada route, some exceptions are made and some competition allowed on certain routes. In a country such as Canada with widely different conditions in different regions it is certainly not inconceivable that in certain areas it might not be a requirement of public convenience and necessity that a Class 4 carrier be prohibited from competing with a Class 1 or Class 2 carri er on certain routes. While the Commission remains the sole judge of this it must make the determination on the basis of the evidence before it in a fair manner or it will have infringed the requirements of natural justice. With respect to the first decision, I believe that appellant as an experienced air carrier must be deemed to have had knowledge of the reasons for the general policy decision that some pro tection must be given to Class 1 and Class 2 carriers from competition from Class 4 carriers on the basis of public convenience and necessi ty, and if it wished to attack this, the case which it would have to meet, and it would be superflu ous to require the Commission to disclose in its letter to each Class 4 air carrier the voluminous evidence which it had undoubtedly acquired over the years as a result of its investigations which would justify this conclusion. In fact, appellant did not raise this issue in its submis sions to the Commission or request a hearing on the question of policy, but confined itself to an attack on the method adopted to re-institute route protection, and submissions as to why in any event this should not be applied in the area served by it. The decision by the Commission on the question of general policy was presum ably based on studies made over a period of many years going back to the early days of commercial aviation in Canada, and would fall within the dictum of Lord Loreburn, L.C. in Board of Education v. Rice [1911] A.C. 179 where he states at page 182 in commenting on the duties of Boards in general:
They can obtain information in any way they think best, always giving a fair opportunity to those who are parties in the controversy for correcting or contradicting any relevant statement prejudicial to their view.
I do not believe that in the present case it can be said that the appellant was not given an opportunity to be heard. On the contrary, it made submissions as to why the proposed amendment to its licence should not be made. The more difficult question is the second one, namely, whether due consideration was given to its representations before it was decided that no such exception should be made.
This is the decision which appellant is really seeking to have set aside. It made serious representations indicating that despite its activi ties its Class 1 and Class 2 competitors had prospered and expanded their business greatly in the preceding three years, that if base protec tion were imposed there would be very few places to which it could fly since all main points in its area were already assigned to its competi tors, that the services it was providing were not really competitive with those of the Class 1 and Class 2 carriers in the area, and so forth. The validity of these arguments is something to be determined by the Commission alone but it appears to me that they would have to be con sidered on the basis of an examination of the economic situation of air carriers and the traffic in appellant's immediate area, and not on the basis of the establishment of fixed uniform restrictions imposed as a matter of public con venience and necessity on all Class 4 carriers in Canada. If the sole reason for imposing the same amendment to appellant's licence as were imposed on all other Class 4 carriers in Canada was that it is a Class 4 carrier, then due consid eration would not have been given to its licence as an individual case to determine whether an exception should be made or not.
The Committee states that it has considered appellant's representations and there is certain ly no reason to doubt that this is so, but neither the appellant nor the Court is given any indica tion of the nature of the other evidence before it, if any, relating to the specific economic situa-
Lion of appellant's competitors in the area, of any traffic studies made there, or anything to indicate that the decision was made otherwise than on the basis of general policy applicable to all Class 4 licensees in Canada. The wording of the order amending appellant's licence is identi cal with the wording of the orders relating to all other Class 4 licences.
The wording of the letter of August 10, 1970 setting out the reasons for and terms of the proposed amendments, the wording of Mr. Pickersgill's letter and the wording of Commis sioner Clark's letter all indicate an intention to amend the licences as indicated, although refer ring to the opportunity to be given to the licen see to make representations. The fact that no exceptions were made in favour of any of the 58 licensees who made representations might seem to indicate, as appellant contends, the application of a general policy to all Class 4 licensees in the interest of public convenience and necessity rather than an individual separate examination of the case of each licensee such as is required by section 16(8).
Nevertheless, the order eventually issued on October 20, 1971 amending appellant's licence states: "Whereas the Committee has considered the said representation and all matters relevant to the proposed amendment" (italics mine) and there is no evidence to dispute this nor to indicate that the Committee did not have in its possession economic and traffic studies and reports relating to the region where appellant operates and give due consideration to them, before rejecting appellant's application to be excepted from the amended regulations. While the jurisprudence requires that a party must be faced with the facts on which a decision affect ing him is to be made and given an opportunity of answering them, it appears doubtful whether it goes so far as to say that when he has made submissions or representations he must then be confronted with whatever facts have been pre sented in rebuttal of what he has alleged and be given a further opportunity to answer such evi dence. In order to conclude that the Commis sion, in deciding to amend appellant's licence, did not consider any evidence relating specifi-
cally to it as opposed to. evidence relating to Class 4 air carriers generally, it would be neces sary to base this on an assumption that this must be deduced from the fact that no .excep- tions have been made to date for any Class 4 licensees. I do not believe such an assumption can be made in face of the positive statement in the order that "all matters relevant to the pro posed amendment" (i.e. the amendment to appellant's licence) have been considered.
It appears that the Commission considered that the exceptions made in the amendment were sufficiently flexible to be applicable on grounds of "public convenience and necessity" to all Class 4 licensees and that despite submis sions made by 58 of them they could all be fitted within the framework of the amendment.
While I have reached this conclusion not without considerable hesitation, it would appear that the Commission did not infringe the rules of natural justice in the decision made with respect to appellant's licence, since there is no positive evidence on which a finding can be made that due consideration was not given to its submissions. I believe that the judgment of Bankes L.J. in The King v. Port of London Authority (supra) is directly in point. The Com mittee cannot be said to have refused to hear appellant's submissions, but it has merely decid ed against it on the basis that there is nothing exceptional in its case to justify a departure from the policy of inserting an amendment in its licence on the same terms as that inserted in the licences of all other Class 4 carriers. This is a decision which the Committee was entitled to make.
Appellant could have applied to the Review Committee of the Commission to review the decision, pursuant to Rule 770 of the Canadian Transport Commission's General Rules, it could have appealed to the Minister under section 25(2) of the National Transportation Act, it could have applied to the Committee for an amendment to the order, it could have appealed to the Governor in Council under section 64 of the National Transportation Act, or finally with leave of the Court it could have appealed to the
Court of Appeal on a question of law or juris diction under section 64 of the said Act, as it has done.
The fact that it adopted the present procedure does not in any way affect its rights but the fact that these various remedies existed indicates the extent to which the statutes have provided protection for licensees against unjust cancella tions of or amendments to their licences.
I would dismiss the present appeal, without costs.
* * *
SHEPPARD D.J.—I agree with the result in the reasons for judgment of the Chief Justice and with his reasoning, assuming that duty in respect of natural justice held by the Chief Justice should be on the Commission. Assuming that duty to be on the Commission, then I agree that the results obtained by the Chief Justice would follow. I differ with the learned Chief Justice only in holding that no such duty is on the Commission.
As to the duty, by reason that the Commis sion is a statutory body, it is for Parliament by statute to declare under what circumstances the power of amending a licence then issued, has been conferred on the Commission. Section 16(8) of the Aeronautics Act (R.S.C. 1970, c. A-3) confers that power "Where in the opinion of the Commission, the public convenience and necessity so requires." Hence there is only one condition, namely that which the public con venience and necessity so requires and that is the only condition of the exercise of the power to amend. Further, section 16(8) states that such convenience and necessity may be "in the opinion of the Commission". As the conveni ence and necessity may be in the opinion of the Commission, then such opinion is within Liver- sidge v. Anderson [1942] A.C. 206, and may be acquired by the expert opinion of the members of the Commission without any hearing, par ticularly having regard to section 11 which per mits the Commission to regulate its proceedings or may be acquired by any hearing arranged as the Commission may choose, pursuant to sec-
tion 1 1. In any event, there is no legal obligation on the Commission to give any specific kind of notice or to hear any representation by anyone or even to proceed in a judicial manner within United Engineering Workers Union v. Devanayagam [1967] 2 All E.R. 367, [1968] A.C. 356.
The appeal is therefore dismissed.
JACKETT C.J.:
I am not overlooking that, under section 14(1)(b), the Commission may make regulations "prescribing the terms and conditions to which licences issued under this Part shall be subject". There is no attempt to exercise this power before us and, in any event, I doubt that such a regulation would apply to a licence that was issued before the regula tion was made. Compare Chappelle v. The King [1904]A.C. 127, and Attorney General of Alberta v. Haggard Assets Ltd. (P.C.) [1953] 2 All E.R. 951.
2 This order was not included in the "case" as fixed by the order of November 23, 1971, but counsel agreed during argument that the order as found in Regina v. North Coast Air Services Ltd. 65 D.L.R. (2d) 334 at pp. 335-6 should be treated as part of the "case".
* * *
WALSH J.:
The only Class 4 carriers whose licences have not yet been so amended are those whose licences were issued after August 10, 1970 on which date a form letter was written to all Class 4 carriers indicating the intention to amend their licences in the manner indicated and inviting representa tions as to why the conditions should not be attached to the licence of each particular licensee, and it is conceded that these other licences will, in due course, be amended on the same terms.
2 In the case of appellant it might perhaps be said that this was somewhat modified by a letter dated October 19, 1970 to its attorney from the Secretary of the Air Transport Committee, the third paragraph of which reads: "The pur pose of our sending to all Class 4 carriers our letter dated August 10th was to obtain their views on our proposal, canvass their submissions with a view to determine if there was reason to alter our proposal—not with a view to introduce nor approve regulations respecting route and base protection".
 You are being directed to the most recent version of the statute which may not be the version considered at the time of the judgment.