Rates Application Decision (Limousine)

Transcription

1 Rates Application Decision (Limousine) Application # T Applicant BC Ltd. Trade Name (s) High End Limousine / Aerocar Service Principals SINGH, Clarence Address West Hastings St, Vancouver BC V6C 1A1 Current Authorization (s) Application Summary Special Authorization: Passenger Directed Vehicle Passenger AND General Authorization. PT Licence # Rates (Section 24 of the Passenger Transportation Act) Zone rates (Service 4 YVR contract) Publication Date June 4, 2012 Submissions Received None Board Decision Rates sought by the applicant are approved as set out in the application summary. Approved Rates are effective July 27, 2012 Decision Date July 18, 2012 Panel Chair William Bell I. Board Considerations: Section 7 of the Passenger Transportation Act states that the Board may approve, or set, for the purpose of establishing just and uniform charges, rates to be charged by a licensee in respect of passenger directed vehicles and approve any rule, practice or tariff of the licensee relating to those rates Generally, the Board may consider the following factors when making its decisions on the rates to be charged (and rules as to how rates are charged) for the operation of passenger directed vehicles: Transparency of rates and rules so that total charges and fares are reasonably predictable for paying passengers. Rates and rules do not cause confusion about when or how fares are determined for a particular passenger transportation service. Rates fall within industry norms for similar services in the area or, alternatively, in a comparable area. Rates and rules for non-taxicab services are distinct from the rates and rules of taxicabs in the area. Page 1 Passenger Transportation Board Limo Decision

2 II. Background BC Ltd., dba HighEnd Limousine and Aerocar (HEL) holds a General Authorization (GA) and Special Authorization (SA) licence. Under Service 4 of its licence, HEL is authorized to transport passengers that originate from the Vancouver International Airport (YVR) to any point in B.C. and beyond when in engaged in an extra-provincial undertaking. Zone rates are approved for this service. This application is seeking a rate increase for Service 4. In May 2009, HEL was awarded a contract by the YVR Authority to provide exclusive sedan and limousine service. At the time, it submitted a rate strategy to the YVR anticipating a 3 tier rate increase to take effect May 2009, July 2009 and November 2009 for its sedan, 6 and 8 passenger vehicles. At the request of YVR, HEL delayed implementation of its tier 1 rate increases until August These rates have now been in place for 20 months. HEL submits that a drop in tourism and increase in its expenses for fuel, insurance, maintenance and drivers expenses require it to raise its rates. Its current rates do not support sufficient revenues considering its volume of trips. The increase will ensure HEL s long term viability. HEL observes that its rates are too close to the metered taxi rates in many areas especially at YVR and that it seeks to position a premium experience for customers and to maintain a distinction in price and service from the taxi industry. As part of its application HEL included documents comparing current and proposed zone rates, profit and loss statements for 2009/10 and 2010/11 and a copy of an dated April 4, 2012 from Mr. Sat Gill, Manager, Ground Transportation, YVR, indicating that YVR supports this rate application. No submissions were received. III. Reasons for the Board s Decision As indicated by the applicant it has not implemented a rate increase since August, The financial documents submitted reflect increased operating costs. I further observe that the Board in a review on decision T had concerns that some downtown rates of the applicant appeared to be low; however, no changes were made as the review pertained to zone boundaries, not zone rates. I find the applicant has clearly outlined its rates and rules and how the fares apply to a particular zone and vehicle. HEL has not had an increase its rates for several years and the increases overall are modest. Further, the new rates do support a stronger distinction between HEL s rates and those of taxi providers in the operating area. This supports the integrity of local taxi services and the use of discretionary services as offered by HEL by removing any real or potential direct competition with the taxi industry. I find the applicant has supplied sufficient evidence in support of its request to increase its rates for Service 4 and I am prepared to approve this application in whole. Page 2 Limo Decision Passenger Transportation Board

3 IV. Conclusion For the reasons above, this application is approved as set out in the application summary. I establish the rates that are attached to this decision as Appendix I. These form an integral part of the decision. Page 3 Limo Decision Passenger Transportation Board

4 BC Ltd. High End Limousine Aerocar Service Appendix I (Rates Service 4 only) Rates DO NOT include tax No. Zone Sedan 6-PAX 8-PAX Richmond Zones 100 Sea Island North Richmond Central Richmond South Richmond / Steveston North East Richmond South East Richmond Far East Richmond Mitchell Island Vancouver Zones 200 Downtown / Kits Canada Place Ballantyne Pier Stanley Park UBC Central Vancouver South Vancouver South East Vancouver North East Vancouver North Shore Zones 300 North Van / West Van Lynn Valley Mount Seymour Parkway Deep Cove Central West Vancouver Cypress Bowl Mountain Caulfield / Horseshoe Bay Upper North Van / West Van Page 4 Limo Decision Passenger Transportation Board

5 Rates DO NOT include tax No. Zone Sedan 6-PAX 8-PAX Burnaby / New West Zones 400 Metrotown North Burnaby SFU / Burnaby Lake South East Burnaby New Westminster Queensborough / Annacis island Surrey / Delta Zones 500 Ladner South Delta Tswassen & Ferries Tilbury/River Road Surrey / Delta Zones 504 North Delta Newton / West Surrey Walley / Guildford Fraser Heights Fleetwood White Rock P. Moody / Coquitlam / Poco 600 P. Moody / Coquitlam Coq. Centre / Westwood Plateau South Port Coquitlam North Port Coquitlam Ioco / Anmore Belcarra Fraser Valley Zones 700 Cloverdale / West Langley Morgan Creek Langley / Walnut Grove South Langley Fort Langley / East Langley South East Langley Aldergrove Abbottsford Chilliwack Hope Page 5 Limo Decision Passenger Transportation Board

6 Rates DO NOT include tax No. Zone Sedan 6-PAX 8-PAX Pitt Meadows / Maple Ridge / Mission 800 Pitt Meadows North Pitt Meadows Maple Ridge East Maple Ridge Mission Aggassiz Harrison Hot Springs Sea to Sky Zones 900 Lions Bay Furry Creek Britannia Beach Squamish Whistler Pemberton USA 952 Bellingham Seattle Downtown Seattle Airport Page 6 Limo Decision Passenger Transportation Board