HomeMy WebLinkAbout7825 - Pacific Southwest AirlinesRESOLUTION NO. 7825
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF NEWPORT BEACH OPPOSING THE ISSUANCE OF AN
ORDER AUTHORIZING PURCHASE BY PACIFIC SOUTHWEST
AIRLINES OF CONTROL OF AIR CALIFORNIA, AND
OPPOSING THE TRANSFER BY AIR CALIFORNIA TO
PACIFIC SOUTHWEST AIRLINES OF CERTIFICATES OF
PUBLIC CONVENIENCE AND NECESSITY
WHEREAS, on January 6, 1972, Pacific Southwest Airlines
consummated an agreement with Westgate California Corporation for
purchase of the controlling interest in Air California owned by
Westgate; and
WHEREAS, pursuant to Section 2758 of the Public Utilities
Code the purchase requires the prior approval of the California
Public Utilities Commission; and
WHEREAS, the City of Newport Beach has a substantial interest
in the proceeding, and has been granted leave by the Commission to
intervene; and
WHEREAS, plans for preservation of Upper Newport Bay and
the substantial investment in existing recreational facilities in
the Newport Harbor area are seriously jeopardized by the continued
expansion of operations from Orange County Airport; and
WHEREAS, such commercial jet aviation operations are
completely incompatible with the surrounding residential environment,
and this conclusion has been supported by numerous technical
investigations; and
WHEREAS, Orange County Airport is among the facilities
contemplated for commercial jet operations under the proposed purchase
agreement; and
WHEREAS, Air California is a local corporate concern with
home offices in Newport Beach; and
WHEREAS, the present company management and ownership
through various actions have demonstrated a willingness to cooperate
with the City of Newport Beach in taking measures to abate the noise
pollution created by jet overflights; and
WHEREAS, there is reasonable uncertainty that the proposed
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purchase agreement is essential to permit a continuation of the
company's present business operations; and
WHEREAS, Air California is making suitable progress toward
profitability as a business enterprise, and no realistic grounds
can be found for a conclusion that the company is insolvent,
facing bankruptcy, or is a "failing company ", and
WHEREAS, the application presents no enforceable technique
for insuring compatibility of the consolidated companies' operations
with business constraints necessary to meet the environmental
objectives of the City of Newport Beach; and
WHEREAS, approval of the application would appear to
restrain competition, and the Public Utilities Commission has an
established policy of fostering such competition to protect the
public interest; and
WHEREAS, the short haul air transportation needs of the
public are now being adequately met by Air California under its
present ownership and management, and
WHEREAS, the application before the Commission contains no
compelling evidence that the traveling public will receive improved
or more diversified service than that now provided by Air California
under its present ownership and management;
NOW, THEREFORE, BE IT RESOLVED that the City Council of
the City of Newport Beach urges the Public Utilities Commission of
the State of California not to approve the application of Pacific
Southwest Airlines for purchase of a controlling interest in Air
California, and to find that such application is not in the public
interest;
BE IT FURTHER RESOLVED that the City of Newport Beach
encourages the Orange County Board of Supervisors to support its
position against the acquisition, for the reasons herein stated,
and further urges said Board of Supervisors to take a personal and
active role in the Public Utilities Commission proceedings, through
the Office of its County Counsel.
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ADOPTED this 25th day of Sept er, 1972.
I,
OATTEST • Mayo Pro Tem
City Clerk PFB :mh