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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 -1- • c _ 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. La ADOPTED this 25th day of Sept er, 1972. I, OATTEST • Mayo Pro Tem City Clerk PFB :mh