Public Convenience and Necessity

Applicant has asked for scheduled service between Long Beach/San Pedro and Avalon, as well as non-scheduled service between Long Beach/San Pedro and points on Santa Catalina Island. Two large ships, the Catalina King and Catalina Countess, which have recently been refitted by Applicant, will provide this service. Each ship is capable of carrying over 700 passengers. Proposed fare for round-trip service for a two-hour ride is $28.50, with senior fare (over 55) of $26 and children fare of $23. These are fares under which Applicant is presently operating pursuant to the interim authority granted in D.01-09-061, and are considerably cheaper than fares offered by other carriers using smaller and faster vessels for service to Avalon. There is no dispute of the need for this relatively low-cost fare. There are time slots available at the Port of Avalon for Applicant's vessels.

At the May 21, 2002 hearing, counsel for Applicant specifically agreed to a continuation of the conditions in Ordering Paragraphs 3 and 4 of D.01-09-061. These provisions mandated that no unauthorized passengers be allowed in the wheelhouse of the vessels, and that at least two crewmembers be at the doorway of its vessels and the boarding ramp to ensure safety of the passengers.