C. The Hearing

Applicant's operating manager, Abulghasem Ahmadpour, has been in the transportation business for over 28 years (Tr. 20) and currently holds charter-party passenger permit TCP-12938 (Tr. 23). Applicant contemplates service by 30 vans, though it will initially operate only four (Tr. 147). Drivers will be owner-operators (Tr. 189). The financial information filed pursuant to the Commission's Rules of Practice and Procedure (Rules) 17(h) and 21(i) was challenged by Protestant during cross-examination. Without detailing the multiple problems that were uncovered, it is sufficient to indicate that Ahmadpour agreed that the balance sheet was not reliable (Tr. 138). During a recess, Applicant submitted a new balance sheet and income statement (Tr. 186), which became Exhibit (Exh.) 14. This proved to be an unaudited document (Tr. 233) containing whatever numbers were given to its creator by Ahmadpour (Tr. 234.). Ahmadpour acknowledged that there were a lot of things wrong with Exh. 14 (Tr. 242), perhaps up to 20-30% (Tr. 238).

Ebi Esuli sponsored the pro forma income and expense statement attached to the application. Cross-examination showed that the expenses estimated in this document were considerably understated.

During cross-examination it was also developed that Applicant had purchased advertisements in various telephone books seeking passengers for its shuttle service although it has not yet obtained authority to perform such service (Exh. 13). These advertisements offered the public the use of a towncar and a large bus (Tr. 152-153). Ahmadpour admitted that he has no such vehicles, but intends to put them in service (Tr. 152-153). As to the telephone advertisements, he explained that he needed to put the items in the phone books or miss a yearly cycle. Thus, he anticipated the granting of his certificate (Tr. 153, 246). When he receives a customer's inquiry regarding shuttle service he tells the customer that he is "booked up" and refers them to another carrier (Tr. 249-250).

Protestant presented Desmond Sandlin, owner of Protestant. He described the history of his company and the efforts and cost incurred in reaching its present successful condition. He also compared Protestant's fares with those proposed by Applicant to show that Protestant offers cheaper fares than will Applicant (Tr. 269-270).

Protestant sponsored Judy Christian, Ground Transportation Manager at LAX. Christian described the system employed at LAX for admitting airport shuttles to the various terminals. Only concession carriers, such as Protestant (Exh. 5), are permitted to all eight terminals. They pay a circuit fee of $5 for each circuit of the terminal area (Tr. 31). The remainder may only pick up passengers at Terminal 2, and pay a circuit fee of $1.50 (Tr. 47). Passengers deplaning at other than Terminal 2 who do not wish to employ a concession carrier must use an LAX courtesy shuttle to Terminal 2 (Tr. 49). Sandlin testified that the inconvenience to the public in waiting for the courtesy shuttle could last 30 minutes or more (Tr. 284), plus the problem of loading and unloading luggage into the courtesy vehicle.

Finally, in response to the ALJ, Sandlin stated that if anyone were to go through the difficulty of obtaining a concession from LAX and pay the $5 loop fee he would welcome the competition (Tr. 294).