Licence Application Decision
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1 Licence Application Decision Limousine Additional Vehicles Application # AV Applicant Luxury Life Limousine Inc. Trade Name (s) Luxury Life Limousine Principals JHOOTY, Vikrambir JHOOTY, Jasbir Singh Address Current Authorization (s) Application Summary Date Published in Weekly Bulletin Submitters (and representatives) Board Decision 2391 McLennan Avenue, Richmond BC V6X 2N6 Special Authorization: Passenger Directed Vehicle Passenger. PT Licence #71969 (copy attached) Additional Vehicles Limousines 2 vehicles ( passengers and 1 sedan). The new maximum fleet size would be 4 vehicles ( passengers and 3 sedans). May 13, 2015 N/A 2 additional vehicles are approved. Rates will be set by the Rates and Rules for Limousines for Victoria, Vancouver & surrounding areas effective November 25, 2014 applies to these 2 vehicles. Decision Date June 24, 2015 Panel Chair Brenda Brown I. Introduction This is an application to add 2 additional limousines to Special Authorization (SA) PT licence # Currently this licence authorizes the operation of 2 specialty vehicles, namely Bentley Flying Spur sedans. The proposed 2 additional vehicles are a stretch SUV and a vintage Bentley sedan. II. Background The applicant, Luxury Life Limousine Inc. (LLL), was granted its SA in August, 2013 (165-13). The company reports it officially began its operation in April, The originating and destination areas are the GVRD and the FVRD. Page 1 Passenger Transportation Board Limo Decision
2 One of the applicant s principals, Vikrambir Jhooty, has operated AAA Movies for over 6 years; a company that specializes in wedding videography and photography. Mr. Jhooty operates the 2 companies with a business model that the 2 services are often requested by the wedding client. Following the first full year of operation, the applicant has identified a requirement for a stretch SUV and a vintage sedan to be added to its fleet. Supporting documentation included: PDV vehicle proposal PDV proposed terms and conditions Current rates Disclosure of unlawful activity and bankruptcy forms Liquor Control & Licensing Act signed declaration Condensed operating plan Business plan Financial information Support letters, affiliates, booking data III. Relevant Legislation Division 3 of the Passenger Transportation Act (the Act ) applies to this application. The Act requires the Registrar of Passenger Transportation to forward applications for Special Authorization licences to the Passenger Transportation Board (Board). Section 28(1) of the Act says that the Board may approve the application, if the Board considers that: (a) there is a public need for the service the applicant proposed to provide under any special authorization. (b) the applicant is a fit and proper person to provide that service and is capable of providing that service, and (c) the application, if granted, would promote sound economic conditions in the passenger transportation business in British Columbia. I will consider each of these points in making my decision. Page 2 Limo Decision Passenger Transportation Board
3 IV. Rationale Over the past year of operations, LLL reports it has had countless requests for a stretch SUV to provide transportation for additional members of wedding parties. Most clients like to book through one service provider and LLL has had to farm out to other limousine companies for this vehicle. The applicant also reports multiple inquiries weekly for a vintage Bentley limousine. V. Reasons (a) Is there a public need for the service that the applicant proposes to provide under special authorization? Limousine companies who want more vehicles are expected to prove that there is a public need. Companies are expected to show why its current fleet is not large enough to handle more trips. The Board looks for a reasonable connection between the number and types of vehicles requested and public need. LLL recently purchased a stretch SUV that was going to operate under a General Authorization licence, however it did not meet the weight guidelines and must have a SA licence. The applicant reports that this vehicle was purchased due to the high number of requests from clients to provide this vehicle type for wedding parties. The second proposed vehicle is a vintage Bentley, which the applicant states has also had a high number of requests from past, present and potential clients. LLL works closely with its sister company, AAA Movies, which annually participates in over 100 weddings. The applicant reports that 90% of this wedding clientele request limousine or chauffeur service. The applicant cites the following reasons to support the addition of the 2 requested vehicles. Stretch SUV Currently LLL offers 2 luxury Bentleys for their clients. Eighty five (85) percent of LLL s business is for weddings. Clients that book LLL s Bentley service usually require additional Page 3 Limo Decision Passenger Transportation Board
4 transportation using a stretch SUV for additional wedding party members. LLL must farm out these requests. It has farm in and farm out relationships with 3 limousine companies. There are times when these companies do not have a stretch SUV available. The applicant provided a list of 19 bookings to September 26, 2015 for the stretch SUV. Presently these requests are being farmed out. Letters were included from Boss Limousine, Silver Star Limousine and Elite Limousine confirming the farm in, farm out arrangements Vintage Bentley Since LLL s operations began, it reports that clients have expressed an interest in older luxury vehicles. During the peak wedding season, April to October, there are several weekends where both Bentleys are booked. The vintage Bentley will allow for a 3 rd wedding to be accommodated. The applicant included a list of bookings for the Bentley Flying Spur limousines. From January to September 26 th, 2015 there are 27 booking dates, 8 of which require the 2 vehicles. Also included was a letter of affiliation with Royalty Chauffeurs for farming in and out of luxury vehicles. Ten s were submitted requesting information on vintage Bentley service. The applicant included support letters from 2 banquet facilities, that combined, do 500 events annually. These facilities have a referral arrangement with the applicant. Board Analysis and Findings I find that the applicant has provided evidence that a public need exists for the addition of these 2 specific limousines. The stretch SUV adds a complementary and supplemental transportation option to LLL s core operation of the luxury Bentley service. Often the 2 Bentley Flying Spur sedans are booked leaving LLL unable to accommodate any additional requests. The vintage Bentley will help to serve this additional demand. (b) Is the applicant a fit and proper person to provide that service and is the applicant capable of providing that service? The Board looks at fitness in two parts: (i) is the applicant a fit and proper person to provide the proposed service; and (ii) is the applicant capable of providing that service? Page 4 Limo Decision Passenger Transportation Board
5 Luxury Life Limousines Inc. was incorporated on February 4, It began its SA operation with 2 specialty vehicles in April The company has 2 directors: Vikrambir Jhooty and Jaspir Singh Jhooty. Mr Vikrambir Jhooty is the president and sole shareholder. The application material included a condensed operating plan and a comprehensive updated business plan. Mr. Vikrambir Jhooty is the primary operator of the service and is responsible for sales, scheduling, financial planning, driver training and marketing. Financial information included income and expense statements for 2014 and 2015 to date and a balance sheet to April Income is projected to double for Cash flow projections for the 2 additional limousines were submitted for The monthly projected trip volume for the 2 vehicles seems reasonable. The directors completed the required disclosure of unlawful activity and bankruptcy forms. The applicant seems to have a financially viable operation and has the skills and resources to provide the proposed service with the additional vehicles. The applicant provided information on driver requirements and its policies regarding bookings with minors as well as consumption of liquor in vehicles. They also signed appropriate declarations. I find that the applicant is fit, proper and capable of providing the proposed service. (c) Would the application, if granted, promote sound economic conditions in the passenger transportation business in British Columbia? There are many markets for limousines. Some limousine companies may serve the wedding or special event market. Others may serve corporations. Still others may offer specialty services. A healthy, competitive limousine industry provides the public with a range of service options while enabling efficient operators to run a successful business. The Board discourages competition that could unduly harm existing service providers. LLL is providing a unique limousine service with specialty vehicles. The service is aimed at a niche market for luxury limousine patrons, particularly wedding parties. It is providing a discretionary transportation option. Page 5 Limo Decision Passenger Transportation Board
6 There were no submitters to this application. The 2 additional vehicles will supplement and complement the existing luxury limousine service. It should promote sound economic conditions within the limousine industry in LLL s service area. VI. Rates Application approved hourly and package rates for the 2 Bentley Flying Spur sedans as set out in Appendix II. The rates for the 2 additional vehicles are approved set out in this decision. VII. Conclusion For the reasons above, this application is approved in whole. I establish the activation requirements and the terms and conditions of licence that are attached to this decision as Appendix I. I establish the rates that are attached to this decision as Appendix II. These form an integral part of the decision. Page 6 Limo Decision Passenger Transportation Board
7 Luxury Life Limousine Inc. dba Luxury Life Limousine Appendix I Licence Required to Operate Vehicles The Registrar of Passenger Transportation must issue the applicant a licence before the applicant may implement the amendments approved in this decision. Approval of application may expire Note to staff: Modify if only 1 vehicle approved. 1. The applicant must activate at least 50% of the vehicles within 6 months of the date of this decision. 2. If the applicant does not meet the requirements set out in 1 above, this Special Authorization expires. 3. The Passenger Transportation Board may vary the requirements set out in 1 above, if circumstances warrant it. 4. If an applicant needs more time to activate its vehicles, then the applicant must make a request to the Board before the end of the 6 month activation period. (Note: activate means that the applicant has submitted the documents required to obtain a Special Authorization Vehicle Identifier to the Registrar of Passenger Transportation.) Notice to Registrar Note to staff: Modify if only 1 vehicle approved. Special Authorization The Registrar must not, without direction from the Board, issue the applicant a licence or any Special Authorization Vehicle Identifiers if the applicant has not activated at least 50% of the vehicles within 6 months of the date of this decision. (Note: activated means that the applicant has submitted to the Registrar of Passenger Transportation the documents required to obtain a Special Authorization Vehicle Identifier.) Passenger Directed Vehicle (PDV) Terms & Conditions of Licence Vehicles Maximum Fleet Size: Specialty Vehicles: Vehicle Limitations: Vehicle Capacity 4 vehicles of which: 3 must be sedan limousines (a) Sedan vehicles may only be operated if the vehicles are sedan limousines, including eco-friendly sedan limousines, as defined by Board policies or rules in effect at the time a special authorization vehicle identifier is issued by the Registrar of Passenger Transportation for the vehicle. (b) Classic (antique) sedan: must be more than 30 years old 2 vehicles must be Bentley (make) Flying Spur (model). 1 must be an antique Bentley sedan. Sedan limousines must accommodate a driver and not less than 4 and not Page 7 Limo Decision Passenger Transportation Board
8 (S): Vehicle Capacity (LV): Service 1: Originating Area: Destination Area: Transfer of a licence: Liquor Control & Licensing Act: more than 5 passengers. A driver and not less than 6 and not more than 11 passengers. Transportation of passengers may only originate from any point in Greater Vancouver Regional District or Fraser Valley Regional District. Transportation of passengers may terminate at any point in Greater Vancouver Regional District or Fraser Valley Regional District. This special authorization may not be assigned or transferred except with the approval of the Board pursuant to section 30 of the Passenger Transportation Act. The licensee must at all times operate its passenger directed vehicles in compliance with the Liquor Control & Licensing Act. Page 8 Limo Decision Passenger Transportation Board
9 Luxury Life Limousine Inc. dba Luxury Life Limousine Appendix II Rates: A. Bentley Flying Spurs The Board approves the following rates. Hourly Rates* (charter) Rate $ For first hour or fraction one car For first hour or fraction two cars * Taxes are not included 1 hour minimum charge for any use of a vehicle for less than 1 hour. Package Rates Rate $ One car 3 hour package One car 6 hour package One car 12 hour package One car weekend package Two cars 3 hour package Two cars 6 hour package Two cars 12 hour package Two cars weekend package B. SUV Limousines and Antique Sedan Limousines Rates and Rules for Limousines for Victoria, Vancouver & surrounding areas effective November 25, 2014, applies to these vehicles. General: Other rates and rules may be set out in the rates document received from the applicant. Page 9 Limo Decision Passenger Transportation Board
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