Politicians with Winnipeg's executive policy committee have voted to approve a new shuttle service to carry passengers from the airport to downtown hotels — a service protested by taxi companies and drivers in what some have dubbed the "shuttle shuffle."

Wednesday's decision by Mayor Sam Katz's inner cabinet moves Avion Services one step closer to making its proposed airport shuttle a reality. If the whole council endorses the committee's approval, the company can then take the proposal to the Public Utilities Board.

Dozens of taxi drivers sat in the council chambers and watched as lawyers for Avion and the taxi industry made their cases for and against the proposal on Wednesday morning, the third time they've squared off in recent weeks.

The drivers from Unicity Taxi, Duffy's Taxi and other taxi and limousine companies are worried Avion's shuttles could rob them of business.

Avion, which is responsible for security, parking and some retail services at the Winnipeg airport, wants to expand its offerings to include three vans that would shuttle travellers between the airport and several downtown hotels.

Katz said he wanted a decision Wednesday in order to end the ongoing dispute.

"I'm disappointed that it wasn't resolved last week at the [public works standing] committee," Katz said Tuesday of the Jan. 9 meeting, where 60 taxi drivers packed council chambers to protest Avion's proposal.

The executive policy committee had pushed the matter to the public works committee in November.

"I think I've told you what I think about procrastination — it's suicide on the instalment plan. I will not be part of that," Katz said.

Company wants to meet need, lawyer says

Lawyer Paul Edwards, who is representing Avion, argued Wednesday that the company simply wants to meet a need for service in a free market.

At the Jan. 9 meeting, the Manitoba Hotel Association expressed its support for Avion's proposal, saying the industry has identified a need for an airport shuttle service.

But Barry Gorlick, a lawyer representing Unicity Taxi drivers, said Avion's proposal is bypassing proper process.

The shuttle service should be put out to tender so cab companies could compete for it, Gorlick argued.

Despite Wednesday's decision, Gorlick said his clients will not give up. They may still appeal to Avion directly to drop the proposal, arguing a shuttle service in Winnipeg would not be viable.

"Even Avion said that if the shuttle service doesn't prove to be viable that they'd consider shutting it down," Gorlick said Wednesday.

"Well, maybe we can show that based on our most recent experience in this city — I speak of the Pan Am Games, the wildly successful Grey Cup — that our existing transportation services meet the needs of Winnipeggers and travellers out of town alike."

Furthermore, Gorlick said, Avion may end up violating a previous contract that gives Unicity Taxi exclusive rights to pick up passengers at the airport.

When that contract expires in the next few months, cab companies will get the chance to discuss the proposed shuttle service with Avion and the Winnipeg Airports Authority, he added.

Public Utilities Board awaits application

Given the concerns raised by the taxi industry, the committee recommended the utilities board hold public hearings on Avion's proposal.

But Gerry Gaudreau, executive director of the Public Utilities Board, said Wednesday that it's still too early to know if it will hold public hearings.

"I'm assuming we'll be receiving an application from Avion and some sort of referral from the City of Winnipeg," he said.

"Presumably, we'll get a copy of that agreement and be asked to adjudicate on that."