A Winnipeg firm that owns several northern airlines has announced it plans to buy Canadian North, the airline that serves the Arctic.
Exchange Income Corp. said it made a deal to buy Bradley Air Services Ltd., which operates as Canadian North, for $205 million from the two Inuit organizations that own the airline. It announced the plan in a news release issued Monday afternoon.
Nunavik-based Makivvik, one of Canadian North’s two co-owners, announced in its own news release that it is selling its share of the airline. Inuvialuit Regional Corp., which co-owns the airline, announced in a social media post it was doing the same.
“Having a strong parent company with roots in northern aviation is critical to our success,” said Shelly De Caria, Canadian North’s CEO, who is quoted in the Exchange Income Corp. release.
Exchange Income Corp. also owns Calm Air and Keewatin Air, which both operate in Nunavut.
“Combining our aviation resources, knowledge, and assets with the team at Canadian North, will lead to increased efficiency and enhanced service levels in the region,” said Mike Pyle, Exchange Income Corp.’s CEO, in his company’s release.
Not included in the acquisition is the route between Kuujjuaq and Montreal, with Makivvik maintaining ownership of that route.
Makivvik said it plans to transition those flights to Air Inuit, its other airline, starting Oct. 1.
“Air Inuit’s recent introduction of modern jets will ensure a high standard of service is maintained, and the Inuit of Nunavik will continue to have a voice in the airline services that support their region,” a Makivvik news release said.
The purchase is not final. Both Makivvik and Exchange Income Corp. said the closing of the sale requires regulatory approvals and other “closing conditions,” which are expected to occur later this year.
Bradley Air Ltd. has been under the ownership of Makivvik since 1990, when it operated as First Air.
In 2019, Canadian North and First Air merged.
