A Winnipeg-based company that owns several aviation companies in Canada’s North has agreed to buy Canadian North for $205 million.
The acquisition of Canadian North by Exchange Income Corp. is an opportunity to operate complementary routes to those already serviced by EIC, officials said.
“Canadian North provides passenger and cargo services in the eastern and western regions in Nunavut, while EIC’s subsidiary Calm Air services the central region. Canadian North is also active in the Northwest Territories, where EIC has no passenger or cargo presence,” EIC said in a statement.
In addition to Calm Air, EIC subsidiaries include Keewatin Air, Carson Air and Perimeter Aviation.
Canadian North provides pax and cargo service to 24 remote Canadian Arctic communities in Nunavut and the Northwest Territories through Ottawa and Edmonton, as well as dedicated charters in northern Alberta and B.C.
Global News reports Canadian North has been grappling with challenges including a pilot shortage and a lack of government funding. Infrastructure, such as short, unpaved runways, also limits the airline’s operations.
Canadian North merged with First Air in 2019. However, since the merger, Canadian North has flown fewer scheduled flights than the two airlines did collectively before 2019.
“Air travel in this region is truly an essential service,” EIC stated. “There is no road access to Nunavut from the rest of Canada and the introduction of roads will be highly unlikely in the foreseeable future.
“EIC has the core expertise in Northern aviation and we have always been incredibly proud of the services we provide to our community partners.”
“Demand in the North is steady based on the essential nature of the service,” said Adam Terwin, CCDO at EIC. “Prospects for growth are high as there are a multitude of factors, such as Arctic sovereignty and resource development, that will drive considerable economic opportunities in the Far North over the next few decades to expand and enhance services to the region.”