Canadian North sale won’t affect service in Nunavut: David Akeeagok
Exchange Income Corp. announces tentative agreement to purchase airline from Inuit organizations for $205 million
The CEO of Exchange Income Corp., the corporation buying Canadian North, says no changes in service or prices will come as a result of the purchase. (File photo)
The Nunavut government has been assured that airline service for Nunavummiut will not be affected after Canadian North was tentatively sold to a Winnipeg firm for $205 million.
“We look forward to engaging with Exchange Income Corp. and Canadian North throughout this transition to ensure air services remain reliable, accessible and sustainable,” David Akeeagok, the minister of Economic Development and Transportation, said in the legislative assembly Tuesday.
Exchange Income Corp. is a Winnipeg firm that already owns Calm Air and Keewatin Air, both operating in Nunavut. It announced a deal Monday to buy Bradley Air Services Ltd., which operates as Canadian North, for $205 million from Makivvik and Inuvialuit Regional Corp., the two Inuit organizations that own the airline.
The acquisition does not include the route between Kuujjuaq and Montreal. Makivvik will maintain ownership of that route and flights will be transitioned to Air Inuit, Makivvik’s other airline, starting Oct. 1.
The sale is yet to be finalized and requires approvals and other “closing conditions” which are expected to occur later this year, Exchange Income Corp.’s news release said.
None of the Nunavut Inuit associations had the opportunity to consider acquiring Canadian North, Akeeagok said in response to a question by Iqaluit-Sinaa MLA Janet Brewster at the Legislative Assembly.
Brewster expressed concerns about a southern-based company monopolizing the airline industry serving Nunavut.
“We have a very small air market and population in Nunavut, and that’s the reality,” Akeeagok said.
Shelly De Caria, Canadian North’s president and CEO, declined to comment for this story.
Isn’t that what they said after the merger?
“Brewster expressed concerns about a southern-based company monopolizing the airline industry serving Nunavut.”
But isn’t that what an “Inuit” company did? aka makivik?
I remember when “none of it” first happened. Hilarious.🤣🤣🤣🤣
First. The shot callers wannabes attempted to create “Nunavut time zone”.(We have None of it. We can control time 🤣)
Then…(drum roll please) an “Inuit” airline came to be and attempted to deliver mail every day by daily flights across Nunavut.🤣🤣🤣😜😜😜
Then…a snow mobile created for Nunavut?
One can’t make this stuff up.
Maybe Nunavut can buy the NHL Stanley Cup.
Nunavut buying NHL Hockey team? I am all for that; It has to be Canadiens, not that crapy crapola TMLs. So called skaters eh!!!
Will this affect retired Canadian North employees and other employee benefits.
Retired employee here, I have no inside information and have not been in touch with the Canadian North employee travel department however I suspect that there will be no immediate changes to travel for retired employees.
EIC generally operates each of it’s airline members as individual corporate entities. I can see down the road merging Calm Air into Canadian North but that should only be a positive.
Employee travel is a huge item for current and retired employees and I don’t think that EIC will do anything that removes this employee benefit. If anything having increased efficiency and staff may lead to more ZED fare agreements for Canadian North and probably by extension Calm Air employees.
Personally I’m hoping for Philippine Airlines, Thai Airways, Singapore Airlines, Korean Air, Japan Air, American Airlines, Delta Airways.
So will we see lower prices now.
At what point in history has an absolute monopoly ever resulted in lower prices and better services fir consumers?
I did not realized there was that much hate out there of Nunavut and it PPL. Wow.
Try living therein Nunavut as an outsider. The hate is not from anyone but the residents of Nunavut .
I worked in the ER and I promise the hate that came through the doors was NOT from outsiders
Does David Akeeagok, the minister of Economic Development and Transportation realize that in Canada the airlines fall under Federal jurisdiction? There is a big difference between being a spectator in the stands and being a player on the field. Politicians are renown for making promises that they cannot keep, and for taking on commitments that they later fail at. The leash is on the politicians not the airlines.
Informed decisions can only be made by informed people, and many politicians fail to realize, not only are they not sitting at the table, they haven’t even been dealt any cards, so they are not even in the game.
I wonder how forthcoming the politicians will be when it becomes clear that there have been detrimental aspects of the EIC acquisition? Will they so freely admit that they failed to live up to their promises.
Is it any wonder that google translate converts GN press releases to “blah, blah, blah, blah, blah”. Politicians are unwise to think that they can ever outsmart the populace.
Of course it wont effect services (it already is terribly expensive to fly, and cargo is slow)… what you think this new owner will make it better… couldnt get much worse.
And yes I know it can get worse.
All of it is ultimately owned by Blackrock.
Canadian North is an American company, now.
So no more illaak fare
For now David, yes the new owners are bound by the medical travel contract. This contract also stipulates how often and what routes Canadian North will fly, including medical travel rates and how many budget seats will be available for general public. When that contract is up for renewal, you can be sure that when someone controls both airlines, there will be zero competition and the GN will need to contract at whatever Exchange Income Corporation requires. Air Canada, West Jet, Porter and the others cannot be bothered with Nunavut so expect major increases soon!
You are welcome to buy as many shares of EIC as you like. If you buy enough you can actually gain control of the company.
I have owned shares of EIC in the past, and may well decide to purchase more in the future.
And yes I know that Blackrock and other investment firms own probably millions of shares, but even 1 share entitles you to attend their AGM and if you can convince enough other shareholders you can make changes.
The article indicates;
“None of the Nunavut Inuit associations had the opportunity to consider acquiring Canadian North, Akeeagok said in response to a question by Iqaluit-Sinaa MLA Janet Brewster at the Legislative Assembly.”
That may be true in this instance. I know for a fact that the three Nunavut regional corporations have been given opportunities in the past to take up equity positions in First Air. I suspect that the same is true when it came to Nunasi’s sale of their portion of Canadian North, and later the First Air/Canadian North merger.
The regional corporations and the GN never stepped up to the table. Even a minority position would have meant a seat at the decision making table. Lost opportunity.