Canadian North tentatively sold to Winnipeg firm for $205 million
Exchange Income Corp. announces agreement to purchase airline from Inuit organizations
A Canadian North jet sits parked in Ottawa. Winnipeg-based Exchange Income Corp. announced Monday it is entering an agreement to buy the northern airline. (File photo by Jeff Pelletier)
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.
Why would anyone want the main airline in the North to be owned by some corporate ghouls instead of by Inuit?
Makivik only seems to care about their profits and bonuses. Canadian North and its employees have long been abandoned by them and the customers end up paying for it.
Johnny Appwlseed your predictionis correct. This is the start of Makkivik fall. Bonuses make big $$$ for those who current bosses, dam the future.
I guess the “last” bonus’s for the Inuit leadership running this ship, will come from the loose 5 million of the 205 million.
Some reasons to change ownership: improved efficiency, better service, more service, improved safety, better employee compensation and benefits, improved employee satisfaction, more jobs, upgraded equipment and properties.
Kinaliguu?
Very smart S. Being part of a large company has many benefits and there is the good, the bad, the ugly in any decision. besides Money talks too.
And increased fares and cargo rates.
Maybe they’re in need of a fresh start. Maybe it wasn’t as profitable as they were hoping. No doubt running an airline to these tiny communities is tough business.
I personally don’t really care who owns the Airline for the North as long as they provide more affordable airfares. Right now, the ticketing system between Iqaluit and Kimmirut can be classified as “Robbery”. The 30 minute flight ticket cost can be as high as $1,389 – one way under so called Super Flex….return ticket almost just under $3,000.00
Kimmirut is serviced by twin otter only, small plane. We have been complaining about the high costs but they say it is up to the Airline and we were hoping that when the merger occurred that our Government would have some watchdog but they don’t have any power to change things.
Inuit D-I-D try running an airline. It was a joke, embarrassment and utterly unreliable. Thank God it failed.
It’s really too bad our GN, NTI and RIAs did not come together and buy this airline for Nunavut, it is a very important part of our infrastructure that has a huge impact on our lives up here.
Huge monopoly with this southern company owning so many airlines, makes me nervous how this will effect our service and cost to fly up here.
What about the Iqaluit-Montreal route which goes through Kuujjuaq? A few months ago there were two airlines flying from Iqaluit to the Montreal area and by the sounds of this, in a few months there will have none.
Yet still no sign of promised Indigenous-designed Canadian North uniforms?
When was that announced? I don’t remember hearing about that but I might’ve missed it.
It was first announced two years ago:
https://canadiannorth.com/latest_news/call-for-inuit-and-indigenous-cultural-designs/
Thankfully Nunatsiaq covered this failure. Now 2 years later and nothing but tumbleweed.
https://nunatsiaq.com/stories/article/canadian-north-wants-look-reflecting-its-inuit-roots/
https://nunatsiaq.com/stories/article/no-sign-yet-of-promised-indigenous-designed-canadian-north-uniforms/
Okay — thanks! I looked at the date and I was on vacation it was announced so I missed it.
It has been abundantly clear for some time now that the operating model and management philosophy of Canadian North was just not sustainable. The exact same ineptitude, incompetence, and negligence that doomed First Air was unfortunately carried forward into the merger with Canadian North.
The constant revolving door of employees indicates a toxic workplace and inept management who are unprepared and ill-equipped to operate an airline.
Perhaps the acquisition by EIC will be the impetus for less arrogance by management, and a more humane approach to both employees and customers.
It is truly sad that the enormous potential of both First Air and Canadian North was squandered by managers who did not realize how little they knew. The Canadian aviation industry is full of people who will tell you that quitting Canadian North was the best decision they ever made.
You comment on every one of these airline articles. We get it you hate the company. I hope you are happy where you are now. You are mistaken about First Air they had the stronger management that led it to the “takeover” oh I mean merger.
EIC does not merger companies it acquires them. Hopefully they will inject some capital and make things better for all
Stronger management? How? They couldn’t even source the all the theft in Yellowknife Cargo for years….with cameras everywhere, you still couldn’t catch the same guys stealing goods, like Tv’s, Merchandise, Food, let alone the stories of booze missing and never making it to customers. First Air couldn’t find them thieves?
How was that managed?
First Air destroyed Canadian North (legacy company of Canadian Airlines International) when they bought it. I have never seen such a toxic organization to work for as First Air. I quit shortly after the merger as I could not stand working for them. I’m not surprised they are not sustainable as their staffing is a revolving door.
GREAT! Now we have only one sked airline across the north. How can the government allow this kind of monopoly. Remote travel in northern Canada is already about ten times higher than other parts of the world, can’t wait to see what this reduction in competition will do to our already obscene high prices!
That because it’s “10 times” more expensive to operate an airline in this part of the world, and when you understand operating challenges and costs, only then will you be qualified to comment intelligently.
Operating cost-effective aircraft over long distances, long range alternates, long flight times, long crew duty times, no maintenance at remote stations, expensive fuel, employees that don’t show up for work, irritable and entitled passengers with no tolerance or understanding of the difficulties airlines face here, and fixed operational expenses that cannot be compromised, few passengers to support these long trips, fickle weather variability and undependability, delays beyond the control of the operator (waiting for incoming connections, and other trivial delays simply to accommodate late/medical passengers)
You don’t have any of these problems down south where huge markets support competitive operators, and flights operate near 100% capacity regularly.
Imagine if Canadian North became a full member of the Star Alliance? That would be quite the benefit for Northern travellers. I don’t know what the capitalization or technological requirements are, though. There do seem to be a number of smaller airlines that are part of the alliance.
What about the warm cookie they serve us on Canadian North? I hope Air Inuit will deliver… Pretty darn good.
The thing I miss the most are the warm hand/face towels. Make the good old time come back.
Might be billions of dollars worth after all this inflation.
Who owns Exchange Income Corp? Blackrock, they have a networth of 147 Billion, why is an Inuit owned company selling our Airline to the greediest people in the world?
EIC is not owned by Blackrock. It is a Canadian-listed publicly-traded corporation owned by its shareholders. You could be one of them! It trades on the Toronto Stock Exchange.
One of the majority share of owners EIC is a canadian company called blackrock asset management canada ltd. which-in turn is owned by the US company Blackrock. So Blackrock which is one of the biggest investment groups if not the biggest now has a major say your very own Canadian North. So Mr Fink wd had known this exchange would have been happening
I wonder if Northmart will get better shipping deals with a fellow Winnipeg-gion distributor. Lower prices on the shelves? NOT!
No way a company would make it cheaper for a retail store to ship goods, it’s a big monopoly game money money money.
I guess the original idea to have 3 Inuit regions as owners fell through when NU dint want in. Now Makivvik had to cut its losses. Partial buy in from all parties doomed the idea of Inuit owning the northern skies. Kudos.
I’m really hoping to see the Piuvut fare available all over Nunavut! It’s such a beneficial program, allowing travelers to choose their preferred travel date and even extend the discount to a spouse who is not a beneficiary. Plus, the three-piece luggage allowance is a huge bonus.
Calm Air has always been fair with their travel costs in the Kivalliq region, and it would be great to see that same affordability extended across the rest of Nunavut.
The sale of Canadian North is problematic on many levels but…. As we are about to enter into an economic war with the United States and with Trump casting his eye to the Arctic to acquire what he can is it really wise/prudent/sane to sell an Arctic enterprise to an American multinational investment management corporation???
Are you all going to get a wake-up call, when you find out what it’s like to deal with Calmair , it’s owned by EIC and 50 lawyers, there business mode is buy up all the competition, and stick it to you, happy flying
PenderFund Capital Management Ltd out of Vancouver is largest shareholder of EIF at 22%
Cost of flying round trip Kugluktuk to Edmonton is $3800 without a beneficiary rate CANT wait to see what the price is going to be going forward.
I wonder how that will affect the schedule. I bet we will get less flights in the Kitikmeot again. I wish Nunavut can be reduced to say, 15-20 communities. Relocate the 5-10 smallest ones to nearest regional centre. Our small population is spread across the country. It’ll be better for business, Healthcare, education. Idk. Maybe idfk what I’m saying…
Time to start a brand new central centre @ GREYS BAY , Brand new highway soon to the rest of CANADA !
Why not.
Only 205 million, all those jets and atr,s, maybe aircraft old now.
just from Iqaluit to Resolute for 1 person is between $3,827.74 to $4,174.41 like wtf TOO MUCH!!!!!! could travel around the world with that amount
Yes, I agree about poor management. Hiring the CEO was a really big mistake. Due to this, this huge downfall. It’s actually sad.
Good luck EIC, it looks like you will end up owning all 3 of my former employers, Calm Air, NWT Air, and First Air.
More ZED agreements please, I’ve got more traveling to do, Philippine Airlines, Thai Airways, Japan Airline, Singapore Airlines, Korean Air would be nice! Thank you and all the best going forward.
EIC is a very is Manitoba owned investment company hopely Kivalliq. It acquired all the airlines that flew in Kivalliq.
First Air was always weighed down managers who were not only unqualified, they feared anyone who worked harder, or who was smarter than them. I have heard from quite a few people who were told “If you do not like how we do things here, then go work somewhere else”, just because they suggested a more modern, or a more efficient way of do things. The First Air arrogance, incompetence, and negligence has driven the best and brightest to work someone else, and those that remain sank the ship.
Not sure when you worked for First Air. I started under John Jamieson’s ownership, through the Makivvik purchase, Kamal Hanna, Bob Davis, Scott Bateman, and then Chris Ferris as interim president.
To my knowledge there was nothing like you describe in management at that time. People like Bob Davis, Scott Bateman, and Chris Ferris really cared about the people that worked for the company, the customers, and the service provided Their doors were always open to any employee.
Almost all of the managers I knew really cared about providing a high standard of service to their customers, and cared about the welfare of their employees. Not to say that there wasn’t conflict between managers and some employees – that is inevitable in any large organization.
Maybe that corporate culture changed after I left. I know that Makivvik brought in outside people for the top position after my time, instead of promoting from within, and that can be a mistake.
Hopefully you are happier where you are now. Life is too short to carry such a heavy grudge.
Yeah not sure what 7F you worked for but my suggestion was taken very seriously and some what implemented in my region and it did work very well for the time it was done. Not all managers were closed minded and many of the upper management accepted new ideas when it was feasible.
I mean, does the makivik executives look down on the lower income families ? What would benefit nunavik from this sale ?
I know they have pretty nice salaries, go on nice vacations but rarely have we seen unemployment go down or poverty rates going down, or trauma being passed down generation go generation, i know it start with me by saying im hurt and i need help but come on, there are no programs available.
If only, if we only had more people to try and run for leadership.
Usually not the one to be an online typing warrior but there needs to be an audit of whos doing what or saying what. Id reveal alot of information of whats being done or not being done 🙂
Some people have been on too long.
2 cents
Indeed. People living in Nunavik (Inuit and non Inuit) stuck with Air Inuit after this deal – and their stupid reward program with whuch maybe after flying 50 times you might get a one way from YVP to XGR. And, no, flight cost will never change here cause the majority of the flyers are flying on the budget of employers and this amount is insane. Today I saw the receivavle account for 6 days of travelling on Canadian in Jan 2025 from an organization I won’t name. 122 000$ for 6 days of employee flying ( this is one org one week one airline). Like. They know organization and work are paying, they are the big client so why lowering cost of flying for a fraction of users leisurely travelling- ya right. At the same time maybe people will start to come up here if a flight YUL-YVP was not 3000% right and break the isolation and give opportunities. Chicken or eggs first. But nonetheless – the amount, the money directed to airlines with business travel cost from organisations in Nunavik (which should all be auditted and under tutelle in my opinion) is pure extravagence. Especially considering the newest policy of hybrid work positions requiring now travelling north every 2 weeks instead of being based here – agaain Nunavik being handled from south puppettering. Ridiculous
The most important issue for Nunavut consumers in this purchase is whether the new owners will honour the conditions which were put in place by Transport Canada when First Air and Canadian North merged. Those conditions established clear consumer protections against unreasonable fare and cargo rate increases and provided guarantees of minimal services for smaller communities. Those conditions must be honoured by the new purchasers. Canadian North managed to persuade previous (mercifully) short term Transport Minister Omar Alghabra to waive virtually all those conditions., giving them unrestrained ability to increase fares and cargo rates up to 25% each year – which they have exploited to the detriment of both passengers and cargo customers with no attempts to reduce their top heavy southern based bureaucracy. The new owner should promise to honour those conditions, which were developed on the advice of the federal Competition Bureau to protect consumers from an all powerful monopoly service provider. Calm Air runs a much leaner more efficient operation with more respect for its customers in my opinion. Things can only get better. Inuvialuk and Makivik beneficiaries should also rest easier, not having their land claims settlement proceeds tied up in what can be a risky business. Nunasi was wise to sell their shares in Norterra/Canadian North years ago because of those risks.
Quote:
In 2019/20, the GN completed an RFP process for the territories requirements for Scheduled Medical Travel and Duty Travel. The process resulted in an award of two (2) contracts:
1. Calm Air for $50,000,000.00
2. Canadian North for $200,000,000.00
EIC owns both airlines – in addition to Keewatin Air, Nunavut’s main air ambulance.
Source:
https://www.gov.nu.ca/sites/default/files/documents/2024-02/PAR%20Report%202021-22%20EN.pdf
Why ruin what the uniform is now?
More special treatment and hand outs? Good Grief!!! Please stop it.
An Inuk elder told me…”You want something? Work for it. (Gasp!! Did I just say work?!! OMG!) 😱😱😱
The world market is getting a big reboot, so sell will you can make a profit.
Get some185s and caravans for chartering too in every community
Personally, I don’t want the government operating ANY business. It will ultimately cost the taxpayer (you) more.
Hopefully this buyout will help improve Canadian North’s buying power, the ATR’s are definitely in need of an upgrade, some 72’s would be super beneficial to the Kitikmeot region for sure especially if they are combo’s like Summit Air or some of Calm Air’s.
Sadly they can’t faze out all the older ATR’s as they are viable for certain communities that can’t have anything bigger then the ATR42-300’s land there due to the runway. But hey some newer 42 and 72’s would be great.
OK , trolls and keyboard warriors, I have been dealing with calmair. For 20 years, personal and business, their business mandate is take it or leave it, now there is no other options, and are you all in for a big wake-up, yes the corporate clowns they live in Winnipeg will all say the usual corporate trash better service, better rates, more flts. And I want all you professors to go back and look at these posts, and you will learn what EIC is a monopoly, like Northern Wpg based co Arctic coop Wpg based co. And who is going to haul all the cargo, guess, prices are all going up and who do you think is going to pay. For that 205 million purchase, look in the mirror, sorry
It’s too bad one of the Inuit companies is not buying Canadian North. It would make sense for the monopoly airline to be locally owned and not be receiving pressure by shareholders to constantly bring in profits. Profits, yes, but not at the cost of services offered yo people who have no other option for transportation.