It’s official: Canadian North sale to Winnipeg firm approved
Competition Bureau of Canada will monitor situation as Exchange Income Corp. takes over airline
An aviation industry expert says the Competition Bureau of Canada will monitor the situation after Exchange Income Corp. received regulatory approval to purchase Canadian North. (File photo by Jeff Pelletier)
An airline industry expert says the purchase of Canadian North by a Winnipeg-based firm will be good for commercial aviation in the Arctic.
Exchange Income Corp. said in a news release Wednesday it has closed its purchase of Bradley Air Services, which operates as Canadian North, buying the airline for $205 million.
“I think it’s good, because you have two very strong carriers,” John Gradek, a McGill University professor specializing in aviation management, said Wednesday.
“I think from a financial perspective it’s a good deal for both [companies] and it’s a good deal for Canadians.”
Gradek said the sale fits well with the federal government’s push to speed approvals for major projects that are in the public interest.
“There is going to be a need for building the robustness of the air services in the North. I think [Exchange Income Corp.] will see that as an opportunity to consolidate air services and potentially look at profitability through consolidation.”
Exchange Income Corp. CEO Mike Pyle said Thursday his company is “bullish” on the North.
“The investment in the North for a number of things is going to be great for the business,” he said, noting the increasing demand for critical minerals could increase demand for northern air travel.
“Whether it be the government’s commitment to investing in military in the North and building bases, all of those will increase travel as people come into the North.”
In acquiring Canadian North, Exchange Income Corp. gains a northern airline that operates in regions adjacent to its own and on complementary routes.
Canadian North offers passenger and cargo service to 24 communities in Nunavut and the Northwest Territories, flying north from its southern hubs of Edmonton and Ottawa.
“We weren’t in direct competition between our airlines and Canadian North, we’re in different geographies,” Pyle said.
Exchange Income Corp. already owns several smaller airlines including Calm Air that serves northern Manitoba and parts of the Kivalliq region, Keewatin Air that provides medevac and charter service, and smaller regional carriers in British Columbia and Ontario.
Its purchase means Canadian North will benefit from increased resources which will enable the company to invest in Canadian North “to make it an even better carrier for the residents of Nunavut and the Northwest Territories.”
Pyle said the purchase will improve service, not reduce it as some people might fear.
In February, Exchange Income Corp. announced it was purchasing Canadian North from co-owners Nunavik-based Makivvik Corp., and Inuvialuit Regional Corp. in Inuvik.
The purchase required regulatory approval from the Competition Bureau of Canada and Transport Canada.
Those requirements have been finalized, Canadian North said in a statement posted on its website announcing its sale Wednesday.
“I think the competition bureau is satisfied, from what I understand, about the overlap of services between the carriers,” Gradek said.
“Everything that was flown by Calm Air will continue to be flown by Calm Air and everything that was flown by Canadian North will continue to be operated by Canadian North.
The competition bureau will continue to monitor Exchange Income Corp.’s actions as it merges Canadian North into its portfolio, Gradek said.
Gradek predicted there will be questions asked if flight schedules change, something the competition bureau might push back against.
He noted “fleet rationalization,” such as possible reductions in service, changing routes or potential layoffs, are issues that could arise in the future.
A Makkivik Corp. representative was not available this week to discuss the sale of Canadian North.
“Exchange Income Corp. CEO Mike Pyle said Thursday his company is “bullish” on the North.”
Canadian North sure has been ‘bullish’ already…. though i might move the ‘ish’ over rearrange the letters and add a ‘t’ to the end.
I hope this makes it better. Might have to work hard to make it worse.
This is the land of corporate monopolies! Forget about competition or fair prices.
Well. They already made changes in the route offering between Iqaluit and Kuujjuaq – while they claim not to change anything yet. And Air Inuit is now jacking up the fare between Montreal and Kuujjuaq – monopolies indeed.
Well of course there would be changes in routes especially ones that Makkivik Corporation fly with Air Inuit already. Only makes common sense to give those routes back to Air Inuit.
Give them back to the Inuit?
I guess the inuit were flying those routes before the evil colonizers showed up 400 hundred years ago.
Canadian North service has been absolutely horrible with price gouging and flight cancellations and abuse in the last few years. Nothing in this article addresses these major issues. Any commitments for the GN and the new owners to better insure essential transport services in Nunavut?
This will do nothing to improve service or reduce costs but hey that is already a really really low bar in any event.