Exchange Income Corporation (EIC), a Winnipeg-based company, has announced its acquisition of Canadian North for $205 million pending regulatory approval. This move is expected to enhance aviation services to northern communities, with EIC already owning various aviation companies operating in remote regions, such as Calm Air, Perimeter Aviation, Keewatin Air, and Custom Helicopters.
Mike Pyle, CEO of EIC, stated that the integration of Canadian North with their existing northern air operators would lead to improved efficiency and service levels in the region. Canadian North, which caters to 24 communities in the N.W.T. and Nunavut with passenger and cargo services, as well as charter services for the resource industry, is currently owned by the Makivvik Corporation and the Inuvialuit Development Corporation, operating out of Edmonton and Ottawa.
The acquisition, once approved by the Competition Bureau and Transport Canada, is anticipated to be finalized later this year. Carmele Peter, EIC President, highlighted the strategic fit between Calm Air and Canadian North, emphasizing the potential for holistic service provision across the entire region.
Furthermore, EIC’s ownership of two pilot schools could aid in addressing the ongoing pilot shortage in Canada by supporting recruitment at Canadian North. While the impact on fares and schedules remains uncertain, Peter assured that it would be “business as usual” for the airline in the interim.
Aviation management expert John Gradek from McGill University expressed positivity towards the sale, emphasizing the financial stability it brings to Canadian North. However, he noted the potential changes ahead for the airline under EIC’s ownership, as the company aims for profitability and operational enhancements.
Transportation Minister David Akeeagok reassured Nunavummiut that the sale would not affect air services, emphasizing the government’s commitment to ensuring reliability, accessibility, and sustainability throughout the transition.
