Latest news with #CarmelePeter
Hamilton Spectator
a day ago
- Business
- Hamilton Spectator
GN ready to ‘share' risks, benefits of owning Canadian North: Community services minister
The Government of Nunavut could become part-owner of the territory's biggest airline under a new 10-year agreement it has entered with the owner of Canadian North. 'Our airline is our only road system,' said David Akeeagok, the territory's community services minister. 'What better thing to have than an equity stake, because we rely solely on it.' The agreement with Bradley Air Services — a subsidiary of Exchange Income Corp. — was announced July 16. Exchange Income Corp. owns Calm Air, Keewatin Air and Canadian North. The parties started negotiating the contract in February after the $205-million acquisition of the airline by the Winnipeg-based company was announced. The new agreement replaces existing separate agreements the territorial government had with Calm Air and Canadian North. It covers duty travel, medical travel and cargo services that the airlines provide to the government, Carmele Peter, president of Exchange Income Corp., said in a phone interview Thursday. The agreement also tasks the corporation with reporting to the territorial government on the quality of service the airline provides with an aim to prompt 'greater focus on time performance,' a reduction of 'service interruption' and an improvement in the quality of Canadian North's overall services for both for GN and non-GN travellers, Peter said. 'The travel agreement includes clear performance expectations for service delivery, reliability and freight,' said Casey Lessard, communications director for the Department of Executive and Intergovernmental Affairs. 'If service quality declines, the GN can escalate concerns directly to [Exchange Income Corp.] leadership. The GN also retains influence through the scale of our contracted travel.' The agreement gives the Nunavut government the opportunity to buy equity in Bradley Air Services (operating as Canadian North) as well. If that were to happen, the GN would become the airline's minority owner. The GN has a year to decide this issue. If territorial leaders were to say yes, the move would require policy framework, legislation and a go-ahead from the legislative assembly, along with approval by Exchange Income Corp.'s financial management board, Akeeagok said. The exact amount of equity is still in discussion. A final decision on whether to buy into the airline would not happen in the life of the sixth legislative assembly, seeing as the territorial election will be held Oct. 27, Akeeagok said. Neither Akeeagok nor Exchange Income Corp. said whether Canadian North is a profitable company. In 2023, Pita Aatami, president of Makivvik Corp., the previous owner of the airline, said it was ' losing millions .' The Nunavut government understands the air industry 'hasn't necessarily been a profitable place to be,' Akeeagok said. 'It's something that as a government, I think if we have equity, then we can share those risks and ensure that our road system is intact,' he said. Error! Sorry, there was an error processing your request. There was a problem with the recaptcha. Please try again. You may unsubscribe at any time. By signing up, you agree to our terms of use and privacy policy . This site is protected by reCAPTCHA and the Google privacy policy and terms of service apply. Want more of the latest from us? Sign up for more at our newsletter page .
CBC
03-07-2025
- Business
- CBC
New owner of Canadian North says no immediate changes planned for routes or prices
Social Sharing The new owner of Canadian North says there are no immediate plans to change the routes, frequency or prices of flights. Carmele Peter is president of Winnipeg-based Exchange Income Corporation (EIC), which officially took over Canadian North last month after the transaction was approved by the federal government. Peter said the company will meet with local communities and stakeholders to discuss how to improve the airline. She said there also may be a change to prices at some point, though not right away. "Ultimately, you know, we've had significant increases in, I'll call it aviation inflation. [We'll] see where those flight costs are in relation to pricing and, where there is an economic need, we'll address that," she said. "But we're not looking to do anything immediately — we'll make sure we do our homework." News of the sale was first reported in February, but the sale required approval from the federal Competition Bureau and Transport Canada. Geneviève Chassé, a spokesperson for the Competition Bureau, confirmed in an email that her organization had reviewed the transaction and decided not to challenge it. Chassé said she couldn't provide any details on the decision due to confidentiality. Peter said the bureau looked at whether the acquisition would lessen the number of choices northerners would having when flying, but ultimately determined it wouldn't. EIC owns several aviation companies that operate in northern and remote regions, including Calm Air, Perimeter Aviation, Keewatin Air and Custom Helicopters. Peter said Calm Air currently serves the Kivalliq region in Nunavut, while Canadian North offers similar service to the east and west of that region. "So there was no overlap that existed. So there wasn't going to be a lessening of competition," Peter said. "What you have here is effectively a change of owners, not one less airline." Peter said this situation is different from one that occurred in 2019, when "old Canadian North" and First Air merged. That merger effectively created a monopoly on air travel in Nunavut and the Competition Bureau had flagged several concerns about it. "That obviously was a material difference in that transaction compared to ours," Peter said. "[Here, there's] no elimination of competition, which is I think obviously why the Competition Bureau got comfortable." Competition in the North has been highlighted as a major issue by the Competition Bureau, which recently released a report and recommendations for the federal government. One of them was to encourage more competition in the region, which could lead to lower prices and connect the region to more places.
