The Inuit organizations that own Canadian North say they have agreed to sell the airline to Winnipeg-based Exchange Income Corporation for a provisional fee of $205 million.
Exchange Income Corporation, known as EIC, describes itself as an “acquisition-oriented company focused on opportunities in the aerospace and aviation and manufacturing segments.”
Canadian North is the major airline across much of the North, connecting Yellowknife to smaller NWT communities and covering most of Nunavut.
Its current owners are Nunavik Inuit corporation Makivvik and the Inuvialuit Development Corporation.
Makivvik, the majority owner, said on Monday it had agreed to the sale following a “thorough and strategic review process.”
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“Makivvik is proud of the legacy we have built with Canadian North and the essential service it has provided to Inuit and Northern communities. This decision was made with the best interests of our people in mind, and we are confident that under EIC’s leadership, the airline will continue to thrive and enhance transportation services in the Arctic,” Makivvik stated on its website.
As the minority shareholder, the IDC said Makivvik’s decision meant it was required to sell its stake in the airline, too.
Makivvik and the IDC had jointly operated Canadian North since the airline merged with First Air in 2019.
“The sale does not impact the current operations of Canadian North at this time, and the airline will continue to provide service to its customers and communities,” Makivvik stated.
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The Kuujjuaq-Montreal route is the only part of the airline’s operations not being sold to EIC. Makivvik said it would keep that route going itself until later this year, when Air Inuit is expected to take it over.
‘Stable and efficient service’ promised
Canadian North is not EIC’s first foray into northern aviation. Calm Air, which serves Nunavut, is an EIC subsidiary. Perimeter Aviation, which serves isolated Manitoba communities, was EIC’s first acquisition in 2004.
EIC said Canadian North was a “highly complementary” business to acquire that offered the company a presence for the first time in the Northwest Territories.
“This investment also provides EIC passenger and cargo jet service and infrastructure in the North to provide opportunities for our other aviation companies,” EIC stated.
“The acquisition of Canadian North will enable EIC to service all regions in the far North for the first time. As an experienced operator who is dedicated to northern aviation, EIC will provide its customers in these regions with stable and efficient service.”
The financial status of Canadian North has not always been clear.
In 2023, then-chief executive Michael Rodyniuk declined to discuss specifics after a Makivvik representative told an Ottawa trade show the airline was “losing millions.”
“We’re not in the wildly profitable stage of the company, for certain,” Rodyniuk told Nunatsiaq News at the time.
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In a press release on Monday, EIC chief executive officer Mike Pyle was quoted as saying: “We have spent decades understanding, investing and building relationships in northern Canada.
“Canadian North will be a natural fit with our other northern air operators. 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.”
While a binding purchase agreement has been signed, the deal is subject to federal regulatory approvals and other conditions. EIC said it expects the transaction to be finalized “later this year.”
