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Economy

NWT explains how it’ll divide $8.7M fund for northern airlines

Last modified: May 8, 2020 at 7:27pm


The territorial government has announced how it will split $8.7 million in northern airline bailout funding received from the federal government last month.

Canadian North will get around two thirds of the money, amounting to $5,372,000. Air Tindi will receive the next-largest sum to the tune of $1,565,000.

Three other airlines split the rest: Northwestern Air Lease receives $793,000, North Wright Airways $589,000, and Aklak Air $381,000.

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Despite the severe impacts of Covid-19 and consequently stripped-back schedules in some cases, northern airlines have continued to serve Northwest Territories communities

“This funding is designed to ensure that the NWT’s scheduled passenger air carriers can continue to operate during the Covid-19 pandemic without the need to increase costs for consumers,” said finance minister Caroline Wawzonek in a statement.

The money is also meant to help airlines keep providing communities with essential goods like food and medical supplies.

The federal funding was initially announced on April 14. The aviation industry is also receiving territorial assistance in the form of waived landing fees at airports and waived lease, licence, and concession fees for businesses that operate at airports.

The NWT government now estimates these waivers, in effect from April through to June, will save businesses collectively around $2 million, up from $1 million it suggested on March 31.

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The government said it plans to continue to lobby the federal government for money to support other NWT airlines that don’t offer scheduled passenger services, like charter companies.

Katrina Nokleby, the tourism minister, told tour operators on Friday that “additional support is on the way for our airline industry.”

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