WINNIPEG – Exchange Income Corp. has entered into an agreement to buy Canadian North.
The northern airline is set to be purchased for $205 million.
Canadian North provides passenger and cargo service to 24 remote Canadian Arctic communities in Nunavut and the Northwest Territories through Ottawa and Edmonton, as well as dedicated charters in northern Alberta and B.C.
EIC says Canadian North’s routes are “highly complementary” to those it already services.
Its subsidiary Calm Air services the central region of Nunavut, while the company has no presence in the Northwest Territories.
The company says the acquisition means it will be able to service all the regions in the Far North, and will provide opportunities for its other aviation companies. In addition to Calm Air, its subsidiaries include Carson Air, Keewatin Air and Perimeter Aviation.
“Canadian North will be a natural fit with our other northern air operators,” said EIC CEO Mike Pyle, adding the deal will “lead to increased efficiency and enhanced service levels in the region.”
Canadian North CEO Shelly De Caria said having a strong parent company with “roots in the North” is critical to the airline’s success. She said the acquisition will allow Canadian North to grow its business and expand its services.
De Caria is the airline’s first Inuk president and CEO of the airline, having been appointed in December 2023.
Canadian North has been grappling with challenges including a pilot shortage and a lack of government funding. Infrastructure, such as short, unpaved runways, also limits the airline’s operations.
Canadian North merged with First Air in 2019. However, since the merger, Canadian North has flown fewer scheduled flights than the two airlines did collectively before 2019.
EIC focuses on aerospace and aviation as well as manufacturing, with subsidiaries that span medevac services in the North to defence-sector components.
The acquisition will exclude the route between Montreal and Kuujjuaq, which will be maintained by Makivik Corp.
The deal, which is still subject to regulatory approvals, is expected to close later this year.
— With files from Christopher Reynolds
This report by The Canadian Press was first published Feb. 24, 2025.
Companies in this story: (TSX:EIF)
