Ottawa/CMEDIA: Canada’s Minister of Transport, Omar Alghabra, announced today the agreement between the Government of Canada and Canadian North’s new terms and conditions to enable Canadian North to continue to provide cost-effective services including travelling to appointments to helping deliver essential necessities such as food, medicine and other goods to rural and remote communities, a news release said.
There has also been an agreement on a profit cap enabling the Government of Canada and Canadian North (100% Inuit-owned airline) to adjust fares and routes to remain viable without cutting off communities or placing a significant financial burden on northern travellers.
Since the Government of Canada approved the merger of First Air and Canadian North in 2019, subject to several terms and conditions meant to protect the public interest there has been a dramatic change in the transportation landscape due to the sudden onset of the COVID-19 pandemic and its lasting effects.
Canadian North was exempted from its scheduling obligations during the pandemic and received $138 million in direct funding from the Government of Canada.
“Canadian North provides an important service to the North, and is the only true full network air carrier in much of the region…ensure northern and remote communities have the access to the air services they need, while at the same time ensuring Canadian North remains a viable service provider,” said Alghabra.
25 communities are serviced by Canadian North — all turboprop aircraft are gravel and ice strips equipped for landing in remote locations — in Northwest Territories, Nunavik and Nunavut, as well as Ottawa, Montreal, Edmonton and Calgary.
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