Ottawa Head Croar operator Canada North shareholders have signed a binding agreement to sell the airline to a replacement-owned company (EIC) for $205 million ($143 million).
The agreement to sell Bradley Air Services, which operates as Northern Canada, was disclosed on February 24 by shareholders Makvvik Corporation and Inuvialuit Development Corporation.
Pending regulatory approvals and “other customary closure conditions” include $10 million in EIC shares and $195 million in cash from the EIC line of credit.
Passengers and cargo in Canada's North Fly serve 24 communities that rely heavily on air transport, from gateways in Edmonton and Ottawa to remote areas in Nunavut and the northwest territories. It operates a fleet of Boeing 737 and ATR turboprops.
EIC describes itself as “a diverse acquisition-oriented company focused on opportunity” in aviation and aerospace manufacturing. Northern Canada will add passengers and freight operators in Canadian stables, including Manitoba-based Calm Air, Newfoundland's Pal Airlines, and Winnipeg-based companies Perimeter Aviation and Keewatin Air.
“With the acquisition of Northern Canada, EIC is a unique opportunity to acquire Northern airlines operating in adjacent regions and operated on routes that are very complementary to those who are serving EIC. “We provide the following.”
The company claims that the networks of both companies are “very complementary.”
“Canadian North provides passenger and freight services in the eastern and western regions of Nunavut, as well as the Calm Air Services Central Region, a subsidiary of EIC,” Eic said. “Northern Canada is also active in the Northwest region where EICs do not have passengers or cargo.”
In particular, the EIC says it will be suspended between Montreal and Couge Juac, Quebec later this year.
Existing reservations for travel on the Montreal-Qujuak route after October 1st will be moved from northern Canada to Inuit.
“Air travel in this area is a truly important service,” Eic says of Canada's far north. “There is no road access to Nunavut from other parts of Canada, and road introductions are unlikely to occur in the near future.”
Canadian North says it will retain many of its previous identifications after the transaction with the EIC is completed.
“In this transaction, Canada North maintains our brand and leadership team, and most importantly, our mission to improve lives in the communities we serve ” says the airline.
