Exchange Income Corporation (EIC), an aviation and manufacturing holding, has signed a binding agreement to acquire Bradley Air Services, trading as Canadian North (5T, Yellowknife), from Makivvik and the Inuvialuit Development Corporation for CAD205 million Canadian dollars (USD144 million). The transaction excludes a single route, which will be taken over by Air Inuit.
"We love the North and have become a leading operator in this unique region over many years, which started with our very first acquisition, Perimeter Aviation. We have spent decades understanding, investing and building relationships in northern Canada. Canadian North is a major provider of these services outside of EIC, operating in markets that we don’t currently serve. Canadian North will be a natural fit with our other northern air operators," EIC's chief executive, Mike Pyle, said.
EIC said the acquisition will be funded from its existing credit facility (CAD195 million (USD137 million)), complimented by newly issued shares to the tune of CAD10 million (USD7 million). The transaction is subject to customary conditions and is expected to close in 2025.
Canadian North operates 33 aircraft, including one ATR42-300, four ATR42-300(QC)s, one ATR42-320, one ATR42-320(QC), six ATR42-500s, two ATR72-500(F)s, three B737-300s, two B737-300(QC)s, one B737-400, two B737-400(C)s, one B737-400(F), and nine B737-700s. It operates a mix of scheduled flights, which provide around two-thirds of its revenues, and on-demand charters. It serves communities in Nunavut and the Northwest Territories on a scheduled basis and in Alberta and British Columbia on a charter basis, mainly out of its Ottawa International and Edmonton International bases. Canadian North also owns hangars at Iqaluit, Yellowknife, Calgary, Edmonton, and Ottawa airports.
Makivvik, an Inuit land claims organisation, said that the sale would not affect Canadian North's operations. A single route currently served by the airline, from Montréal Trudeau to Kuujjuaq, will be contracted by Makivvik to Air Inuit starting on October 1, 2025.
EIC also owns Calm Air, Perimeter Aviation, Carson Air, Keewatin Air, PAL Airlines (Canada), and lessor Regional One, among other aerospace and manufacturing companies. The holding said that its acquisition of Canadian North would broaden its airline footprint to the Northwest Territories, where EIC is not currently present.
