Canadian North (5T, Yellowknife) and First Air (Carp) have announced the termination of merger talks which started earlier on this year in April. Despite the collapse, both airlines have committed to maintaining their positive working relationship.
"Makivik Corporation and NorTerra Inc., respectively the shareholders of First Air and Canadian North, announce that they have terminated discussions aimed at merging their airline operations, and no such further discussions are envisaged," a joint communique stated.
No reason for the collapse was given.
Had the merger gone through, it would have seen the emergence of a single airline entity that would have been more economically sustainable in the long run.
Out of its southern Edmonton International and Ottawa International hubs, Canadian North specializes in serving the country's Northwest Territories and Nunavut using a fleet of B737-200s, B737-300s, and Dash 8-100s. It is a subsidiary of NorTerra Inc. and is owned by the Inuvialuit Development Corporation which represents the Inuvialuit tribe of the Western Arctic.
For its part, First Air offers an extensive scheduled, cargo, and charter network to Canada's remote northern regions using a mixed fleet of 20 passenger and cargo aircraft including ATR42s, ATR72s, B737-200s, B737-400s, a B767-200(F) and a pair of Lockheed Hercules. Its parent, the Makivik Corporation, is the legal representative of Quebec's Inuit tribe.
