Canadian North (5T, Yellowknife) and Calm Air (MO, Thompson) are the two winners of a contract worth at least CAD100 million (USD75 million) from the government of the far northern territory of Nunavut, according to Nunatsiaq News. As previously reported, Canadian North is currently in the process of merging with First Air (Carp).
The agreement announced on August 23 is for air cargo and medical and duty travel. The new contracts come into effect on January 2020 and carry an initial term of three years with two optional renewals, first for an additional two years and then for one further year. They also include a public service component requiring a percentage of economy-class seats to be offered to the public.
North Star Air (Ontario) also bid for the contracts, unsuccessfully, after a request for proposals was sent out in January.
Calm Air will operate in the Kivalliq region, including Rankin Inlet and Sanikiluaq as well as Winnipeg International, according to the contract, while Canadian North will serve the Qikiqtaaluk and Kitikmeot regions and the routes Ottawa International-Iqaluit, and Iqaluit-Rankin Inlet-Yellowknife-Edmonton International.
Together, the merging First Air and Canadian North already operate the bulk of services to Nunavut's remote settlements. The territory is the size of Mexico but is inhabited by less than 40,000 people, many of them in settlements accessible only by air. In a joint statement issued on July 10, they said they would provide services "to northern customers and charter clients" under the name Canadian North once the integration is complete, a process expected to take 18 to 24 months. The two separate brands will continue during the initial stages.
