First Air, Canadian North in merger talks to create new air service – Edmonton Journal
April 16, 2014
EDMONTON – The owners of First Air and Canadian North are in merger talks aimed at creating a single airline that would build on the strengths of both companies.
A merger between the two aboriginal-owned carriers would improve both airlines’ sustainability, creating better air services and new economic development opportunities, the companies say.
“We are really looking at this as a one plus one equals three situation,” Peter McCart, vice-president of passenger sales and marketing with Canadian North, said in an interview.
“It could be the potential joining up of two operations that have a lot of similarities in terms of their strengths and their operating styles and the markets that they serve.
“There are certainly some complementary things about these two airlines that will help us move the business ahead and actually grow it.”
Flight operations and services will remain independent and will not change during the merger talks and regulatory review phases, the companies said in a joint news release.
Each airline employs about 1,000 people. Job losses are not anticipated. McCart said meetings have been held to inform employees about the proposal.
“The employees that we spoke to in Iqaluit and Yellowknife as well as Calgary and Edmonton were actually quite positive and optimistic,” he said.
