Calm Air Parent Agrees to Buy Canadian North for $205 Million

Exchange Income Corp. (EIC) – parent of Calm Air — has entered into an agreement to buy Canadian North for $205 million.

Canadian North provides passenger and cargo service to 24 remote Canadian Arctic communities in Nunavut and the Northwest Territories through Ottawa and Edmonton, as well as dedicated charters in northern Alberta and B.C. 

In a Canadian Press report, EIC says Canadian North’s routes are “highly complementary” to those it already offers. Its subsidiary Calm Air services the central region of Nunavut, but has no presence in the Northwest Territories. 

The company says the acquisition means it will be able to service all the regions in the Far North, and will provide opportunities for its other aviation companies which include Carson Air, PAL Airlines, Keewatin Air and Perimeter Aviation. 

“Canadian North will be a natural fit with our other northern air operators,” said EIC CEO Mike Pyle, adding the deal will “lead to increased efficiency and enhanced service levels in the region.” 

Canadian North CEO Shelly De Caria – the airline’s first Inuk president and CEO — said having a strong parent company with “roots in the North” is critical to the airline’s success. She said the acquisition will allow the airline to grow its business and expand its services. 

Canadian North merged with First Air in 2019. However, since the merger, Canadian North has flown fewer scheduled flights than the two airlines did collectively before 2019. The company faces challenges including a pilot shortage and infrastructure limitations.

Canadian North operates a fleet of 33 passenger and cargo planes, including nine Boeing 737 Classic and nine Boeing 737 Next Generation aircraft.

The deal, which is still subject to regulatory approvals, is expected to close later this year.