Canadian North being sold to Winnipeg-based company for $205M
One of the North's major airlines is being sold.
Winnipeg-based Exchange Income Corporation (EIC) announced on Monday that it will buy Canadian North for $205 million, subject to regulatory approval. The company promised the sale would mean better service to northern communities.
Exchange Income Corporation already owns several aviation companies that operate in northern and remote regions, including Calm Air, Perimeter Aviation, Keewatin Air and Custom Helicopters.
"Canadian North will be a natural fit with our other northern air operators. Combining our aviation resources, knowledge, and assets with the team at Canadian North, will lead to increased efficiency and enhanced service levels in the region," said Mike Pyle, CEO of EIC, in a statement.
Canadian North, which offers passenger and cargo service to 24 communities in the N.W.T. and Nunavut as well as charter service for the resource industry, is currently owned by the Makivvik Corporation and the Inuvialuit Development Corporation. It operates out of Edmonton and Ottawa.
The sale, if approved by the Competition Bureau and Transport Canada, is expected to be finalized later this year.
Speaking to Radio-Canada on Tuesday, EIC president Carmele Peter said the acquisition had been in the works for a while. She said Calm Air — an EIC subsidiary — currently serves the Kivalliq region in Nunavut, while Canadian North offers similar service to the east and west of that region.
"So when you look at the landscape, obviously we saw an opportunity to be able to look at providing that service holistically across the whole region by the addition of Canadian North," Peter said.
"We thought it was a good fit, a good opportunity, and hopefully the communities will benefit from it."
Peter also said EIC owns two pilot schools, so that could help with recruiting at Canadian North amid an ongoing pilot shortage across Canada.
She couldn't say how the sale might affect Canadian North's fares or schedules, saying: "it will be the market that determines what's possible."
For now, though, she said it will be "business as usual" at the airline.
'Good news,' analyst says
John Gradek, who teaches aviation management at McGill University, welcomed news of the sale.
"I think it's good news, because we don't have to question the financial viability of Canadian North. I think there's always the question — are Northern carriers profitable?" Gradek said.
He said the sale means "we can basically put the 'Good Housekeeping seal of approval' on Canadian North."
Still, he acknowledged it means less competition in the northern aviation sector, and that changes may be on the way for Canadian North. He noted EIC is "in there to make money."
"They're going to be asking a lot more pointed questions of Canadian North's operating profitability. Which may put into question some of the routes, and some of the aircraft that Canadian North are operating today."
The airline is due for some big upgrades to its fleet and operation plan, Gradek said.
"It's going to take a few million dollars, several million dollars, of Exchange [Income Corp.] investing in Canadian North to improve the product. And I think that's a question mark," Gradek said.
"Are they looking at this as an investment, or are they just looking to eliminate a competitor?"
Speaking in the Nunavut legislature on Tuesday abut the sale, Transportation Minister David Akeeagok said the territorial government has been "assured that there will be no impact on service for Nunavummiut."
"We look forward to engaging with Exchange Income Corporation and Canadian North throughout this transition to ensure air services remain reliable, accessible, and sustainable. We remain committed to working with all stakeholders and regulators as this process moves forward," he said.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Winnipeg Free Press
8 hours ago
- Winnipeg Free Press
Critical minerals give China an edge in trade negotiations
GANZHOU, China (AP) — China's dominance over critical minerals in global supply chains was a powerful bargaining chip in trade talks between Beijing and Washington that concluded with both sides saying they have a framework to pursue a deal. China has spent decades building the world's main industrial chain for mining and processing such materials, which are used in many industries such as electronics, advanced manufacturing, defense and health care. Mines and factories in and around Ganzhou, a key production hub for rare earths, underpin China's control over the minerals. Many residents grew up collecting rocks containing the valuable minerals from the forested hills surrounding the southern city and today make a living from mining, trading or processing them. Critical minerals as a trade issue Responding to ever higher tariffs and other controls on advanced technology, China told exporters of certain key rare earths and other critical minerals to obtain licenses for every shipment abroad. Approvals can take weeks, leading to supply chain disruptions in the U.S. and other countries. President Donald Trump said Wednesday that China would make it easier for American industry to obtain much-needed needed magnets and rare earth minerals, clearing the way for talks to continue between the world's two biggest economies. In return, Trump said, the U.S. will stop efforts to revoke the visas of Chinese nationals on U.S. college campuses. But details remain scarce. Beijing has not confirmed what the negotiators agreed to, and Chinese President Xi Jinping and Trump himself have yet to sign off on it. The Chinese Commerce Ministry said Saturday it had approved a 'certain number' of export licenses for rare earth products, apparently acknowledging Trump's personal request to Xi during a phone call last week. And on Wednesday, the Ganzhou-based rare-earth conglomerate JL MAG Rare-Earth Co. confirmed it had obtained some export licenses for shipments to destinations including the U.S., Europe and Southeast Asia. Experts say, however, Beijing is unlikely to do away with the permit system enabling it to control access to those valuable resources. The only scenario in which China might deregulate its critical minerals export is if the U.S. first fully removes tariffs imposed on Chinese goods as part of the trade war, said Wang Yiwei, a professor of international affairs at Renmin University, echoing the Chinese government's earlier stance. 'Without that,' he said, 'it will be difficult to blame China for continuing to strengthen its export controls.' An industry built over decades with government support In 1992, Deng Xiaoping, the leader who launched China's ascent as the world's biggest manufacturing power, famously said 'the Middle East has oil, China has rare earths,' signaling a desire to leverage access to the key minerals. Several generations later, Beijing has made its rich reserves of rare earths, a group of 17 minerals that are abundant in the earth's crust but hard, expensive and environmentally polluting to process, a key element of China's economic security. In 2019, during a visit to a rare earth processing plant in Ganzhou, Xi described rare earths as a 'vital strategic resource.' China today has an essential monopoly over 'heavy rare earths,' used for making powerful, heat-resistance magnets used in industries such as defense and electric vehicles. The country also produces around 80% of the world's tungsten, gallium and antimony, and 60% of the world's germanium -– all minerals used in the making of semiconductors, among other advanced technologies. The risks of dependency on Chinese suppliers first came into focus in 2010, when Beijing suspended rare earths exports to Japan due to a territorial dispute. The ban was lifted after about two months, but as a precaution, Japan invested in rare earths processing plants in other countries and began stockpiling the materials. Beijing's across-the-board requirement for export licenses for some critical minerals has put pressure on world electronics manufacturers and automakers. Some auto parts makers in Europe have shut down production lines due to delays in supply deliveries, according to the European Association of Automotive Suppliers. In the U.S., Tesla CEO Elon Musk said a shortage of rare earths is affecting his company's work on humanoid robots. China's critical minerals resources are dwindling In the drab industrial hub of Ganzhou, cradled by the scenic Dayu Mountains, the U.S.-China trade war is still a distant stressor. Miners and small mineral traders interviewed by The Associated Press said they are more concerned about depleting the mountains' once-abundant resources. Zhong, a tungsten factory manager in Ganzhou who would only give his last name, worked his way up to manager from a miner, but he's unsure there is a future for him and others in the industry. 'I find growing difficulties to source tungsten these days,' he said, adding that smaller mines and trading companies are slowly disappearing as the resources are dwindling. Tungsten is an ultra-hard metal used in armor-piercing ammunition, nuclear reactors and semiconductors. At least five tungsten mines have closed in the area in recent years, according to state media. Remaining reserves are deeper and harder to extract and process after decades of exploitation, said Li Shangkui, chairman of the Ganzhou-based Jiangxi Yuean Advanced Materials Co., Ltd. Processing factories in Ganzhou now routinely source materials from other provinces or other countries. Zhong's plant imports some raw materials from places like Africa and Cambodia. Major state-owned and private companies in Ganzhou are also ramping up investments abroad. Tungsten producer Ganzhou Haisheng, for instance, announced last year a $25 million investment in a new tungsten plant in Thailand. Whatever the challenges in procuring raw materials, China likely will seek to maintain its dominance in critical minerals, said Fabian Villalobos, an engineer and critical minerals expert at the RAND think tank. The U.S. lags far behind China on critical minerals Between 2020 and 2023, the U.S. imported at least 70% of the rare earth compounds it used from China, according to the U.S. Geological Survey. It has diversified its sources in recent years, but still mainly relies on China. Since beginning his second term in office, Trump has made improving access to critical minerals a matter of national security. But the U.S. has an incredibly long way to go to catch up with China, experts say. The sole operational U.S. rare earths mine, in Mountain Pass, California, is unable to separate heavy rare earths. It sends its ore to China for processing. The U.S. Defense Department has provided funding to the mine's owner, MP Materials, to build new separation facilities. It will take months to build and still only produce a fraction of what is needed. Friction over the issue has opened the way for government-backed financing that was unavailable before, said Mark Smith, who ran the Mountain Pass mine in the early 2010s and now leads NioCorp. It's seeking about $780 million in financing through the U.S. Export-Import Bank to build a processing facility in Nebraska for critical minerals including rare earths. The Defense Department has committed $439 million to building domestic rare earth supply chains, but building a complete mining and processing industrial chain like China's could take decades. 'There are going to be some real issues here unless we can figure out how to get along with China for a period of time while we're developing our own resources and our mainstream processing,' Smith said. The spotlight on critical minerals also provides opportunities for smaller miners to invest in extracting and processing some critical minerals, such as tungsten, considered 'niche' because they are needed in relatively small amounts in key industries, said Milo McBride, an expert on sustainability and geopolitics at the Carnegie Endowment for International Peace. 'For many of these companies, the business strategy hedges on a scenario where the U.S. and China become more confrontational and where trade relations become more uncomfortable,' McBride said. 'And all of a sudden, what was once an uneconomic project somewhere outside of China starts to make more sense.' ___ Associated Press news researcher Shihuan Chen contributed to this story.
Cision Canada
9 hours ago
- Cision Canada
Vantage Foundation Joins The Habbit Factory to Empower Young Voices Through Creative Confidence
LONDON, June 11, 2025 /CNW/ -- Vantage Foundation is proud to support The Habbit Factory, a London-based charity that uses the power of theatre and creativity to help children build self-confidence, resilience, and a sense of self-expression. This partnership reflects Vantage Foundation's commitment to community engagement and inclusive empowerment for young people – especially those from underserved or disadvantaged backgrounds. The Habbit Factory has been a champion of creative youth development for over 20 years. With a focus on inclusiveness and emotional support, the organisation designs theatre-based programmes for children and teens to improve public speaking, storytelling, and personal confidence. Today, the charity supports 156 young people through its membership programme and reaches hundreds more through school outreach and education partnerships. As part of its continued mission to uplift communities, Vantage Foundation volunteers joined The Habbit Factory's creative workshop, lending their time and energy to inspire the next generation. Among them was Ben Joseph, who brought his background in dance and performing arts to the session. "Many of these children come from disadvantaged backgrounds and may lack self-esteem or confidence," said Ben Joseph. "By earning their trust and creating a supportive space, we help them grow, express themselves, and discover who they are. The Habbit Factory is a safe and empowering place for every child, and I'm proud to have contributed to something so meaningful." The charity's impact is driven largely by volunteers – many of whom are former participants who return to give back. This cycle of mentorship and transformation lies at the heart of The Habbit Factory's enduring success. "We thoroughly enjoyed hosting the Vantage Foundation at The Habbit Factory. It was a meaningful opportunity for both teams to connect, share ideas, and learn from each other's approaches to community impact," said Lee Giles, Artistic Director & CEO of The Habbit Factory. "Supporting The Habbit Factory aligns deeply with our mission at Vantage Foundation," said Steven Xie, Executive Director of the Vantage Foundation. "We believe in building confidence through creativity and connection. Seeing our volunteers actively participate in such a powerful, community-led initiative reaffirms our commitment to creating meaningful impact in the lives of young people." Together, Vantage Foundation and The Habbit Factory demonstrate the incredible potential of partnerships rooted in compassion, creativity, and shared purpose. Through this collaboration, they aim to build a future where every child has not only the voice – but also the confidence – to use it. Vantage Foundation Vantage Foundation is an independent charitable organization launched at the McLaren Technology Centre in the UK in 2023. The foundation has partnered with organisations worldwide, including Grab Indonesia, the iREDE Foundation in Nigeria, Teach for Malaysia, and Instituto Claret in Brazil, to drive impactful social initiatives.
CTV News
10 hours ago
- CTV News
Demolition coming for empty fire damaged building on Main Street
The vacant burnt out building that the city is looking to demolish on Main Street. Uploaded June 11, 2025. (Jeff Keele/CTV News Winnipeg) The City of Winnipeg is looking for a contractor to do a wet demolition of a fire damaged building on Main Street. Wet demolition is a process to safely remove asbestos. A fire broke out at the vacant commercial building at 881 Main St. nearly four years ago. At the time, CTV News reported it was set for demolition. Beside the building is a burnt out church that caught fire twice in the last year. Coun. Ross Eadie said the city will pay for the work and then transfer the costs to the owner's property tax bill. 'The time limit is up. (The city) gave them a grace period and now they're putting out, and they're going to hire a company. The city will pay them to do a wet demolition,' said Eadie. It's a new policy, stemming from scores of problem properties plaguing inner-city neighbourhoods, where owners are dragging their feet on cleaning them up. A mountain of rubble, which once stood on the Sherbrooke Street lot, was one of the catalysts. The pile was left over for more than two years from an apartment building fire until the city stepped in, cleaned it up, and put the cost on the property tax bill.
