"We want to work with the synergies and take the best from both (carriers)," First Air president and CEO Bob Davis said.

"There may be a small reduction in staff" but there is no plan to "significantly change routes," he said.

Operating the two companies as one business could mean changing the type of plane used on some routes.

Changing how NWT Air aircraft look has not be decided.

Davis also said new NAV Canada fees were a contributing factor in the corporate merger.

First Air recently announced it would have to hike prices in the wake of new NAV Canada fees.

Boards of both carriers have agreed to a corporate merger effective March 1.

"The companies are being amalgamated in order to take advantage of the operating synergies and cost efficiencies not otherwise available as separate entities," Davis and NWT Air president and chief operating officer Scott Bateman said.

They said it is "crucial" that the carriers combine resources to provide a "seamless and consistent product at a suitable cost."

"This is about putting the aviation industry on a sound financial footing," Bateman said.

The two carriers currently operate with little route overlap.

NWT Air operates two Boeing 737s serving Yellowknife, Edmonton, Inuvik, Cambridge Bay, Rankin Inlet, Iqaluit and Winnipeg.

First Air, with fleet of 30 aircraft, flies routes between Whitehorse, Greenland, Yellowknife, Ottawa and Montreal.

Nunavik-based Makavik is owned by the beneficiaries of the James Bay Northern Quebec land claim agreement.