Arthur Milnes
Northern News Services

NNSL (Aug 12/98) - First Air says it has no apologies to make after entering into discussions towards providing discounted fares to Edmonton for BHP employees.

If finalized, the deal could see BHP workers getting return fares to Edmonton for as low as $375. Normally, the fare runs into the $500 to $800 range.

The company says it has been approached by a BHP employee group, not the company itself, that is interested in purchasing "thousands" of such tickets over a multi-year deal, First Air's general manager says.

"Absolutely not, we're very pro-development of the Northwest Territories and Yellowknife," says Bruce Jonasson when asked about perceptions the deal could be seen as being anti-Northern development Tuesday.

"It's a situation of a normal business deal where a group brings us an incredible volume on a slower day of the week and they got the appropriate pricing for the package they desired."

With approximately 350 workers across the North and a 50-year corporate history here, Jonasson rejected notions that his company is going against Northern interests with this deal.

He also said First Air would be interested in offering similar deals to others in Yellowknife and across the NWT.

"First Air is approaching private sector partners in the Northwest Territories, proactively seeking out business agreements with customers who can guarantee quantity and frequency of flights over a specified period of time," he noted in a written statement. "First Air extends this business opportunity to any business and citizen group."

The matter was on the agenda at city hall Monday afternoon and Yellowknife Mayor Dave Lovell says he is not pleased with news of such an agreement in the offing.

"A company dedicated to serving the North (First Air) could be seen here as undercutting the North," Lovell says. "My question is, why aren't they giving the same fare to everyone in the territories?"

Saying that discount fares could deter Ekati rotational employees from setting up homes in Yellowknife and encourage southern shopping trips and vacations, the city has now sent letters to the NWT and Yellowknife Chambers of Commerce, the NWT Association of Municipalities and the GNWT bringing the issue to their attention.

At Canadian North, regional director of sales, Kelly Kaylo says that her company was also approached by the BHP employee group. However, no deal was made.

"Offering reduced fares doesn't encourage them (BHP employees) to live in the North and hence benefit the local economy," she says. "Offering cut-rate fares to those who live in the south will not benefit the NWT economy... We're going to respond to Northerners' transportation requirements."

At BHP, company spokesperson Graham Nicholls said this was a private matter between employees and the airline. His company, he says, is not involved.