NUNAVUT
We're here to stay - that's the message Canadian North wants to send to Nunavummiut with the launch of its 737-300 Combi on the Iqaluit-Ottawa route Jan. 2.

Lorraine Bonner, vice president of scheduled service and cargo for Canadian North, says the new 737-300 Combi deployed Jan. 2 on the Iqaluit-Ottawa route is built for passenger comfort. - Michele LeTourneau/NNSL photo

Vice president of scheduled service and cargo Lorraine Bonner stressed that customers should watch for the post-codeshare schedule coming out mid-January.

After First Air "blindsided" Canadian North by ending its codeshare partnership - effective May 17 -

the company focused on confirming its commitment to the region.

"We (will) go back into the four communities we are currently not flying to: Pond Inlet, Clyde River, Qikiqtarjuaq and Pangnirtung . as of May," said Bonner.

Canadian North currently has a fleet of 10 737-300s, two of them with combined passenger and cargo capacity. Bonner says the cost of converting the aircraft is extremely expensive, but the new planes enhance the fleet.

"It's 20 per cent more efficient, so 20 per cent less fuel. It has three configurations, so it can operate all-passenger at 136 seats. We can operate it in a configuration of three positions of cargo."

The cargo hold is bigger, too. Other benefits include leather seating, in-flight entertainment, a quieter cabin, and larger bins for luggage and parkas.

In the south, Bonner says, passenger loads are usually at about 85 per cent, whereas in the North passenger loads are generally at 47 per cent across the network, which affects the cost of travel. Codeshare increased passenger load by about 5 per cent.

In cargo, Canadian North carries produce for Arctic Ventures, items for wholesaler Ben Deshaies Inc., and 24-hour priority mail and regular mail for Canada Post. The airline shares Government of Nunavut medical and duty travel, based on cost.

"We get the majority because we are cheaper," said Bonner.

Regular passengers don't see those cheaper prices because, she explains, it's a multi-million dollar contract based on volume. That government contract, however, also contributes to the cost of flights generally and leads passengers to expect more than they would get from southern airlines.

For example, the airline is required to provide a hot meal for medical travelers.

"How can you differentiate between passengers? You never, never want to highlight that someone is on medical travel. So if you're obligate contractually to provide a hot meal, of course everyone on the airplane gets a hot meal," said Bonner.

As well, the government contract stipulates that aircraft must have a washroom for any flights exceeding one hour, which means every flight. That means smaller planes can't be used.

The codeshare showed that fewer flights are not an option.

"There were less seats available because we had combined some of the operations. But people in the North were used to having half the plane empty. It became a commonly discussed topic that less seats were available," said Bonner. "There were less seats available but both airlines were actually finally able to break even in some of the markets."

Basic costs that influence ticket prices are the cost of the aircraft, crewing, catering, booking charges, aircraft maintenance, Nav Canada fees, ground operation fees, landing fees and fuel.

Canadian North is not worried about a larger carrier coming into the Iqaluit-Ottawa market.

"Air Canada has been in this market before. We would match any low prices that they have as long as they're reasonable. Because no airline, whether it's Air Canada or WestJet or GoSarvaq can continue to operate at pricing in the $299, $399 or $499 market," said Bonner.

The current cost for a ticket Ottawa-Iqaluit return 14 days in advance is $1170 before tax.

On Jan. 4, Air Canada and WestJet both told Nunavut News/North they currently have no plans to enter the Iqaluit-Ottawa market, though Air Canada stated, "We are always looking and developing new markets."