Airline monopoly worries outfitters

by Cheryl Leschasin
Northern News Services

NNSL (Aug 11/97) - The Eastern Arctic tourism industry has finally begun to take root over the past decade. But now Nunavut residents are concerned the First Air buyout of NWT Air, could shake those roots loose.

The threat, according to tourism outfitters, is high air fares.

Case in point: throughout the spring a young bowhead whale was trapped in the waters around Arctic Bay. Locals anticipated extra tourism dollars from people coming to see the whale. Don Moors of Niglasuk Company in Arctic Bay said that didn't happen.

"Our problem was airfares. There wasn't a lot of increase in tourism," he said.

With three main airlines operating in the North -- First Air, NWT Air and Canadian North, air tickets to Eastern Arctic were still pricey. But now outfitters are worried that First Air's purchase of NWT Air a few weeks ago will eventually drive up the prices even higher.

"I'm not sure it's a healthy situation," said Matty McNair of Northwind Adventure Tours in Iqaluit. "The ratio they (tourists) are paying for transportation is really high in the North."

But Tracy Beeman, director of passenger marketing and sales, said First Air plans to continue to actively promote and support tourism in the North.

"We have no indication of changing our tourism program," said Beeman.

That program involves offering outfitters package discounts to bring tourists to the North, and Beeman said that will not change. "We intend to encourage tourism by making package prices available to outfitters," she said.

Not everyone is convinced, though.

"Certainly the airfares are going to increase and it's going to hurt -- not only tourism, but people who just want to travel home," said Jerome Knatt of Canada North Outfitting in Ottawa.

For Nunavut outfitters, the uncertainty of how the buyout will affect airline prices is a frightening position to be in.

"Tourism is about the only sustainable industry for us," said Arctic Bay's Don Moors. "With one company running both, I don't see First Air saying 'Let's drop our prices in the East by 20 percent.' "