Jennifer Pritchett
Northern News Services

RANKIN INLET (Jun 10/98) - Canadian North and NorTerra Inc. have reached an agreement for the sale of the airline following a meeting in Rankin Inlet on Monday.

"The deal has been signed -- the purchase and sale has been approved by the board of directors of both Canadian Airlines and NorTerra," said David Burnett, president of NorTerra Inc.

A management and holding company owned equally by the Inuvialuit Development Corp. and Nunassi Corp., NorTerra is expected to take over full ownership of the airline at the end of August.

"We have made arrangements with Canadian to continue operating the stations until the end of August," said Burnett. "It will really be the end of September when the changes will happen."

Among the changes planned is the relocation of head offices to Yellowknife and setting up a regional office in Iqaluit.

Burnett maintains there will be no change to present routes or the Canadian Plus frequent-flyer program. In addition, he expects no reduction in Canadian North's workforce or an increase in airfares. Neither Canadian Airlines nor Norterra would release what was paid for the airline.