Doug Ashbury
Northern News Services

NNSL (Aug 30/99) - Onex Corp.'s proposed $1.8-billion Air Canada-Canadian Airlines deal won't affect Northern competition, says Canadian North president Carmen Loberg.

"I want our customers to know we're committed to competition in the North," Loberg said.

"I believe there is room in the North for two carriers."

In the NWT and Nunavut, Canadian North competes with Makivik-owned First Air. First Air president Bob Davis could not be reached for comment.

NorTerra Inc. acquired Canadian North from Canadian Airlines in 1998. NorTerra is owned by the Inuvialuit Development Corp. and Nunasi, the Nunavut-wide economic development corporation.

Canadian North's approach is that of an independent, Northern-owned company, Loberg said.

But Canadian North has retained links with its former owner through pilot, flight attendant and maintenance contracts.

Asked if the Northern airline environment might not resemble that of south of 60 -- where two carriers fail to make money -- Loberg preferred not to comment on financial results of Canadian North since it was bought from Canadian, but he did say "our shareholders are pleased" with the results.

He also said, "We'll be very proactive at maintaining our strong southern network."