Yellowknife (Jun 23/06) - An Ontario airline company says it will base its headquarters in Yellowknife, a move that could bring 200 jobs to this city.

Discovery Air Inc. president David Taylor made the announcement Thursday at the Explorer Hotel.

David Taylor, CEO of Discovery Air (left), speaks with John Carter, executive director of the NWT chamber of commerce June 22. - Philippe Morin/NNSL photo The companies Great Slave Helicopters Fleet of 70 light and medium helicopters. Workforce of about 240 Great Slave recently announced purchase of six new Eurocopters for $7 million each, three arriving this year and three in 2007. Has partnerships with aboriginal organizations in 16 NWT and Nunavut communities. Air Tindi Started in 1988. Fleet includes 25 planes that operate on wheels, floats and skis. Workforce of up to 200 people during the peak season. Includes three Dash-7 planes, including a new all-passenger model that went into service in April. Offers scheduled service to Snare Lake, Lutsel K'e, Rae Lakes, Whati, Fort Simpson and Yellowknife. With its partner Aklak Air, operates seven Kin Air planes devoted to medevac service. Discovery Air Was incorporated in November 2004. In December 2004, the company purchased 50 per cent of the shares of Hicks and Lawrence Ltd., a company that provides air services to Ontario communities and holds two Ontario government contracts to provide air services in support of a forest fire management program. Discovery purchased the remaining 50 per cent of H&L shares in August 2005.

Taylor was in Yellowknife to complete the purchase of Great Slave Helicopters, a deal that's worth $120 million in cash and stock.

As well, Discovery announced yesterday that it had reached a letter of understanding to purchase all the shares of Yellowknife-based Air Tindi. That cash and stock deal is expected to be complete by this fall. No dollar figure was announced.

Discovery Air is an investment company with holdings in Ontario and ties to Pacific and Western Bank.

Taylor said it makes sense to base the company here because the majority of its focus will be in the North.

"Considering 99 per cent of revenue would come from Yellowknife, it's only appropriate," he told a crowd of guests ushered in to hear the announcement, to much applause. While Great Slave and Tindi will continue to operate under their current names and no workers will be laid off, they will become part of a corporate structure.

According to a press release from the company, Discovery Air's "goal is to consolidate the ... niche aviation industry to realize synergies and economies of scale, thereby creating a profitable and diversified company...."

Adam Bembridge and Ian Campbell, current owners of Great Slave Helicopters, will sell their interest to Discovery Air, but then buy enough stock to become major shareholders in the airline.

John Carter, executive director of the NWT Chamber of Commerce, said the deal was good news.

"Great Slave is the second largest helicopter company in Canada," he said. "Now, with more access to capital, who says they can't be the biggest?"

Carter said that the merger would be a good thing because it would allow the company to offer a "whole package deal," for transport, which includes helicopter, float planes and air freight.

"This is good for the North," he said.

Alex Arychuk, president and director of maintenance for Tindi, was similarly enthusiastic.

He said both Tindi and Discovery agreed to work together and explore "new synergies."

He said access to new capital - such as the resources promised by Discovery Air - might help the company expand.

"The sandbox just got bigger," he said.

Discovery Air is listed on the Toronto Stock exchange.