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SOMBA K'E/YELLOWKNIFE - Charter company Summit Air is starting to feel the pain of slowing exploration work in the territory.

The company recently laid off staff across the board, citing plain lack of work as the reason for the cuts.

Charter airline company Summit Air recently laid off both pilots and support staff. Company co-owner Steve Tanton blamed the layoffs on slowdown in mine exploration which means lost business for the airline. - photo courtesy of Summit Air

"Exploration mines are waiting for their cash. Everybody is in a wait and see mode right now," said Steve Tanton, company co-owner and operation manager.

He said exploration companies require a lot of capital investment for projects to go ahead.

"Their projects moving forward mean we move forward," he added, saying it only takes one look at the stock market to see how low commodities prices have dipped.

Tanton said the layoffs encompassed "a little bit of every section of our company: pilots, office staff, ground staff - everything.

"They're all temporary layoffs. We're hoping to call everybody back before April," he said.

Tanton would not say how many staff members were told to stay home, or what percentage of his workforce the layoffs represented: "As for numbers, no, I don't really want to talk about numbers."

Tanton did say flights have decreased to two or three per week.

"This time is a very slow time for us traditionally - it's just a lot slower," he said, adding in the summer the company normally has planes flying every day.

In mid-2007 Summit employed 15 pilots, 25 support employees and owned six planes, according to the most recent numbers in Yellowknifer archives. Tanton did not respond to inquiries on current staff numbers. Summit increased its fleet to eight planes since 2007, which suggests staff increases at that time.

"The economy is straining everybody up here," said Tanton of the lay-offs. To ease that strain Tanton will be looking outside of Canada for work.

Mike Vaydik, general manager of the NWT & Nunavut Chamber of Mines, said while there is some concern aviation companies will use their mobility to fly elsewhere, he isn't too worried providers like Summit will stay away.

"If the exploration business and the mining industry turns around they'll all be back. They go where the business is," he said.

Vaydik added it's likely new exploration will still stay to a minimum throughout the summer.

"I think we can say that with a few exceptions - and they're quite few - that a lot of companies will not be undertaking new exploration programs this summer," he said.

Vaydik said he'll get a better tap on the exploration business at the upcoming exploration conference in Vancouver at Mineral Exploration Roundup 2009, but said prospects don't look good.

"It's not looking extremely positive going forward," he said.

Like Tanton, Vaydik said the fate of the exploration companies - and the companies that provide them service - hinges on the commodities market.

While news looks pretty grey going forward, Vaydik said there is one silver lining in the mineral cycle downturn: that it "will underscore mining's impact on the economy of Yellowknife and the Northwest Territories.

"I hope it will just rekindle the awareness of its importance."