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NORTH
Months of speculation over a possible sale of First Air or a merger between the two largest Northern airlines has been brought to an end by First Air parent company Makivik Corporation.

Makivik Corporation is not considering the sale of all or part of its Northern airline, First Air. - NNSL file photo

The announcement last Wednesday that the corporation had concluded a "review of its strategic options" and will keep its 100 per cent ownership stake in the airline, came with the resignation of First Air president and CEO Kris Dolinki, who led the months-long review.

"It's an exciting time going forward here," said Chris Ferris, who has been appointed to replace Dolinki as interim president and CEO of First Air after Makivik announced its commitment to the airline in an Oct. 3 news release. "We'll be undertaking with management and with the board to take a look at what we're doing now and where we can make some improvements and enhancements and that will be a process over the next few months.

"We're looking to improve and I think it's an exciting time for our customers and communities that place the confidence and trust in us."

Talks of a merger between First Air and Norterra Inc. subsidiary Canadian North arose as the two largest Northern carriers struggled to recover from the recession while competing to fill seats along many of the same remote destination routes and schedule times.

Neither airline has publicly confirmed merger negotiations were underway, but Ferris confirmed that the Northern aviation industry has seen increased challenges for operators.

"I would say the last few years have been especially challenging for aviation in the North and it's been a transition period for us as a company but I think we're poised to come out the other side of it right now," Ferris said. "I think for our employees and for our customers, they should be encouraged that we're in a position to move forward and improve on the service that people have come to rely on and appreciate."

A merger between First Air and its 1,000-strong workforce and Canadian North's 500-strong workforce might have resulted in major job losses, said a Northern aviation industry consultant, who spoke on condition of anonymity.

First Air plans to shift its focus going forward to strategic initiatives such as its Sakku First Aviation Ltd. joint venture with Sakku Investments Corporation, and its Qikiqtani First Aviation Ltd. joint venture with Qikiqtaaluk Corporation, Ferris said.

First Air, headquartered in Kanata, Ont., has been owned by Makivik Corp. since 1990 -- a corporation mandated to manage the funds of the Nunavik Inuit.

Makivik president, Jobie Tukkiapik, was in board meetings Thursday and not available to take questions from the media.

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