Big moves for First Air
Fleet changes mean more efficiencies, but don't expect lower prices
Karen K. Ho
Northern News Services
Monday, March 30, 2015
IQALUIT
Iqaluit's infamous sealift doesn't just deliver supplies to residents, it has also caused First Air to suffer higher energy prices despite the recent crash in crude.
One of First Air's Boeing 737 jet. The company recently announced new routes and a revitalization program that will phase out its Hercules aircraft. - photo courtesy of First Air |
"The fuel that we received last summer was based on very high prices, so we don't benefit from the lower oil prices as much as southern airlines do," vice-president Bert van der Stege told News/North. "We are still facing a quite high (price) of fuel for our Northern station."
Since the majority of First Air's operations are based in areas of Canada's North with limited to no road access, such as Rankin Inlet, the company is often stuck in a financial bind when it comes to energy costs, noted van der Stege.
"A lot of people ask me if we hedge fuel," he said. "We do, don't get me wrong, but (the) majority of our fuel is already hedged because of the fixed price once a year."
Still, the inter-territorial aviation company considers Nunavut's capital city to be one of its largest bases. It also serves 22 other locations in the territory as part of its coverage.
With the dropping oil prices, people were expecting First Air to withdraw services rather than expand, said van der Stege. And while First Air's most recent announcement was three new routes between Edmonton and Yellowknife, the First Air executive said the company does plan to expand in Nunavut through its upcoming acquisition of up to 10 new aircraft. "We've received board approval to invest heavily in the expansion of the airline," van der Stege said. "That will mean we need more staff as well."
Earlier this year, the First Air executive told News/North the company was in the process of hiring 28 additional staff members. However, with the purchase of the planned Boeing 737s and ATRs, van der Stege estimated approximately 50 people will also need to be hired per aircraft. The new jobs will be split across its bases, including its major one at Iqaluit Airport, said van der Stege.
More recently, both of First Air's Hercules C130 freighter aircraft were sold due to high cost of operation and low demand. According to Iqaluit-based spokesperson Anubha Momin, operations are scheduled to conclude at the end of April. Some pilots have already accepted new positions flying the company's other planes.
