SOMBA K'E/YELLOWKNIFE
Canadian North is officially unshackled from Northern Transportation Company Limited (NTCL) debt.

The Inuvialuit Development Corporation (IDC) announced Feb. 24 that ownership of the airline had been transferred directly to the IDC - a company wholly owned by Inuvialuit beneficiaries. Another company, Weldco-Beales Manufacturing, was also transferred to the IDC.

Previously, all three companies had been owned by Norterra, an arm of the Inuvik-based IDC. But Norterra wracked up between $130 and $140 million in debt and NTCL wasn't able to cover its share, leaving the financial burden hanging over the heads of Canadian North and Weldco-Beales, a heavy duty equipment manufacturer with offices in Edmonton, B.C. and Ontario.

Canadian North flies to 19 communities across the North with close to 25,000 flights a year, many of them connecting through Yellowknife.

On Dec. 16, the territorial government purchased NTCL assets, including the Hay River shipyard, ships and barges for $7.5 million to ensure barge traffic continued to flow to northern communities on NTCL's supply route.

Combined with earlier asset sales, that brought NTCL's repayment of debt up to $13.3 million, not enough to cover its debts. This problem led to concerns that the remainder of the debt would put the spotlight on other Norterra subsidiaries, including Canadian North.

IDC vice-president Mark Fleming declined to comment but stated in a news release that by taking over ownership of Canadian North and Weldco-Beales Manufacturing directly, both companies are now free from any external debt.

"This transaction enables IDC and its subsidiary organizations, Canadian North and Weldco-Beales Manufacturing, to move forward with a clear path to growth and continued profitability," stated Fleming.

IDC will maintain "close and supportive ties" with both companies, and ensure they have access to the resources to continue to operate.

Canadian North "will continue to grow and evolve for the benefit of Northerners," stated Kelly Lewis, communications manager for the airline in an e-mail to Yellowknifer.

"The exceptional support we receive from our Inuvialuit ownership has enabled us to improve our schedule and upgrade our service with newer, more comfortable aircraft, while maintaining safe and sustainable operations," stated Lewis.

"The changes that IDC has announced ensure that Canadian North will continue to grow and evolve for the benefit of Northerners."

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