First Air / Canadian North Merger ??

[Sidebar]

http://www.newswire.ca/en/story/1338093 ... iscussions

EDMONTON, AB and KUUJJUAQ, QC, April 11, 2014 /CNW/ - Makivik Corporation and NorTerra Inc., respectively the shareholders of First Air and Canadian North, have agreed to hold discussions leading to the merger of their operations consistent with a merger of equals, subject to the successful conclusion of negotiations and regulatory review.

[boxcut]

http://newnorthernairline.com/

[co-joe]

One big happy family?

[frozen solid]

I hope they keep the "Empress" callsign: all that's left of CP Air.

[thirdtimecharm]

I hope they keep the "Empress" callsign: all that's left of CP Air.

It is interesting how both companies have tried to recreate CP Air and Nordair- even down to the old flight numbers and reinvesting in combis when the freight market has basically become valueless.

A good dose of the Westjet model would really be helpful, I think. Some new thinking and new airplanes perhaps.

That being said, hopefully everyone comes out of this ok. Really good people at both airlines who have lived in some pretty constant insecurity for quite a while. Both companies, but I saw at First Air first hand, are only around because a hell of a lot of people have gone far above and beyond the call of duty for a long time.

It will be interesting and what wasn't discussed today is:

1. What happens to Calm Air?
2. Neither First Air nor Canadian North have contracts directly with the Government of Nunavut for medical and staff travel. This is at least 60% of the total passenger volume. The people who do have the contracts, Nunasi, Qikiqtaaluk Corporation and Sakku Investments, were really quiet today.

Stay safe all.

[g5]

It is a nice callsign.

Working together is a logical step. Let's hope they manage to bring out the positives from each company.

[tbaylx]

I hope they keep the "Empress" callsign: all that's left of CP Air.

Its from long before CP air, came from the 1880's canadian pacific ocean liners that all were named "Empress of ----" Hope they keep that history as well.

[frozen solid]

You're right. Of course Canadian Pacific still exists and they've named their only remaining steam train "Empress".

[boxcut]

A good dose of the Westjet model would really be helpful, I think. Some new thinking and new airplanes perhaps.

I'm pretty sure the Westjet model doesn't work for Northern Operations. You can't get 30 minute turns when the CARS agent decides to not show up, and the de-ice truck won't start, and the Flight Attendant is deplaning a drunk passenger, etc etc. Canada's North is basically another country, in many ways when it comes to aviation.

. What happens to Calm Air?

MO is owned by EIC, which also runs Perimeter, Bearskin, Keewaitin, Custom Helos, and most of the shell stations in Manitoba and NW Ontario. They'll be fine I'm sure, they might even benefit slightly, as the Kivalliq flying they do is pretty limited.

[teacher]

With any luck the mergers between airlines will continue and companies can make a little money for a change.

[dhc#]

Are finances the real reason for this coming merger ?

Were both bleeding $$$, or only one ?

Also wonder how the 2 company cultures will handle this change.

[fish4life]

More interesting is from my understanding first air has a much more senior group of pilots so how do you do a merger when some guy sitting right seat at first air has 5 years more time in with the company than one of those direct entry captain hires that c-north hired and only has 1 year of seniority ?

[co-joe]

Yeah merging seniority lists always seems to be a one sided affair. I know a guy at AC that lost 10 years of seniority with the Canadian megrer. Guess it depends who's buying who and who hired when, and a shit tonne of other factos.

[thirdtimecharm]

A good dose of the Westjet model would really be helpful, I think. Some new thinking and new airplanes perhaps.

I'm pretty sure the Westjet model doesn't work for Northern Operations. You can't get 30 minute turns when the CARS agent decides to not show up, and the de-ice truck won't start, and the Flight Attendant is deplaning a drunk passenger, etc etc. Canada's North is basically another country, in many ways when it comes to aviation.

. What happens to Calm Air?

MO is owned by EIC, which also runs Perimeter, Bearskin, Keewaitin, Custom Helos, and most of the shell stations in Manitoba and NW Ontario. They'll be fine I'm sure, they might even benefit slightly, as the Kivalliq flying they do is pretty limited.

MO is a code share partner of 5T. All their Government of Nunavut work was won through 5T last time around. But I think that there is a real opportunity for them to look at Baffin scheds. They have access to facilities in YFB and will likely get a call from a worried GN who does not want to go back to a Monopoly situation.

They also have to realize that Manitoba would be firmly in the sights of a NewNorthernAirline.

As for the Westjet comment- was talking more about running efficient planes to a higher level of utilization. One 35 year old 737-200 doing 4 hours/day doesn't help lower costs much.

[sstocker31]

In my opinion....nothing but good will come out of this for the two companys. There will be employees that suffer along the way from both companys, but the end result will be a much stronger, more diversified and capable organization that can meet the needs of any northern customer.

This should have happened 10 years ago.....

[Spandau]

In my opinion....nothing but good will come out of this for the two companys. There will be employees that suffer along the way from both companys, but the end result will be a much stronger, more diversified and capable organization that can meet the needs of any northern customer.

This should have happened 10 years ago.....

Absolutely. Morale in YZF took one hell of a leap on Friday.

[Panama Jack]

Will they stay niche (Northern & Arctic) or will this be a step before jumping into the Southern and Transborder markets?

[FICU]

Canadian North is already moving into the southern market this summer with scheduled service from Iqaluit through Halifax and St. John's.

[tbaylx]

Canadian North is already moving into the southern market this summer with scheduled service from Iqaluit through Halifax and St. John's.

Not sure YFB to anywhere counts as a southern market. If the original poster meant compete in the scheduled airline bloodbath between major city pairs in southern Canada, i doubt it and sure hope not.

[godsrcrazy]

Be interesting to see if they keep the ATR's or Dash 8s. One would think it would be cost prohibitive to run both.

[tbaylx]

Be interesting to see if they keep the ATR's or Dash 8s. One would think it would be cost prohibitive to run both.

If i was a betting man it'd be buh bye D8's

[thirdtimecharm]

Be interesting to see if they keep the ATR's or Dash 8s. One would think it would be cost prohibitive to run both.

If i was a betting man it'd be buh bye D8's

I think that they will end up Winnipeg based for Manitoba scheduled ops.

[boxcut]

Be interesting to see if they keep the ATR's or Dash 8s. One would think it would be cost prohibitive to run both.

If i was a betting man it'd be buh bye D8's

I think that they will end up Winnipeg based for Manitoba scheduled ops.

Or Oilsands work.

[5T666]

My guess, coming back to YEG to do the work that goes to North Cariboo right now.

If the whole thing actually goes through.

[Chaxterium]

Any idea on a timeline for this? Could it happen next week, or a year or two down the road?