YCB Medivacs

[Diadem]

From Adlair's Wikipedia article:

In August 2011 the Government of Nunavut announced that the medivac contract for the Kitikmeot Region had been given to Air Tindi, along with its partner Arsaniq, owned by Dennis Lyall. Adlair has appealed to the Nunavummi Nangminiqaqtunik Ikajuuti and a decision is expected by 11 October 2011. The decision to dismiss the appeal was made 29 October 2011 and the new released 31 October. Adlair were given an extension on their contract until the end of November 2011.

According to Nunatsiaq Online (http://www.nunatsiaqonline.ca/stories/a ... ts_appeal/) it's being taken over by Aqsaqniq Airways. Does anyone know anything about this company? Is it just a contractor which is chartering out the flying to Tindi? I also heard Borek might be involved, similar to their relationship with Tindi in the Inuvik Region.

[angry inch]

http://www.discoveryair.com/#panel-1

[howzat]

Aqsaqniq Airways, Medic North Nunavut Sign $30 Million Kitikmeot Medevac Contract
Written by DISCOVERY AIR INC.
Tuesday, 06 December 2011
Discovery Air Inc. subsidiary Air Tindi Ltd. is pleased to announce that its majority Inuit-owned partnership Aqsaqniq Airways Ltd. has been selected by the Government of Nunavut to supply Air Ambulance Services in the Kitikmeot Region.

The service will be provided in conjunction with Medic North Nunavut, a majority Inuit-owned partnership between the Kitikmeot Corporation and Advanced Medical Solutions Inc. (formerly Medic North Emergency Services Ltd.). In total the five-year contract is expected to be worth in excess of $30 million.

"With more than 14 years conducting dedicated Medevac service for the Stanton Territorial Health Authority, which represents more than 42,000 hours of successful Medevac flying, this is a part of our business we take great pride in delivering," said Air Tindi President . Parker. "With our partners Medic North Nunavut, we have the expertise to handle a contract of this scale and the dedication to ensure we do so in a way that delivers the maximum benefit to Kitikmeot residents and all Nunavummiut."

As a result of this contract, the partnership group will be establishing an operating location in Cambridge Bay, NU - the regional and administrative hub for the Kitikmeot Region.

"We're extremely pleased to be expanding our Medevac services into the Kitikmeot Region and look forward to being a valued member of the community," said Advanced Medical Solutions President and Chief Executive Officer Sean Ivens. "There is no service in the North that's more critical than conducting air ambulance flights and we are honoured to have been the Government of Nunavut's choice to fill this role together with Aqsaqniq Airways."

A hangar has been constructed and it will be fully operational by December 15. Eventually Aqsaqniq Airways will have a dedicated, medevac purpose-built Learjet 35A based in Cambridge Bay that is equipped to land on and take-off from the gravel runways of the Kitikmeot communities.

"We currently have initiated our service with a King Air 200, but in a matter of weeks we'll upgrade that to a faster, more spacious aircraft while we await the final approval of modifications to the Learjet," said Parker. "We'll have no fewer than eight staff - including medical personnel, aircraft maintenance engineers, pilots, and a Medevac Operations Coordinator - in Cambridge Bay at any given time and we are working with local suppliers and contractors to ensure our presence there delivers the maximum benefit possible to the local, regional and territorial economies."

Together Aqsaqniq Airways and Medic North Nunavut will be making available a total of $40,000 annually in scholarships for students from Cambridge Bay, Kugluktuk, Gjoa Haven, Taloyoak and Kugaaruk who are interested in pursuing careers in aviation or the remote medical services industries.

"We're dedicating ourselves to help build the capacity of the resident workforce in the Kitikmeot region," said Ivens. "Our goal and that of our partner Aqsaqniq Airways is to see Inuit from the region employed in the many stable careers we'll have available in Cambridge Bay through this new contract."

ABOUT AQSAQNIQ AIRWAYS

Pronounced "uk-sung-nik," Aqsaqniq means "northern lights" in Inuktitut. The company is based in Taloyoak and is a federally incorporated, majority Inuit-owned joint venture with a fleet of 21 aircraft ranging in size from 3 to 46 passengers. Aqsaqniq Airways provides aircraft charter and contract air transportation services throughout the Kitikmeot Region with managing partner Air Tindi handling all flight operations. Aqsaqniq Airways offers the opportunity for the regional Inuit ownership group to receive economic benefits as well as training opportunities from the aviation industry, which plays a critical role in Arctic life.

ABOUT MEDIC NORTH NUNAVUT

Medic North Nunavut is a partnership that was initiated in February 2008 between the Kitikmeot Corporation and Advanced Medical Solutions Inc. (formerly Medic North Emergency Services Ltd.) With its headquarters in Yellowknife and offices in Calgary and Edmonton, Advanced Medical Solutions' highly skilled medical teams conduct more than 1,200 Medevac missions annually. It is the industry leader in terms of providing health care personnel, medical equipment, supplies and emergency vehicles to a long list of public and private clients operating throughout Canada. Medic North Nunavut is committed to providing the highest level of patient and client satisfaction, without compromise - the same commitment that has propelled its managing partner Advanced Medical Solutions to its current position in the industry.

ABOUT DISCOVERY AIR AND ITS SUBSIDIARIES Discovery Air Inc. is a Canadian specialty aviation company, operating over 140 aircraft with our 850 team members. We deliver airborne training to the Canadian military; airborne fire services; VFR helicopter operations; fixed-wing air charter services; expediting and logistics support; and a range of maintenance, repair, overhaul, modification, engineering and certification services.

Discovery Air's shares and debentures trade on the Toronto Stock Exchange (Symbols DA.A and DA.DB.A respectively.

[Donald]

Didn't Tindi go back to the GNWT for more $$$ after they were awarded the medevac contract with a lowball bid, the last time about 5-7 yrs ago?? Seems to me it was about the same time that Discovery Air got a 48 month no-interest loan from the same GNWT...

[Meatservo]

I don't understand. If "Aqsaqniq airways" has a fleet of 21 aircraft, how come Air Tindi is handling all flight operations? What are the Aqsaqniq planes and pilots doing? What's going on here? Sounds fishy.

[Rudy]

I don't understand. If "Aqsaqniq airways" has a fleet of 21 aircraft, how come Air Tindi is handling all flight operations? What are the Aqsaqniq planes and pilots doing? What's going on here? Sounds fishy.

It's a joint venture. Tindi brings their 21 aircraft and skilled pilots and staff to operate them. Some Inuit investors bring some cash and their Inuitness. When it comes time to award contracts the government goes 'Oh, lets give it to this Aqsaqniq. It's an Inuit company'.

[YYZSaabGuy]

Didn't Tindi go back to the GNWT for more $$$ after they were awarded the medevac contract with a lowball bid, the last time about 5-7 yrs ago?? Seems to me it was about the same time that Discovery Air got a 48 month no-interest loan from the same GNWT...

Discovery Air's loan from the GNWT was not "no-interest" at all. It has a 10% fixed interest rate, which was hardly a bargain even in the troubled 2009 capital markets.

[The Hammer]

Inuit owned companies get a 21% discount when bidding government work ie they can bid 20.9% higher than a non-inuit owned company and still get the contract.

I have no problem with that principle to keep the money in the north but when they award these contracts to "Inuit" companies like "Aqsaqniq airways" (incorporated in June, 2011) who are nothing more than a front for the Discovery group it is BS. A group of Inuk are getting a small cut to own 51% of this front company. 95% of the $30 million is going into someone's pocket in London, Ontario. Does "Aqsaqniq" own more than a P.O. box or ATCO trailer in Talayoak?

Air Tindi is likely charging outrages rates to provide " Aqsaqniq Airways" with air services or Discovery is charging excessive management fees.

Kenn Borek has been doing this for years as "Uunalik Aviation".

Adlair has been a true Nunavut air service in Cambridge Bay for 28 years with the Laserich family being in the north for 50 years. Air Tindi isn't offering anything better with B200's and a Lear just like Adlair already did. Until Air Tindi actually gets the Lear on-line, they are providing a lower level of service than Adlair did and always will because the LR35 barely can get out of YCB, never mind anywhere else in the region. Adlair's LR25 could go to other communities as well.

Who is a northerner, Paul Laserich or Joe Randall?

[godsrcrazy]

well said Hammer. However i doubt the inuit are getting 5%. If they are getting 5% it will be of profit not total revenue. There is no differnece between this company and every other aboriginal or inuit partnership DA has. They are all just fronts that collect a portion of PROFIT not Revenue. Go into any of DA bases that claim they are Aboriginal / Inuit owned and count the Aboriginal and Inuit full time employees.

For those that think DA is paying thru the nose to the GNWT on a 10% fixed rate loan you a wrong. The only reason they went with the GNWT is every other investment group or Bank wanted a lot more then 10%. I hope you don't think that DA went with the GNWT because they want to line the NWT tax payers pockets. Know lets all sit back and see if the GNWT loan all gets paid including the 10%. I am betting we haven't heard the last of this deal.

[oldncold]

one has to wonder if the stress of losing that contract caused paul lazerich to have a fatal cornary? now that it is official has adler air layed off the 200 crews and lear jet pilots?

[flyinthebug]

Inuit owned companies get a 21% discount when bidding government work ie they can bid 20.9% higher than a non-inuit owned company and still get the contract.

Kenn Borek has been doing this for years as "Uunalik Aviation".

...and in CYEV as Aklak Air. Who then bids contracts under the IDC (Inuvialuit Development Corp name), gets the 20% cushion and VAST majority of revenue goes back to KBAL. The IDC does ok with this set up though, and seemingly has the nicest building in YEV.

[sakism]

Wondering where they are getting a LR35 with a gravel kit since this STC is no longer available, and hasn't been available for quite awhile.

[co-joe]

I don't understand. If "Aqsaqniq airways" has a fleet of 21 aircraft, how come Air Tindi is handling all flight operations? What are the Aqsaqniq planes and pilots doing? What's going on here? Sounds fishy.

Don't you know? The only way to get medevac contracts in the arctic is to have an aboriginal sounding name. Then you can paint cree hieroglyphs on the plane and the locals feel like they own a part of something even if every penny is from the federal government. eg Aklak, and Unaalik.

[YYZSaabGuy]

For those that think DA is paying thru the nose to the GNWT on a 10% fixed rate loan you a wrong. The only reason they went with the GNWT is every other investment group or Bank wanted a lot more then 10%. I hope you don't think that DA went with the GNWT because they want to line the NWT tax payers pockets. Know lets all sit back and see if the GNWT loan all gets paid including the 10%. I am betting we haven't heard the last of this deal.

You were pretty public on this forum in 2009 with similar comments. Not sure what axe you have to grind, and you're obviously fully entitled to your opinion, but a few points you should consider:
1. Discovery Air has significantly improved its operating and financial performance since the GNWT loan was booked. Net income for the 6 months to July 31 was $15.3 million, 2011 results were better than 2010 results, cash flows have improved, and operating cash flow leverage has significantly reduced.
2. Failing to deal with the GNWT on the loan, either by repaying it or renegotiating it, really isn't an option - a default would cross-default to the rest of Discovery Air's debt (at the lenders' option) and risk putting the company out of business. Presumably the Board, management, and employees (including flight crew) would not be interested in seeing that happen. More to the point, given (1) above, there's no good reason at this point to expect it to happen.
3. Discovery Air completed a significant refinancing of other debt over the last several months to reduce cash debt service commitments. This positions the company very nicely to deal with the GNWT loan by its maturity in February 2013.

Discovery Air is a publicly traded company and this stuff is all on the record and readily available with a litle research on either SEDAR or Discovery's website - your option.

[godsrcrazy]

For those that think DA is paying thru the nose to the GNWT on a 10% fixed rate loan you a wrong. The only reason they went with the GNWT is every other investment group or Bank wanted a lot more then 10%. I hope you don't think that DA went with the GNWT because they want to line the NWT tax payers pockets. Know lets all sit back and see if the GNWT loan all gets paid including the 10%. I am betting we haven't heard the last of this deal.

You were pretty public on this forum in 2009 with similar comments. Not sure what axe you have to grind, and you're obviously fully entitled to your opinion, but a few points you should consider:
1. Discovery Air has significantly improved its operating and financial performance since the GNWT loan was booked. Net income for the 6 months to July 31 was $15.3 million, 2011 results were better than 2010 results, cash flows have improved, and operating cash flow leverage has significantly reduced.
2. Failing to deal with the GNWT on the loan, either by repaying it or renegotiating it, really isn't an option - a default would cross-default to the rest of Discovery Air's debt (at the lenders' option) and risk putting the company out of business. Presumably the Board, management, and employees (including flight crew) would not be interested in seeing that happen. More to the point, given (1) above, there's no good reason at this point to expect it to happen.
3. Discovery Air completed a significant refinancing of other debt over the last several months to reduce cash debt service commitments. This positions the company very nicely to deal with the GNWT loan by its maturity in February 2013.

Discovery Air is a publicly traded company and this stuff is all on the record and readily available with a litle research on either SEDAR or Discovery's website - your option.

Just to make one thing clear i have no Axe to grind with Air Tindi. I do have 1 with any Government getting into financing any company. Government is not in the Finance business. For a company that is doing so great their stock certainly has not been proof of that even after the announcement of a 30 million contract. I guess we will see what the results show next week. We could debate this all day. Instead i will wait and see what happens in February of 2013. All i can says i hope the people of Nunavuit make sure DA follows the contract exactly as they are suppose to. I would love to know were their hanger is in YCB that fits the aircraft that are suppose to be based there.

[jspitfire]

I would love to know were their hanger is in YCB that fits the aircraft that are suppose to be based there.

Right beside Adlair's. Just have to put the door on, should be ready for use next week.

[godsrcrazy]

Didn't Tindi go back to the GNWT for more $$$ after they were awarded the medevac contract with a lowball bid, the last time about 5-7 yrs ago?? Seems to me it was about the same time that Discovery Air got a 48 month no-interest loan from the same GNWT...

Donald they would go back for more money as they were the only bidder. Why were they the only bidder you ask. Well from what i was told by companies that looked at bidding the contract the only thing that Stanton did no specify is you had to have AT on the tail. The contract was specifically designed for Air Tindi. Right down to the point that at time of bid you had to supply the serial numbers of the 4 King Air 200 you were bidding with. Prior to any award you had to show the board all 4 Aircraft including Certificate of Registration in your company name. So the only way you could bid the contract is you had to go out and buy 4 aircraft. To bad the Nunavuit government didn't do the same thing for Adlair.

[loopy]

A C560 citation with a gravel kit would be a better ship for that airport than a lear. The time difference on a trip to Yellowknife or Edmonton would not be that much longer and can handle the runway much better.

[YYZSaabGuy]

Just to make one thing clear i have no Axe to grind with Air Tindi. I do have 1 with any Government getting into financing any company. Government is not in the Finance business. For a company that is doing so great their stock certainly has not been proof of that even after the announcement of a 30 million contract. I guess we will see what the results show next week. We could debate this all day. Instead i will wait and see what happens in February of 2013. All i can says i hope the people of Nunavuit make sure DA follows the contract exactly as they are suppose to. I would love to know were their hanger is in YCB that fits the aircraft that are suppose to be based there.

Fair enough - I don't think we're necessarily that far apart philosophically on the issue of government finance although there are arguments to be made in favour of it and in this case I'd be willing to bet it works out well for both sides. I agree that the DA stock price isn't setting any records although don't make the mistake of linking financial performance and prospects with stock market performance - there can frequently be a wide gap over extended periods of time. That's how guys like Warren Buffett make their money.

[godsrcrazy]

Fair enough - I don't think we're necessarily that far apart philosophically on the issue of government finance although there are arguments to be made in favour of it and in this case I'd be willing to bet it works out well for both sides. I agree that the DA stock price isn't setting any records although don't make the mistake of linking financial performance and prospects with stock market performance - there can frequently be a wide gap over extended periods of time. That's how guys like Warren Buffett make their money.

Fair enough but maybe if the Canadian Government would have not Financed Air Canada other airlines like Wardair, Pacific Western/ Canadian would all still be alive. If the GNWT didn't give DA 34 million Adlair and Paul may still be a going concern. As i said financing should be left to the banking institutions. It is kind of amazing that the fund that gave DA 34 Million has been closed and under investigation. To the best of my knowledge this fund has not given any company 1 dime since and the investigation is on going.

A C560 citation with a gravel kit would be a better ship for that airport than a lear. The time difference on a trip to Yellowknife or Edmonton would not be that much longer and can handle the runway much better.

This is the same mentality the Alberta Government has taken with closing the Edmonton Municipal its only a few minutes longer from the International airport to the hospital. The GNWT did the same thing years ago when they first went to tender. They went from using a Falcon 10 at 1.2 hours to Edmonton to using a KIng air 200 at 2.1 hours and even worse on several occasions a King air 90 at over 3.0 hours. It just goes to prove there really is a price on what your life is worth.

[Hiflyer2]

As a fairly high time Lear pilot I would be interested to see how the Lear 35 will work out of a 5000 ft gravel strip. Keep me appraised of the details as they unfold!!!

[godsrcrazy]

If memory serves me correct the only 5,000 foot strip that far north is Cambridge and Resolute bay. If they are planning on using a 35 then does that mean they will be bringing patiants to Cambridge first as the 35 won't get in and out of most strips up there Legally speaking.

[cyeg66]

This is the same mentality the Alberta Government has taken with closing the Edmonton Municipal its only a few minutes longer from the International airport to the hospital. The GNWT did the same thing years ago when they first went to tender. They went from using a Falcon 10 at 1.2 hours to Edmonton to using a KIng air 200 at 2.1 hours and even worse on several occasions a King air 90 at over 3.0 hours. It just goes to prove there really is a price on what your life is worth.

...and I would argue that the mentality supporting the notion that life should be saved "at any cost" is even more erroneous. Because the $$$ comes out of public coffers, then even more so there should be a propensity to save. Your spin job of suggesting that they put patient transfers of equally (dire) importance on a BE90 when a L25/35 (or similar) is available is equally flawed. If statistics are available, how many transfer patients have died aboard King Airs inbound to Edmonton from the North in the last 10 years? Now, from those, how many would have "definitely" been saved by flying them aboard a FA10/20, LJ24/25/35/40/45/55/60, etc? If we find that 1 or 2 people may sadly have died during one of these trips, would that still justify the added price tag of perhaps over 1 billion bucks over that same time span using jets whenever/wherever practicable? For some, it's a tough decision to make, not I. Granted, my generation wasn't over-coddled like today's youth. My point is, there are countless people in obscure locations all over the world that would kill (ironically) to get the air service our northern communities get. As for Edmonton specifically, check back in a little while and you'll see it was by far the right decision.

Sorry guys & gals, rant over, resume normal operations...

[godsrcrazy]

This is the same mentality the Alberta Government has taken with closing the Edmonton Municipal its only a few minutes longer from the International airport to the hospital. The GNWT did the same thing years ago when they first went to tender. They went from using a Falcon 10 at 1.2 hours to Edmonton to using a KIng air 200 at 2.1 hours and even worse on several occasions a King air 90 at over 3.0 hours. It just goes to prove there really is a price on what your life is worth.

...and I would argue that the mentality supporting the notion that life should be saved "at any cost" is even more erroneous. Because the $$$ comes out of public coffers, then even more so there should be a propensity to save. Your spin job of suggesting that they put patient transfers of equally (dire) importance on a BE90 when a L25/35 (or similar) is available is equally flawed. If statistics are available, how many transfer patients have died aboard King Airs inbound to Edmonton from the North in the last 10 years? Now, from those, how many would have "definitely" been saved by flying them aboard a FA10/20, LJ24/25/35/40/45/55/60, etc? If we find that 1 or 2 people may sadly have died during one of these trips, would that still justify the added price tag of perhaps over 1 billion bucks over that same time span using jets whenever/wherever practicable? For some, it's a tough decision to make, not I. Granted, my generation wasn't over-coddled like today's youth. My point is, there are countless people in obscure locations all over the world that would kill (ironically) to get the air service our northern communities get. As for Edmonton specifically, check back in a little while and you'll see it was by far the right decision.

Sorry guys & gals, rant over, resume normal operations...

Well i could also argue your mentality. I suppose it is OK for 1 or 2 people to die if your not related to them. There is a huge difference between mediacal transfer and Medivac. I wonder how many of the aircarft flying use the call sign medical transfer or just their normal call sign. If there is no need to move these people as quickly as possible then maybe they should go back to the way they use to do medical transfer's and save some money. In the old days when there was no panic they use to do medical transfer by booking 9 seats or less on a 737 or main line.

Cyeg66 maybe you can clarify what exactly the intent of putting contracts out for medivac services means. I thought it was about moving patients the fastest way possible. By chartering 1 aircraft to move a patient certainly is not the cheapest way possible.