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First Air is a subsidiary of Makivik Corporation, founded in 1975 to administer the funds paid to the Inuit of Northern Quebec under the Convention of the James Bay and Northern Quebec Agreement.
For its part , Canadian North is a subsidiary of NorTerra , which belongs to the Inuvialuit Development Corporation . This corporation representing the Inuit of the Western Arctic .
" A merger would improve the sustainability of these important Inuit Aboriginal businesses and also create a better air service and new opportunities for economic development across the North," argued the two companies through a press release .
They stated that the services remain independent and unchanged during the negotiations and phases of regulatory review , a process that could take several months.
The two companies did not want to discuss the effect of such a merger on prices , currently very high . However, they argued that the merger will not result in job losses.
"Overall , we expect that the new airline is greater than the sum of its parts, and create employment opportunities in the long term," they have argued in a new website dedicated to this initiative.
First Air employs nearly 1,000 people. With a fleet of 23 aircraft , it connects Montreal , Ottawa, Winnipeg , Edmonton and thirty northern communities.