The health of the Canadian North is ailing, as airlines in Canada struggle to stay afloat amidst plummeting demand and increased operational costs. Canadian North, in particular, has been severely affected by the Federal government’s policies, and the future appears gloomy for the company.
Canada’s only airline struggling
Despite being one of the country’s largest airlines, Canadian North is currently facing financial trouble and is losing money. Many people may be surprised by this, as they expect the airline to be making millions of dollars given its significant role in the sector. However, the reality is the exact opposite.
During his keynote speech on February 10th, Aatami, the president of Makivvik Corp., revealed that Canadian North is losing millions due to a variety of issues, including COVID-19 travel restrictions, rising fuel prices, and federal limitations related to the 2019 merger of Canadian North and First Air. He also mentioned that the airline is seeking support from the Government of Canada to revisit the conditions that were imposed upon the merger. However, the government’s response has been lackluster, leaving the future of the airline uncertain.
Canadian North is jointly owned by Makivvik and the Inuvialuit Development Corp., and both companies are actively looking for government assistance. When the merger of Canadian North and First Air was approved in 2019, there were terms and conditions that came with it, including limitations on price increases for passenger travel and cargo deliveries, as well as a seven-year ban on any schedule changes. These conditions have challenged the airline’s operating costs, and it remains unclear whether Canadian North is making a profit or losing money.
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As air travel continues to play a significant role in our contemporary society, it is crucial for the government to recognize the aviation industry’s importance and support struggling airlines. Air travel has transformed the way we live, work, and play, enabling us to interact with people and places that would otherwise be inaccessible. In the meantime, the future of Canadian North hangs in the balance as it attempts to weather the storm and emerge stronger on the other side.
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