The Government of Nunavut has decided not to exercise its option to acquire a minority stake in Canadian North, concluding it can deliver the air services Nunavummiut need without taking an equity position in the carrier.
Decision ends year-long review
The choice finishes a year-long review of an option that was negotiated when the territory signed a 10-year Commercial Airline Travel Services Agreement with Exchange Income Corp., the Winnipeg-based parent company that purchased Canadian North in February 2025.
In its announcement, the government said providing "reliable, affordable, transparent, and sustainable air services" can be achieved through other measures rather than by buying shares in the airline. The decision does not change the existing 10-year contract, which remains in force.
"This speaks to the trust the Government of Nunavut has in EIC to deliver this essential service to their constituents," the company said in a statement.
What the agreement covers
The 10-year arrangement continues to govern several essential travel services used across the territory:
- Government-funded medical travel
- Family services travel
- Duty travel
- Freight services throughout Nunavut
| Item | Notes |
|---|---|
| Length of agreement | 10 years (unchanged) |
| Parties | Government of Nunavut and Exchange Income Corp. (owner of Canadian North) |
Next steps and context
Officials say the government will continue to work with Exchange Income Corp. to improve aviation services in the territory. The option to purchase was available to the territory for one year after the sale of Canadian North to EIC, and the GN used that period to assess whether an ownership stake would better secure long-term transportation objectives.
Premier John Main did not comment on the decision, and the minister responsible for transportation was unavailable at the time of the announcement. Exchange Income Corp.'s purchase of Canadian North from Makivvik Corp. and Inuvialuit Regional Corporation in February 2025 gave rise to the option that the territory reviewed during the past year.
The decision is likely to interest residents who rely on scheduled flights for medical appointments, family visits and the shipment of goods. The government frames its choice as an affirmation that contractual and regulatory tools can provide the necessary safeguards and reliability for air services without taking an ownership role.
Further details about how the territory intends to achieve the stated goals — such as specific service improvements or oversight mechanisms — were not included in the announcement.
