July 2009

While there are a myriad of definitions for the concept of ownership of a business, the common threads of all relate to the ultimate and exclusive right to influence or control a company in order to accomplish a particular goal.

As many know already, Canadian North is owned by NorTerra Inc., which is owned equally by the Inuvialuit Development Corporation and Nunasi Corporation. IDC and Nunasi are aboriginal birthright development corporations, with a shared mandate to maximize profits, develop economic prospects and create training and employment opportunities for their respective beneficiaries. But what does this aboriginal ownership mean for Canadian North and is it in any way meaningful for our customers?

Some would argue that our ownership is competitive prices and good service who would give a second thought to the ownership structure? On one level, this is true, perhaps as it relates to non-beneficiaries. But consider another perspective. If the mandate of the owners is taken into consideration and if Canadian North participates in the successful attainment of those objectives, does the company’s ownership not become completely relevant for all of our customers? The answer is yes. That we as an airline have been mandated to develop economic opportunities and create meaningful jobs and careers for beneficiaries and other northerners is purely a function of our ownership. Ensuring continuing and competitive air service to northern communities is also a priority (witness the pull out of service from Montreal and Ottawa to Iqaluit by Canadian Airlines in 1995 for example). If we were a publicly traded company (like Air Canada or Westjet) our owners would have only one mandate - to maximize profits. Furthermore, little or none of those profits would find their way into the hands of northerners.

So we believe the decision that led IDC and Nunasi to acquire Canadian North was visionary and well intentioned for their beneficiaries as well as a boon to the northern economy as a whole. And as northerners travel to commemorate Nunavut Day, the 75th Anniversary of Yellowknife and share in other northern celebrations it bears remembering that the ownership of Canadian North is not only about an investment in a business for financial gain. It has also ensured a safe and reliable air transportation system focused on the North, designed to provide Northerners with an essential transportation link long into the future. It is about giving control over a critical piece of transportation infrastructure to those who are most directly impacted by it.

Travel well.
Tracy Medve
President, Canadian North

President's Message Archives

• January/February 2010
• December 2009
• October/November 2009
• September 2009
• July 2009
• June 2009
• April/May 2009
• March 2009
• January/February 2009
• December 2008
• October/November 2008
• September 2008
• July 2008
• May/June 2008
• April 2008
• March 2008
• October 2007