Canada News
Nunavut enters into new 10-year agreement for air transportation services
A Canadian North plane in the community of Cambridge Bay in Canada’s Arctic territory of Nunavut. (Eilis Quinn/Eye on the Arctic)
Agreement with Bradley Air Services covers things such as medical travel, duty travel and cargo
The Government of Nunavut has entered into a 10-year agreement with Bradley Air Services — which operates as Canadian North — to cover various air transportation services, such as duty travel, medical travel and cargo.
It also introduces “specific parameters” around family services travel that weren’t in place in prior contracts, according to the government.
“In Nunavut, air travel is a lifeline – it’s our highway,” said Nunavut Premier P.
J. Akeeagok in a statement. “It connects our families, delivers essential goods and services, and keeps our communities strong. Reliable air service is the backbone of our territory’s social and economic wellbeing, and it’s vital to ensuring equity and opportunity for all Nunavummiut.
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According to the territorial government, the cost of the agreement will depend on the amount of travel for the various services.
“The agreement details base prices for GN [Government of Nunavut] contracted air fares and freight with escalation measures for factors such as fuel, inflation and regulatory changes,” reads a news release from the territory.
The new agreement, which came into effect on July 15, consolidates air services for the territory’s three regions under a single contract, as Canadian North subcontracts services in the Kivalliq region to Calm Air.
The contract also includes additional provisions “for monitoring and managing airline performance and clarity on fare attributes for passengers travelling on GN contract fares.”
It also carries an option for the Nunavut government to purchase an equity interest in Bradley Air Services.
Earlier this year, the airline was sold to the Winnipeg-based Exchange Income Corporation, which owns several other regional airlines.
The Makivvik Corporation and the Inuvialuit Development Corporation, the previous owners of Canadian North, announced the sale in February for the sum of $205 million. The Competition Bureau of Canada formally approved the sale earlier this month.
This article is republished from RCI.
