The federal government has made a $6-million investment in Air North.
The announcement was made today in Whitehorse by Yukon MP Brendan Hanley, on behalf of Dan Vandal, the minister of Northern Affairs, responsible for PrairiesCan and CanNor.
Hanley said the investment “is a repayable contribution to support the company by bringing the modern and more fuel-efficient Boeing 737-800 into the fleet, as well as purchasing tools and spare parts for maintenance and building a new 52,800-square-foot hangar to house the new aircraft.
“Air North continues to be a leader in the airline industry, not just in the North, but in Canada,” said Hanley.
“It’s a company where Yukoners feel ownership, whether through shares or simply as Yukon citizens.”
Such initiatives will help the company stay competitive in the industry by saving on maintenance costs and lowering fuel consumption by 20 per cent per seat, the MP said.
“Airlines connect our communities, transport Yukoners to larger centres, and bring visitors to our territory to experience its breathtaking landscapes, vibrant cultures, and unique attractions,” said Hanley.
He was joined at the announcement by Joe Sparling, Air North’s president and CEO, and company staff.
Sparling mentioned the importance of growing the company’s fleet to continue providing safe and affordable air transportation for Yukoners for many years to come.
The new aircraft will help Air North achieve significant fuel cost savings and meet environmental targets faster, he added.
Extending his gratitude on behalf of the rest of the company, Sparling echoed Hanley’s sentiment that a safe and affordable air network is vitally important to the local economy, making the Yukon a better place to live and work. He said he’s happy the company can help.
Sparling said the funding will be directed toward the construction of the new hangar and the tools for the aircraft, since the aircraft purchase is being financed by the vendor.
Although all the funding has not been drawn, Air North has used part of the money, combined with the company’s equity and two other funding sources, which he described as “a huge piece of the puzzle” for the project.
Ground levelling for the new hangar is taking place.
Sparling hopes to have the hangar’s shell finished by the end of this year.
