EIC Acquires Canadian North to Broaden Arctic Reach
Exchange Income Corporation (EIC), an aviation and manufacturing holding, has signed a binding agreement to acquire Bradley Air Services, operating as Canadian North, for CAD205 million (approximately USD144 million). The acquisition is part of EIC’s strategic expansion into northern markets and will broaden its footprint into the Northwest Territories—a region where the company currently has no presence.
Canadian North, based in Yellowknife (5T), is a key provider of aviation services in remote northern Canada. With this transaction, EIC is set to strengthen its position as a major player in the region. However, the deal excludes a single route; operations on the Montréal Trudeau to Kuujjuaq service will be transferred to Air Inuit, as confirmed by Makivvik, an Inuit land claims organization, and the Inuvialuit Development Corporation.
EIC’s chief executive, Mike Pyle, expressed his enthusiasm about the acquisition, stating, “We love the North and have become a leading operator in this unique region over many years. Canadian North is a major provider of services in markets that we don’t currently serve, and it will be a natural fit with our other northern air operators.” Pyle’s comments underscore the long-term commitment EIC has made in northern aviation, building on previous acquisitions such as Perimeter Aviation. His statement also highlights the strategic importance of Canadian North’s operations, which will complement EIC’s portfolio and enhance its service offerings across remote regions.
The transaction will be financed through EIC’s existing credit facility of CAD195 million (USD137 million), complemented by newly issued shares totaling CAD10 million (USD7 million). The deal is subject to customary conditions and is expected to close in 2025.
Canadian North operates a diverse fleet of 33 aircraft, including models such as ATR42s, ATR72s, Boeing 737s, and various configurations of the Boeing 737 family. This fleet supports a mix of scheduled flights—which account for roughly two-thirds of the airline’s revenue—and on-demand charters. The carrier serves communities in Nunavut and the Northwest Territories on a scheduled basis, while providing charter services in Alberta and British Columbia primarily out of its Ottawa International and Edmonton International bases. In addition, Canadian North owns hangars at key airports, including Iqaluit, Yellowknife, Calgary, Edmonton, and Ottawa, ensuring robust operational infrastructure in the region.
Makivvik emphasized that the sale will not affect Canadian North’s day-to-day operations. The only change will be the transfer of the Montréal Trudeau to Kuujjuaq route to Air Inuit, which is scheduled to take effect on October 1, 2025.
EIC’s acquisition of Canadian North is expected to significantly enhance its presence in northern aviation—a market that has unique operational challenges and growth opportunities. This move aligns with EIC’s broader strategy to diversify its airline portfolio, which already includes notable carriers such as Calm Air, Perimeter Aviation, Carson Air, Keewatin Air, and PAL Airlines (Canada), as well as the aircraft lessor Regional One.
With this acquisition, EIC not only expands its operational footprint but also reinforces its commitment to serving remote regions with reliable and efficient air services. As the deal moves toward completion, industry observers will be watching closely to see how this strategic integration will reshape the competitive landscape in northern Canadian aviation.
Related News: https://suspicious-zhukovsky.67-21-117-18.plesk.page/category/air-travel-business/airline-finance/
Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com