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Canada's Northern Airlines Enter Merger Discussions

EDMONTON, AB and KUUJJUAQ, QC, April 11, 2014 /CNW/ - Makivik Corporation and NorTerra Inc., respectively the shareholders of First Air and Canadian North, have agreed to hold discussions leading to the merger of their operations consistent with a merger of equals, subject to the successful conclusion of negotiations and regulatory review.

The potential merger is intended to create a single airline entity that builds on the strengths and identities of the two companies. A merger would improve the sustainability of these critical Inuit birthright enterprises and would also create better air services and new economic development opportunities across the north.

Flight operations and services will remain independent and unaffected during the negotiation and regulatory review phases.

Makivik Corporation and NorTerra Inc. will inform the public as discussions progress. The public is invited to visit our website www.newnorthernairline.com for updates throughout these discussions.

About Canadian North
Canadian North and its founding companies (Canadian Airlines, Pacific Western Airlines, Transair, Nordair) has proudly served Canada's North with passenger and cargo services for more than 80 years. Offering scheduled flights to 19 destinations, Canadian North proudly serves the Northwest Territories and Nunavut, via the southern gateways of Edmonton and Ottawa. Canadian North is also the premier provider of fly-in/fly-out charter services for large resource sector clients requiring safe, efficient and economical air transportation. Charter flights are also offered across North America for sports teams, cruise lines and large groups. Canadian North is a subsidiary of NorTerra Inc., which is owned by the Inuvialuit Development Corporation, representing the Inuvialuit of the Western Arctic. For more information please visit www.canadiannorth.com.

About First Air
With a fleet of 23 aircraft including the only two civilian owned and operated Hercules cargo aircraft in Canada, First Air has been connecting the people of the North for over 65 years.

First Air offers scheduled, cargo and charter services to more northern destinations than any other airline. First Air is a wholly-owned subsidiary of Makivik Corporation and has around 1,000 employees, of which more than 450 work and live in the North. For more information please visit www.firstair.ca.

SOURCE Makivik Corporation

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