The merger got a green light from Transport Canada on Wednesday. David Akeeagok, the territory’s minister of economic development and transportation, said on Thursday that the government “intends to monitor the situation very closely.” The territorial government has not said much, other than that it’s feeling cautious, although it did make a submission to Transport Canada during the review process. The government said it will make that document public this fall. (Nunatsiaq News)
Talking point: This is part of a broader trend of consolidation in Canada’s airline industry. In May, Air Canada entered into talks to acquire Montreal-based Air Transat (though earlier in June, another bidder came forward to top that offer). In Nunavut, the government’s primary concern remains keeping air travel accessible and affordable for its citizens. Others share the government’s caution: in February, the Competition Bureau of Canada recommended against the merger, calling it a monopoly and saying that it was likely to result in significantly less competition in passenger travel and cargo transportation. While the terms set out in Transport Canada’s approval seek to address some of those concerns—such as ensuring airfare does not rise beyond increases to operating costs, and preventing any changes to Inuit-specific fares or any reduction in the number of flights to communities—they are only applicable for seven years.