September 2009: Canadian North Announces Changes to Service

CANADIAN NORTH ANNOUNCES CHANGES TO SERVICE
Airline to focus on profitability, northern service mandate

Yellowknife, NT                                                                                    For release Thursday, September 24.09

In response to an ongoing struggling economy, an unprecedented surplus of seats on southern routes and underperformance on others, Canadian North is taking proactive steps to sharpen the Airline’s focus on its founding mandate of serving northern transportation needs while ensuring a profit for its shareholders.

According to Canadian North’s President Tracy Medve, “These are demanding times and we are taking the steps necessary to address these challenges in line with our mandate to provide essential air services to the people and communities of the North. That being said, we can no longer justify competing at current levels on routes characterized by an oversupply of seats and a price structure that compromises our commitment in other areas. Neither can we continue to provide service to areas that have not met our market expectations.”

Changes to Canadian North’s service include the cancellation of scheduled flights to Hay River, effective October 25, 2009 and to Calgary effective October 10, 2009. Some adjustments to Edmonton/Yellowknife scheduled passengerservice will also take effect October 25, 2009.

All customers impacted by the cancellation or change of service will be reaccommodated or have their tickets refunded. Any customer queries concerning changes can be directed to the Canadian North call centre at 1-800-661-1505 or their travel agent.

Operational and administrative staff reductions will be made in Yellowknife; Hay
River; Calgary and Edmonton.

The current schedule adjustments will ensure the Airline’s continued growth and profitability with the least possible compromise to the services it provides. These changes will allow for a strategic redeployment of aircraft assets to take advantage of other market opportunities.

About Canadian North
Canadian North is a major provider of scheduled passenger; cargo and charter service throughout the north. Canadian North is a member of the NorTerra Group of Companies whose parent corporation, NorTerra Inc., is owned equally by Nunasi Corporation representing the Inuit of Nunavut and the Inuvialuit Development Corporation representing the Inuvialuit of the Western Arctic.

For further information contact:
Tracy Medve
President
Canadian North Airlines
300, 5201-50th Avenue
Yellowknife, NWT
Tel: 867-669-4005
Cell: (403) 680-6491
Fax:(867) 669-4040