Wings Magazine

Features Operations
Northern View

Tourism demand has slackened and prices for insurance and fuel have risen.


October 2, 2007
By Raymond J. Kaduck

Topics

The remoteness of northern aviation has not granted airlines immunity
from the same pressures experienced in the rest of North America.
Tourism demand has slackened and prices for insurance and fuel have
risen. But in some respects, the north is different. Aviation is a
mainstay here. The lack of an extensive all-weather road system and
highly seasonal marine operations mean that most transport demand
cannot be diverted to other modes.

While
operators continue to deal with cost pressures, there is some comfort
in the nature of their business. In some areas of the north, business
is even growing. Mining exploration continues to be strong in the
Mackenzie Valley and the central Arctic. New diamond mines are coming
into production. Japanese winter tourism, even though it is down,
continues to provide welcome business during the slow season.

The
potential for a Mackenzie Valley pipeline has operators very excited.
Yellowknife is booming, with residential and office space selling at a
premium. The local scheduled fixedwing services have been doing fairly
well on the revenue side, but the events of the last few years don’t
engender strong enthusiasm. The concern is costs.

Advertisment