Bearskin Airlines, one of the elite commercial airlines of northwestern Ontario, has signed a letter of intent to sell its assets and operations to Exchange Income Corporation (EIC).

The acquisition is valued at $32.5 million with 10 per cent of the purchase price to be paid through the issuance of Exchange Income Corporation common shares and the balance will be financed using EIC’s senior credit facility.

“We’re shooting for December 1 as the final sign-off date and handover,” says Harvey Friesen, President of Bearskin.

Bearskin owners Harvey and Cliff Friesen, will continue on in their current roles of president and vice-president respectively. Harvey Friesen states that the current executive, and staff will remain in their positions following the closure of the deal.

“I don’t think any customers or any employees will see any change whatsoever,” says Harvey Friesen.

The recent acquisition of the Minnesota route may be delayed because of application processes being put on hold due to license transfers.  Friesen says he hopes to be in place with the Minnesota route by winter.

When asked what prompted the decision to sell the company, Friesen replied, “We’re getting older so retirement is down the road in the foreseeable future, and we felt this is one of the best ways we could make an arrangement and still continue with the company and the operation in a strong, positive manner.”

New owners, Manitoba-based EIC are the existing owners of Keewatin Air, Calm Air International and Perimeter Aviation.

“I have known these gentlemen for some time, and I have a lot of respect for them,” says Friesen.  “They are easy to deal with, they’re true to their word and so we see good things happening.”

Bearskin Airlines generated $47 million in revenue in 2009 and offers more than 100 scheduled flights daily to 17 destinations.  The company owns and operates 14 Fairchild Metro aircraft, each with a capacity for 19 passengers.

“The acquisition of the business of Bearskin Airlines will help to accelerate the next phase of our growth and is strategic on a number of levels,” said Mr. Mike Pyle, President and CEO of Exchange Income Corporation. “Most notably, it allows our Aviation segment to expand its operations into select markets in north- western Ontario that are generally under-served, including Thunder Bay, Sioux Lookout, Kenora, and Dryden. Equally important, it complements a number of our existing routes in Manitoba, providing opportunities for increased synergies and efficiencies for all of our Aviation segment subsidiaries. We look forward to welcoming Bearskin staff into our operations and providing continued quality, reliable service to customers across local communities in northern Manitoba and Ontario.”