Exchange Industrial Income Fund Announces Acquisition of Keewatin Air Limited
WINNIPEG, MB, April 20 /CNW/ - Exchange Industrial Income Fund (EIF.UN:
TSX Venture) ("EIIF" or the "Fund") is pleased to announce that it has entered
into an agreement to acquire 100% of the shares of Keewatin Air Limited
("Keewatin Air") from its founders Bob May and Judy Saxby. Keewatin Air
operates from bases in Winnipeg and Rankin Inlet providing medevac and charter
services as well as a scheduled airline. Keewatin Air operates the medevac
business under the trade name "Nunavut Lifeline", and its scheduled airline as
"Kivalliq Air".
Duncan Jessiman the Chairman of EIIF stated "We are very excited to
announce the acquisition of Keewatin Air. Bob and Judy have built a successful
airline in the north. They are an industry leader in providing medical
evacuation services in a very challenging environment. There are very
significant parallels between Keewatin Air and Perimeter Aviation Ltd.
("Perimeter") our first acquisition. This acquisition will dramatically expand
the geographic area serviced while providing significant operating synergies
with Perimeter."
Bob May, the President of Keewatin Air stated "Selling to EIIF is a
natural progression for our company. We have followed the profitability,
growth and access to capital experienced by Perimeter since the deal with EIIF
was completed in May of last year. We are very proud of what we have built
over the last 35 years, and the sale of the company to EIIF will enable the
company to embark on the next stage of growth. We will be maintaining a
significant equity position in the Fund and will be staying on to manage the
Keewatin Air operations."
Mr. Bill Wehrle, the President and founder of Perimeter stated "Keewatin
Air is a very respected member of the aviation community. I have known Bob and
Judy for decades, and the acquisition of their company can only strengthen the
results of EIIF".
Keewatin Air operates a fleet of twin engine Beechcraft King Air Aircraft
used predominantly in the medevac business and single engine Pilatus planes
used in the scheduled and charter operations. The company has annual revenues
of approximately $15 million.
EIIF intends to continue to operate the Keewatin Air operations under
their existing brand names. Mike Pyle the President of EIIF stated "There is
considerable equity in Keewatin Air brand names and we have no intention of
changing them. The fleet of aircraft at Keewatin Air is different than that at
Perimeter. We intend to move towards a common platform of twin engine aircraft
in the scheduled airline operation over the next 24 months."
The acquisition will be funded with a combination of secured bank debt
along with the proceeds of a supplemental offering of fund units and
debentures. The acquisition is expected to close in early June and is subject
to the completion of due diligence by EIIF.
The TSX Venture Exchange has neither approved nor disapproved the
contents of this press release.
For further information: Mike Pyle, President, Exchange Industrial
Income Fund, 509 - 167 Lombard Avenue, Winnipeg, MB R3B 0V3, Phone:
(204) 982-1850, Fax: (204) 982-1855, E-mail: mpyle@eig.ca
Perimeter plus Keewatin minus skyward = monster
Moderators: North Shore, sky's the limit, sepia, Sulako, lilfssister, I WAS Birddog
Now this really can't surprise anybody i have a bunch of friends who work for the company and there has been rumours of this very thing happening for at least 2 years that i am aware of. I say goodd for them thats what the airline industry is about is seeing an opportunityand taking it. Ask the people on the reserves what the think of "the big green monster" after skyward closed its doors. They would have had a lot more trouble with getting food and other sundry items. Not to mention getting out from time to time. A lot of people on here don't seem to like perimeter but they are a company just trying to do the best they can and i applaude them. Sound business plan + effective aircraft + employees happiness (including capt snj who bleeds green. lol jk buddy we all know you are an other worldly being who doesn't bleed) = succesful company.
Perimeter should be careful. Keewatin has three years left on their medivac contract. If in the future the contract is awarded to another carrier (e.g. Borek, Air Baffin etc.) Keewatin will have no value. In other words if Keewatin looses the contract, EIIF stock will lower.
Yes, that is true. By that time EIG will have as strong a presence in the Kivilliq region as Calm Air. There will be Metro III's everywhere. Remember Bob May and Bill Wherle are still involved to see that there plans for expansion are seen through, only this time the financial burden to them is significantly less. There is alyways the possibility of larger equipment on the long hauls. Time will tell. The smart thing about this "expansion" of EIG is that nothing changes, except for operating capital for the companies involved. The routes are proven, the management is in place and the aircraft are already full. Either way, it's a good time to be green.
giligan
giligan
You can have as strong a presence in the area as you like. Contracts go mostly to the lowest bidder. If Keewatin didn’t get awarded the contract several years ago, there would be no Keewatin right now.
On another note Keewatin’s leases on the PC’12s are up in August and the have no plans on renewing. The PC12 captain’s have will be filling the left seat positions on Perimeter’s Metro III’s that will be replacing them, because the will have to be flown by captains with arctic experience.
Good time to be green….think again…
On another note Keewatin’s leases on the PC’12s are up in August and the have no plans on renewing. The PC12 captain’s have will be filling the left seat positions on Perimeter’s Metro III’s that will be replacing them, because the will have to be flown by captains with arctic experience.
Good time to be green….think again…
Guest 295, This is not an arguement for here. Don't worry though, Perimeter's Pilots association will be in negotiations with Keewatin Pilots, Perimeter and Keewatin's management to sort this out. I sincerely hope there is no pissing match on AVCANADA about this. Hopefully something positive for most people involved can be worked out. For now, there will be 2 seperate companies. It is my understanding that the PC12's may be flown untill Metro's can be purchased to fill the void. By the way, PAG's pilot contract states that any aircraft flown under Perimeter's OC will be flown by Perimeter CPA members. It may be obvious which side I'm coming from but, I look forward to the growth and new routes that will be flown by BOTH pilot groups. I hope that eventually there are no sides. I would like to welcome all Keewatin employees into the EIG group. The new ownership has been a positive experience for Perimeter this past year. All of the experience I've had with Keewatin has been first class. I hope all involved see this as a positive thing. Welcome.
giligan
giligan
I'm also going to start the rumor...6 green SAABS by 2008 
Just kidding.
On a serious note, I'm assuming that SKG had bid for the Medevac contract and obviously didn't get it. It is also my understanding that they were in the habit of underbidding the competition to gain market share. There are numerous examples of this in the past in Manitoba and more recently Ontario. I was under the impression that Skyward was the lowest bidder for that contract and in turn cited political reasons for not getting the contract. Is there any truth to this?
giligan
Just kidding.
On a serious note, I'm assuming that SKG had bid for the Medevac contract and obviously didn't get it. It is also my understanding that they were in the habit of underbidding the competition to gain market share. There are numerous examples of this in the past in Manitoba and more recently Ontario. I was under the impression that Skyward was the lowest bidder for that contract and in turn cited political reasons for not getting the contract. Is there any truth to this?
giligan
You guys are talking about the pilots but what about the maintenance, yikes that will be a lot of A/C to keep up. I don't wish that on anybody, it will be a large fleet to manage for Perimeter. Hope all goes well for them.
There we were 2 against a 1000, toughst 2 basturds we came across.
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wrenchturner
- Rank 4
- Posts: 231
- Joined: Mon Apr 11, 2005 5:05 pm
We just had our meeting today and I'm pleased to be working for a company that is part of the EIIF group.
Keewatin/Kivalliq/Nunavut Lifeline will be run as is and will not lose it's identity. Management is not changing, nobody is losing their job, and the most likely changes we will see first are using the former Skyward hangar in YRT and having a Metro IIIH running our sked north-south in our colors.
The pilots will have the option of looking into joining the PAG CPA and employees will have the option of investing in the EIIF share plan.
BTW... the medevac contract was awarded to Keewatin Air based on level of service and quality of care which they have continually demonstrated over the past decades.
This is going to make both Perimeter and Keewatin Air stronger and allow for more growth in the future.
Keewatin/Kivalliq/Nunavut Lifeline will be run as is and will not lose it's identity. Management is not changing, nobody is losing their job, and the most likely changes we will see first are using the former Skyward hangar in YRT and having a Metro IIIH running our sked north-south in our colors.
The pilots will have the option of looking into joining the PAG CPA and employees will have the option of investing in the EIIF share plan.
BTW... the medevac contract was awarded to Keewatin Air based on level of service and quality of care which they have continually demonstrated over the past decades.
This is going to make both Perimeter and Keewatin Air stronger and allow for more growth in the future.
This is getting off topic now but...JBI wrote:
You discuss the service to the NU gov't. What about the gov't's service to its citizens? Delaying them health service just to spite a company was NOT providing proper service.
I don't think you have the facts on what you've been talking about but Keewatin had a plane going down for new avionics and paint and needed a replacement machine for the short term so they based a Perimeter plane in YRT. If Keewatin was called to do a medevac and the Perimeter crew in YRT was avaible then it was used whether Skyward had a plane in YRT or not.
Keewatin has used Skyward many times for medevacs when their planes were all busy and if you think the NU gov't would have a Perimeter plane sent up from YTH to do a medevac while a Skyward plane was in YRT you are mistaken. Referal made the call on what company was to be used and they called Skyward first, many times, while the Keewatin crews were fresh.
Don't forget that Skyward tried to take the market from Keewatin in Keewatin's territory as they have tried in MB and Ontario to other companies which is what helped lead to their demise. Had Keewatin stuck a plane in YTH and demanded some of Skywards business do you think they would have been treated fairly?
As for the equipment comment... Keewatin can transport any type of patient where as Skyward was restricted by the MB gov't so Keewatin's medical program is at the highest level.
So with all the lack of competition, and basically a Perimeter monopoly, on the market in northern Manitoba how are the air fares going out of YTH these days.....Perimeter can pretty much charge whatever they want now, I would imagine, and have no fear of losing any customers.
Perimeter has always wanted all of the business in Manitoba. As I stated before, BW was just waiting for the right time. Aside from what many people on this forum may think, the people of the Northern communities serviced by airlines like Perimeter are very smart. They know how much it should cost to fly to Oxford House. They also are very familliar with being screwed by the "southern folk".
Perimeter was handed a gift in Thompson, they are too smart to just double the price over night just because they can. If that were to happen, the clientelle (did I spell that right) would tollerate it for a while, untill the next operator buys 1900's and cuts Perimeter's price and then jump ship. Perimeter doesn't have to raise the price to make the bottom line, they are already profitable. Those Green Metro's are built to make money, laugh at them if you want but they are a proven sucess. I'm no accountant but from what I understand, Pag can almost operate them on Par with a Navajo due mainly to fleet comonality, in house maintenance/overhaul and a huge supply of parts. I realize that may be a stretch but when compared to a 1900 there is no competition. The operating costs are probably half, The Metros purchase price was 6 months lease payments on the Beech and they have 17 of them.
Perimeter set the ticket price to Norway House in 1979. A New Operator comes in with a new (looking) 1900D, if they want any market share they have to beat Perimeter's price. They do and Perimeter matches it. This goes on untill Perimeter won't lower their price any more and Ministic hauls more passengers. Then they go tits up and Perimeter raises their price back up to the previous level. Then Skyward pulls SKT out of the dessert and the whole thing starts again.
Perimeter has been around in the past and they will be around in the future. Thats why people travel with them. People love to knock them but if you want to go to Norway House, Perimeter goes there 3 times a day...since 1979 and you even get a free set of earplugs.
giligan
ps, I'm not knocking getting planes from the dessert, people in glass houses shouldn't throw stones
Perimeter was handed a gift in Thompson, they are too smart to just double the price over night just because they can. If that were to happen, the clientelle (did I spell that right) would tollerate it for a while, untill the next operator buys 1900's and cuts Perimeter's price and then jump ship. Perimeter doesn't have to raise the price to make the bottom line, they are already profitable. Those Green Metro's are built to make money, laugh at them if you want but they are a proven sucess. I'm no accountant but from what I understand, Pag can almost operate them on Par with a Navajo due mainly to fleet comonality, in house maintenance/overhaul and a huge supply of parts. I realize that may be a stretch but when compared to a 1900 there is no competition. The operating costs are probably half, The Metros purchase price was 6 months lease payments on the Beech and they have 17 of them.
Perimeter set the ticket price to Norway House in 1979. A New Operator comes in with a new (looking) 1900D, if they want any market share they have to beat Perimeter's price. They do and Perimeter matches it. This goes on untill Perimeter won't lower their price any more and Ministic hauls more passengers. Then they go tits up and Perimeter raises their price back up to the previous level. Then Skyward pulls SKT out of the dessert and the whole thing starts again.
Perimeter has been around in the past and they will be around in the future. Thats why people travel with them. People love to knock them but if you want to go to Norway House, Perimeter goes there 3 times a day...since 1979 and you even get a free set of earplugs.
giligan
ps, I'm not knocking getting planes from the dessert, people in glass houses shouldn't throw stones
Actually Skyward was asked by the band in Norway House to start a sked service right after Ministic "went tits up." They leased the ugly duckling TLF directly from the band to run the sked long before SKT ever showed up.giligan wrote:A New Operator comes in with a new (looking) 1900D, if they want any market share they have to beat Perimeter's price. They do and Perimeter matches it. This goes on untill Perimeter won't lower their price any more and Ministic hauls more passengers. Then they go tits up and Perimeter raises their price back up to the previous level. Then Skyward pulls SKT out of the dessert and the whole thing starts again.
One should check into what other things Mr. Jessiman is involved in financially and then a big picture of what will probably take place in the future starts to take shape. Amongst other major investments, he is also a major part of the ownership in another transportation "firm" that has made the list for "The 50 Best Managed Companies in Canada" three times.
"Inside info?" I happen to live in Winnipeg and have for a long time. Any dummie that has lived here any length of time knows the name Jessiman and what all that family name has been involved with in this town for a long time. I'll help with a "primer" and you can look up the rest for yourself........ever hear of Bison Courier Service, later to be known as Bison Transport of today. Wander down to the Company's Office (where you go to register a company name) at the Wordsworth Building in Winnipeg and you can find out who owns what unless it's a numbered company. I suppose some would call that "Deep Throat information", but I don't understand their reasoning.
So Perimeter bought another company ehh?? Buying more planes I imagine?? And, if I read it correctly, the Keewatin captains currently on the PC12 will go as a captain on the Metro??? Lets see, how can you spell accident? 
. I'm not saying a PC12 pilot is any lessor a pilot than a King Air pilot or a C-152 pilot. BUT what I understand is that your metros are without autopilot, traditional gauges like most planes in the north. And the PC12 is a state of the art glass cockpit, hang on I guess that would fall in the category of a flightdeck 
, full autopilot aircraft. Oh yeah I forgot it only has one engine. Not to knock that one engine but how well will these guys and gals adjust to a multi engine non-auto anything with old fashioned gauges in the cockpit? Are they even group 1 rated?
Oh and another thing artic flying is not an art form for the select few. All it takes, just like everything else, is training. So that cannot be used as a valid argument to put someone in the captains seat of a radically different aircraft. 'Cause if you do that, your asking for unfortunate things to happen. So I hope that this won't happen. Maybe the best thing for both companies is to put them as f/o's untill it is their turn.
And to Gilligan, I get from your posting you a perimeter pilot. You guys have a union? If so what are your union representatives doing right now? Hammering out a new contract? Integrating the possibillities for cross company flying? You guys, both the companies, are going to have an AC versus Canadian seniority/equipment fight on your hands. You have experienced metro crews versus experienced artic crews. What are you guys gonna do???
. I'm not saying a PC12 pilot is any lessor a pilot than a King Air pilot or a C-152 pilot. BUT what I understand is that your metros are without autopilot, traditional gauges like most planes in the north. And the PC12 is a state of the art glass cockpit, hang on I guess that would fall in the category of a flightdeck , full autopilot aircraft. Oh yeah I forgot it only has one engine. Not to knock that one engine but how well will these guys and gals adjust to a multi engine non-auto anything with old fashioned gauges in the cockpit? Are they even group 1 rated?Oh and another thing artic flying is not an art form for the select few. All it takes, just like everything else, is training. So that cannot be used as a valid argument to put someone in the captains seat of a radically different aircraft. 'Cause if you do that, your asking for unfortunate things to happen. So I hope that this won't happen. Maybe the best thing for both companies is to put them as f/o's untill it is their turn.
And to Gilligan, I get from your posting you a perimeter pilot. You guys have a union? If so what are your union representatives doing right now? Hammering out a new contract? Integrating the possibillities for cross company flying? You guys, both the companies, are going to have an AC versus Canadian seniority/equipment fight on your hands. You have experienced metro crews versus experienced artic crews. What are you guys gonna do???
can it get any better
