Good afternoon, Mr. Chair and honourable members of the committee.

Thank you very much for the opportunity to present today. I am pleased to join you in my capacity as president and CEO of Calm Air.

As a regional airline established in 1962, Calm Air now provides essential scheduled passenger and cargo services to 19 communities across central Nunavut and northern Manitoba. Operating 15 aircraft and employing 600 Canadians, including 150 Inuit and first nations, Calm Air also provides charter services across North America.

At Calm Air, we know we are an essential part of the communities we serve. We take our responsibility very seriously and do business as a responsible and conscientious community partner. For instance, of interest with respect to the study, we allow all Inuit beneficiaries in our network to ship locally harvested food, which is called country food, for free within our scheduled network.

With that context, I would like to share the following with the committee for consideration.

First, Calm Air is not a direct participant in the nutrition north Canada program. We appreciate that a considerable amount of the cargo we handle is food, and we prioritize the movement of that cargo accordingly. However, we price all freight consistently, and in that way, the cost to ship food is no different from the cost to ship other essential cargo, like medical supplies, industrial material or household goods.

Second, we know that getting freight transported quickly and efficiently across our network is vital in meeting our commitment to the communities we serve. Calm Air transports over 25 million pounds of freight annually, and we've made significant investments to make sure we're delivering on time. The key measures we've implemented include specifically modifying our aircraft to be “combi”, or combination aircraft, which allows us to transport passengers and palletized freight on the same flights. This both subsidizes the freight, through cost-sharing with passenger sales, and allows us to increase frequencies into smaller markets.

We've also built a series of climate-controlled warehouses across our network in Nunavut, which allows us to fly freight 24 hours a day. It gives customers the opportunity to pick up their goods at times that are convenient to their schedules and allows us to recover operations much more quickly in the event of weather disruptions.

Third, we are deeply concerned with affordability. We know that part of providing the reliable service Calm Air prides itself on is our obligation to ensure that people can access our services from a price perspective. Right now, Calm Air's prices on freight are among the lowest in the Arctic, and our cargo business is not one of our profit drivers. We approach freight with a mind to finding a balance between offering affordable services and making sure our business remains sustainable.

Finally, while some of the cost drivers associated with freight services to the north—specialized equipment or the fact that very little cargo comes south, so the freight will need to bear the cost of travelling both ways—are problems you would expect to see in remote destinations, most of what is driving the cost today might not be apparent simply by looking at our route map. The costs associated with operating aircraft have risen exponentially, far outpacing even the elevated levels of inflation we see day-to-day. Fuel, labour rates, parts and maintenance are all costs that have risen significantly in the wake of the disruption caused by the pandemic.

Perhaps most importantly for this committee, government policy decisions made without proper consideration for the realities of life in the north also drive cost.

For instance, Transport Canada's use of the user pay principle disadvantages remote destinations, where there are few residents to soak up the cost burdens of aviation infrastructure. Apply this to a carton of milk. That carton, when shipped, doesn't just cover the cost of the plane; it covers the cost of the plane, both airports and all of the service providers in between.

Changes to the pilot fatigue requirements in December 2019 mean that we have had to add additional costs, being pilots, and change how we schedule airline service.

Finally, Canada's carbon tax has also increased fuel costs in certain remote destinations.

In conclusion, Calm Air prides itself on being a responsible partner in Canada's northern ecosystem. We are willing to work closely with government on policy solutions that keep aviation services in the north, including the shipment of food, sustainable for all.

Again, thank you for your invite here today. I appreciate any questions you will have.