The Government of Nunavut has decided not to exercise its equity option for a minority interest in Canadian North. The government determined that its objectives of supporting reliable, affordable, transparent, and sustainable air services for Nunavummiut can be achieved without an equity investment. Exchange Income Corporation (EIC) will continue to work closely with the government through its valued partnership and Commercial Airline Travel Services Agreement.

EIC stated that the Government of Nunavut’s conclusion speaks to the trust placed in the corporation to deliver essential services to constituents. Canadian North has been a critical addition to EIC’s northern aviation operations, and the company is pleased with its performance to date. EIC remains the preeminent supplier of airline services in the North.

The corporation is committed to collaborating with the government to assess where future investment and attention are required to support long-term service stability. This includes meeting the expected increase in demand resulting from the Canadian Government’s commitment to Canada’s sovereignty and security in the North.

About Exchange Income Corporation

Exchange Income Corporation is a diversified acquisition-oriented company focused on two segments: Aerospace & Aviation and Manufacturing. The corporation uses a disciplined acquisition strategy to identify already profitable, well-established companies with strong management teams, steady cash flow, niche market operations, and opportunities for organic growth.

PAL Aerospace, a subsidiary of Exchange Income Corporation, has reached an agreement with SkyAlyne for a contract valued at approximately $750 Million to provide modification, in-service support, and training services for the Royal Canadian Air Force Future Aircrew Training (FAcT) program. The agreement is anticipated to be finalized over the next several months and will see PAL Aerospace deliver critical support for the RCAF CT-142Q Citadel fleet.

The Government of Canada awarded the FAcT contract to SkyAlyne, a joint venture between CAE and KF Aerospace, in late May 2024. This 25-year initiative is currently in a multi-year transition period to become the sole ab-initio aircrew training program for the RCAF, modernizing pilot and aircrew training for the next generation of aviators.

Under the agreement, PAL Aerospace will provide all aircraft modifications for the RCAF CT-142Q Citadel. The company will also deliver Wings Standard training to all Air Combat Systems Officers and Airborne Electronic Sensor Operators through the life of the contract, along with In-Service Support for the operation of the fleet.

"PAL Aerospace is proud to be joining SkyAlyne in delivering this nationally important program for the Royal Canadian Air Force," said Simon Carroll, President, PAL Aerospace. He emphasized that the responsibility reflects the strength of the team and their commitment to supporting Canada’s operational readiness.

SkyAlyne General Manager Kevin Lemke welcomed PAL Aerospace to the team, noting their proven expertise in modification, in-service support, and training will be vital for ensuring Canadian military pilots and aircrew receive the best possible training solutions for decades to come.

Exchange Income Corporation will discuss the agreement in greater detail during its second quarter results conference call on August 12, 2026.

Key Contract Details