FIRST Air and Qikiqtaaluk Corp have entered into an agreement to set up a new airline called, Qikiqtani First Aviation Ltd in Canada's Far North.

    The airline will target fresh produce suppliers from Nunavut's Baffin region. "We recognise the importance of cost effective access to country foods and we are proud to provide a solution that is agreeable to all parties," Harry Flaherty, president of Qikiqtani First Aviation, was quoted as saying in a report by Nunatsiaq Online.

    The flat rate for the Inuit and non-Inuit in the region will be US$1.50 per kilo to ship country foods to other northern communities that First Air flies services. The new air cargo rate will not apply to First Air's Ottawa, Yellowknife or Winnipeg destinations.

    "The benefit of what exists today is that the [cargo rate] is streamlined system wide," said Jennifer Alldred, a First Air spokeswoman. "Previously, it varied based on distance, but now it's the same price across the network."

    Beneficiaries received a 60 per cent discount under the old rates, although they had to pay NavCan and fuel surcharges.

(Resource:http://www.shippingonline.cn)