Gloomy economic outlook leads to layoffs at N.W.T. airlines

Some regional airlines in the Northwest Territories have had to cut staff in recent weeks, saying the global economic downturn is partly to blame for a decrease in business.

Northwestern Air Lease Ltd. of Fort Smith, N.W.T., had to lay off four of its 50 employees this week. The airline offers scheduled and charter flights, with the mining and resource industriesaccounting fora large part of the airline's charter flight business.

"A lot of the exploration work and stuff like that, that was ongoing in previous winters, has slowed down quite significantly," Northwestern co-owner Brian Harrold told CBC News on Wednesday.

"I believe a lot of the companies in the territories the people that I've been talking to have also expressed the same thing: that we're all kind of seeing a bit of slowdown. There's not quite as many people doing charters."

Harrold said a hard landing that sidelined one of Northwestern's airplanes last week did not help the company's fortunes, but he stressed that high fuel prices and the economic slowdown are to blame for the layoffs.

Another company facing a decrease in business from resource exploration companies is Yellowknife-based Discovery Air, which owns Air Tindi and Great Slave Helicopters. It cut six positions in Yellowknife last week.

But Rob Carroll with Discovery Air's northern group told CBC News that the company has a stable amount of work, including the contract for medevac service.

"We're supported with a lot of long-term contract work, and that doesn't affect the usual operations," Carroll said.

"I think, if anything, there can be some positive out of this, in that we're still a mobile company and can go where the work is, both Air Tindi and Great Slave."

Harrold said he believes the economic downturn will continue well into next year.