Wasaya Airways cashes up for fleet renewal, regional expansion: First Nations-owned airline strikes $25-million financing deal for fleet renewal, regional expansion.

PositionIndigenous Business

When Michael Rodyniuk went looking for capital to take Wasaya Airways to the next level, he went back to his old employer.

The president-CEO of the First Nation-owned airline announced Feb. 1 that it had struck a $25-million debt and equity deal with Exchange Income Corporation (EIC) to recapitalize the once-troubled regional carrier and elevate it to new heights.

"This gives us the capital to grow the company and take it to the point where we've never seen Wasaya go before," said Rodyniuk.

Wasaya, which is owned by 12 First Nation communities and serves 25 destinations in northwestern Ontario, launched flights into Winnipeg last year. About 35 per cent of its 320-employee workforce is Indigenous.

With close to 30 years of experience in aviation management, marketing and sales, Rodyniuk had been vice-president and COO of the aviation arm of Exchange Income Corporation, the Winnipeg parent company that purchased Bearskin Airlines in 2010.

EIC's holdings include ownership of Perimeter Aviation (which includes Bearskin), Keewatin Air, Calm Air International, Custom Helicopters, Regional One and Provincial Aerospace.

When Rodyniuk joined Wasaya in May 2015 his three-step rebuilding program involved improving the day-to-day operational basics, such as their on-time performance, tackling a decades-old debt, and securing an equity partner to recapitalize the company.

Rodyniuk said they weren't looking for financiers who wanted a three- to five-year return on their investment. They needed someone who saw value in the potential of Wasaya and would be in it for the long haul.

The great thing about having knowledge-based partners like Exchange is these guys know aviation like we do. Collectively, we can make some wise decisions on where we can put our assets to get the highest and best return.

The transaction was expected to close on Feb. 28.

What percentage of an ownership stake EIC is taking in Wasaya is being kept confidential for now under the terms of the agreement.

"They see the positive work that our team has been doing," said Rodyniuk, who praised the effort of his staff.

They (EIC) see a well-positioned organization with good people that, if given access to low-cost capital, can grow dramatically. That's our marching orders. Now that we've secured capital, we can move forward and grow.

The money is earmarked to make some infrastructure improvements --repair a few leaky roofs and upgrade some building lighting--but it clears the way to...

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