News Releases

News Release - Manitoba

February 14, 2019

Manitoba Enters into Agreement for General Transportation Air Services



The government of Manitoba has entered into an agreement with Exchange Income Corporation to provide services for general transportation under air services, including air travel for judges, sheriffs and accused persons, Infrastructure Minister Ron Schuler announced today.  The transaction is the result of a competitive request for proposal (RFP) process initiated in 2018.

“Our government is committed to public safety above all and this agreement ensures that safer service is accomplished at a lower cost for Manitobans,” said Schuler.  “This agreement will also reduce the number of occasions where court is rescheduled or cancelled in northern parts of our province, so the criminal justice system is administered in a timely fashion.”

Exchange Income Corporation is a Winnipeg-based company, focused on opportunities in aerospace, aviation and manufacturing.  The company has resources across the province including hangars and aircraft operating under carriers such as Bearskin Lake Air Service, Calm Air, Custom Helicopters, Keewatin Air, and Perimeter Aviation.

Under the previous system, general transportation under air services was fulfilled by private carriers 97 per cent of the time.  There were no set rates, meaning the Manitoba government was paying rates determined by carriers with no cost certainty on a given flight, the minister noted.  Further, no accountability or service standards were set, meaning flights were rescheduled or cancelled with very little notice and little explanation as to cause, delaying the justice system and courts, he added.  A single court delay in the northern region of Manitoba costs on average $10,000 and extended delays can lead to cases being thrown out of court.

Manitoba Treasury Board Secretariat, the lead government agency on the RFP process, assembled aviation experts with decades of experience to review the safety management system, certification documents, safety alerts, and safety reports of all proponents including Exchange Income Corporation.  As part of the terms of the contract, Exchange Income Corporation is required to follow a strict reporting structure with daily, weekly and monthly reporting to the Manitoba government.

An RFP process remains underway for air ambulance services, the minister noted, adding that once those RFP processes are completed, all air services agreements will be publicly disclosed.

The terms of this contract are for five years and for $4.2 million per year, reducing the cost to the Manitoba taxpayer by $1.3 million annually.
 

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