To the Editor,
The recent characterization of Fort Frances’ agreement with North Star Air as an “airline bailout” misses a critical point: this is not a rescue of a private company, but a deliberate partnership designed to restore and sustain an essential community service.
Fort Frances lost scheduled passenger May 11, 2024. The question before council was simple—do we accept long-term isolation, or do we take a measured, structured approach to bringing service back? Council chose the latter.
This agreement reflects a shared-risk partnership model, not a one-sided subsidy. The Town is not simply handing over funds; it has established clear parameters, oversight, and limits. The revenue guarantee is capped, tied to actual performance, and only applies when service is delivered.
More importantly, the Town retains control.
Under this agreement, Council is not a passive funder—it is an active partner with the ability to manage risk. Through ongoing reporting, regular performance reviews, and structured financial limits, Council has the authority to guide how this service evolves. The agreement also allows for decisions around continuation, adjustment, or renewal based on real-world results and community benefit.
North Star Air, in turn, is not being “bailed out”—it is being contracted to deliver a service on behalf of the community. The airline assumes operational responsibility: running flights, maintaining schedules, and meeting performance expectations. The Town is ensuring that the service exists; the airline is responsible for making it work.
That distinction matters.
Equally important—and often overlooked—is the upside built into this agreement.
If the route performs well, the benefits do not flow only to the airline. A portion of surplus revenues is directed into a shared pool that can replenish the Town’s financial contribution or offset future shortfalls, reducing long-term exposure. This creates a pathway for the service to become increasingly self-sustaining over time.
Beyond that, strong performance opens the door for Council to make future decisions that benefit residents directly—whether through fare stability, expanded service, or reduced reliance on guarantees. In other words, success strengthens the community’s position.
This is what a balanced partnership looks like:
- Shared risk
- Shared opportunity
- Clear limits on public exposure
- Ongoing municipal oversight
- A defined path toward sustainability
Without this kind of collaborative approach, there is little incentive for any airline to enter a market of this size. The alternative is not a better deal—it is continued lack of service.
Communities across the country use similar partnership models because they work. They recognize that in smaller markets, air service does not materialize on its own—it requires coordination, commitment, and yes, partnership.
Council’s decision is not about favouring one business. It is about ensuring that residents, businesses, and visitors have access to the transportation links they need to thrive.
That is not a bailout.
It is a community investing in itself—and working with a partner to make that investment succeed.
– Tom Meilleur
Vice-president, NorthStar Air
