Canadian North (5T, Yellowknife) is reportedly considering replacing its ageing fleet of four B737-200(M)s with a modified "combi" version of its B737-300s. FlightGlobal states fellow Canadian operator, Kelowna Flightcraft (Kelowna), has been tasked with coming up with a suitable modification for the B737-300 which will allow for the transport of both passengers and cargo.

"Kelowna Flightcraft’s 737-300 combi modification will have four configurations: all-cargo, with a 18,220kg (40,000lb) capacity; 30 or 86 seats and the balance cargo; or all-passenger, with 132 seats," the report said. The conversion will be carried out by aircraft-conversion specialists, Pemco, at Tampa International in Florida.

In contrast to the B737-200(M)s, the modified B737-300 combi will not be capable of operating on gravel runways.

Canadian North uses its B737-200(M)s on flights between Ottawa International, Edmonton International, Iqaluit, Rankin Inlet, Yellowknife, Kuglutuk/Coppermine, Norman Wells, and Cambridge Bay.