Air Labrador (WJ, Goose Bay) and Innu Mikun Airlines (Goose Bay) have merged to create a new airline, Air Borealis (Goose Bay), with the aim of serving Newfoundland and Labrador in Canada's far east. The new carrier launched on June 15.

Formed in 1948, Air Labrador served the Newfoundland, Labrador and Quebec regions with six DHC-6s before shutting down last week. It is majority owned by the Nunatsiavut Government through its Nunatsiavut Group of Companies (NGC). Innu Mikun Airlines is operated by PAL Airlines (Canada) (PB, St. John's), and owned by the Innu Development Limited Partnership.

The new airline will also be operated by PAL, which will continue to serve the Lower North Shore, Newfoundland and part of Labrador under its own brand. Through the Air Borealis brand, it will serve coast of north-eastern Labrador, according to Radio Canada.

Although the merger essentially creates a monopoly, Air Borealis believes it will allow for expansion of service throughout the region with "more flight options [and] more routes."