Flying high, Air Creebec leads by example.

Greater Sudbury -- It takes a certain amount of fortitude to admit a lack of knowledge and experience.

Albert Diamond, president and CEO of Val d'Or, Quebec's Air Creebec Airlines, says this was the first step in developing their strategy for joint venture partnerships.

Diamond was the keynote speaker at a luncheon during the Learning Together Conference, designed to bridge the gap between mining companies and First Nations communities. The conference took place Feb. 22-23 at the Radisson Hotel in Sudbury.

About 50 people were there to listen to Diamond.

Diamond, who was instrumental in negotiations that led to the signing of the agreement of the first land claims settlement in Canada (James Bay and Northern Quebec Agreement), openly shared his story of the development of the airline, owned by the Cree company Creeco.

"It takes guts to say we can't do it on our own," he said, adding that you have to be patient, because a business does not evolve overnight.

He pointed out that many First Nations groups find it difficult to admit they don't have the knowledge and want to jump into the business.

Diamond admitted the profits were not immediate and it took 11 to 12 years to say "We have a hell of a company."

The idea for developing an airline was tossed about in June 1976 during a three-day planning session at a fishing camp. When the topic of transportation came up, air travel was identified as the most relevant due to the large distances between their communities.

In July 1982, Air Creebec was established.

"We knew the companies that were there, but in the end a decision was made that we didn't know enough to do it ourselves," Diamond said.

Consequently, they approached a Timmins company called Austin Airways. With Austin well aware that Air Creebec was poised to be a significant competitor in the Cree communities once established, a five-year agreement was signed.

Diamond said they learned enough to manage and make decisions necessary to operate an airline after about two years of working with their partner. The deal went so well, it was extended for a sixth year. In 1988, Air Creebec bought them out marking one of the largest commercial deals to date performed by any Native group in Canada.

Based upon that first experience with a joint venture partnership, the same model is used today.

This has led to a myriad of other partnerships established in the same fashion as the first contract.

For the airline, Diamond has focused upon certain priorities, which he says have contributed to the airline's success:

* An excellent safety record that comes from the fact that the majority of the people that fly with the airline are Cree;

* The board of directors are Cree; and

* What is given back to the Cree communities.

The airline supports smaller communities by offering Dash-8 service, free transportation (last year $118,000 worth) for youth activities including flying in guest speakers for career days at schools, and by paying attention to job creation in the communities.

In addition, Diamond has diversified the airline with freight cargo services, which proved vital after the terrorist attacks of Sept. 11 2001. In the ensuing slump in air travel in North America, many passenger-only airlines met an early demise.

Diamond has also branched out into mining. In May 2004, Cree Quebec held a conference for mining sector and government representatives. It helped educate the industry about the variety of sectors in the offering, including fuel distribution, trucking, catering and construction. Over the last year, Air Creebec has worked with nine mining companies.

"It started with that mining conference and letting the mining industry people know that we were open for business," Diamond said.

They recently secured a three-year contract with De Beers Canada for passenger and freight cargo worth $10.4 million.

Diamond continues to negotiate deals as joint venture partnerships for a set time, with both parties in full understanding.

"In the end, the buy out will be there," he said. "It is a win-win situation."

By ADELLE LARMOUR

Northern Ontario Business