Ontario-based Discovery Air is finalizing deals to buy two northern aviation companies in the Northwest Territories. 

It plans to buy Great Slave Helicopters for $20 million in cash and 40 million Discovery Air shares, and has also reached a letter of agreement to buy Air Tindi.

Discovery Air president Dave Taylor says he is encouraged by the economic outlook for the North.

"Things are looking good here," he said. "A prospect of a pipeline will mean even more work for helicopters and airplanes. So obviously it's a good thing for the two companies — for Great Slave that has joined up with us and hopefully Tindi will."

The company also plans to move its head office to Yellowknife, he said, adding it could mean 200 new jobs in the capital city.

"That seemed appropriate considering with the Great Slave acquisition a good 90 per cent of the revenue is from the Northwest Territories," said Taylor. 

"And Tindi, say if we're lucky enough to have Tindi join with us, it would probably be $100 million in revenue generated in the Northwest Territories.  So why have a head office elsewhere?" 

Taylor says the company's plans will go ahead whether or not a pipeline is built down the Mackenzie River valley.