A Charlottetown-based, family-owned airline is selling the majority of its shares to an Ontario company.
Cargojet Income Fund will assume control of 51 per cent of Prince Edward Air on March 1. Financial details of the sale will be announced at that time.
Bob Bateman founded Prince Edward Air in 1989, and it now operates a fleet of 13 small aircraft, primarily in Atlantic Canada. Cargojet operates larger jets, moving cargo across the country.
Bateman said it was time to decide the future of his 90-employee operation.
"Prince Edward Air has acted as a feeder to their core trunk service in the last number of years," Bateman told CBC News Monday.
"It was natural that this type of discussion were to evolve. Prince Edward Air will grow to about twice its size right now in very short order."
Prince Edward Air will remain a separate company, with headquarters in Charlottetown. As part of the deal it will inherit the assets of Georgian Express Ltd., another small Ontario airline, which was purchased by Cargojet last fall.
Bateman said he'll be staying on as president for now, but is looking forward to other endeavours.
"It's sensible to start considering at my age now an exit strategy that will enable us to pursue other goals within our family such as the Stars for Life Foundation for young people with autism," he said.
Bob and Carolyn Bateman helped create the Stars for Life foundation to secure housing and employment opportunities for adults with autism.