First Air and Canadian North have announced that they're planning to merge.

The two airlines made the announcement in a joint news release on Friday afternoon.

The companies said the move is "in order to provide the best possible essential air services across the Arctic."

The statement said the airlines need regulatory approval to establish the new entity.

"The proposed Pan-Arctic airline will operate under the name 'Canadian North' and aircraft will feature new First Air livery, including its Inukshuk logo," the news release said.

"Customers of First Air and Canadian North will not see changes to services, including fares and scheduling."

This isn't the first time the two airlines have talked of merging. In 2014, the owners of First Air and Canadian North cancelled talks to merge, saying there were no future discussions planned.

The airlines subsequently had a codeshare agreement, which ended in 2017.

The companies now say the merger will result in fewer flight interruptions, and it will address challenges like pilot shortages.

The headquarters for the proposed airline will be in Ottawa.

The companies say the merger should be complete by the end of the year.

Canadian North is owned by the Inuvialuit Development Corporation and offers 17 scheduled flights in the N.W.T. and Nunavut. First Air is a wholly-owned subsidiary of Makivik Corporation.