Yukon shareholders in Air North have voted almost unanimously to create a new option for their original $5,000-investment, says company president Joe Sparling.

Sparling said Tuesday shareholders voted June 28 to create an option that provides them with the opportunity to continue free-flight benefits for another 10 years, or longer.

In the original package, the 640 investors had to put up $5,000 for a period of five years.

In return, they received a one-time Yukon tax write-off of $1,250, four one-way flight segments per year, and four per cent interest annually on the $5,000.

At the end of the five years, the $5,000 was to be returned and the investment terminated.

Sparling said in an interview the company spoke with many shareholders who were interested in an option to extend their investment beyond the five years.

Under the new arrangement approved by almost all of the 400 people who voted, shareholders have given themselves the option to convert their shares into a new arrangement with the Yukon-owned and operated airline, Sparling explained.

He noted, however, that shareholders have simply created a new option, and are under obligation to extend their investment.

'The vote at this meeting was a fairly simple vote, and really they had nothing to lose,' said Sparling, the co-founder of Air North who retained 51 per cent ownership when the Vuntut Development Corp. bought 49 per cent of the company in 2000.

Under the option, shareholders can convert their original class C share into a Class D share. The class D share maintains for at least 10 years their four free flight segments two return trips per year but removes the annual interest payment.

Anytime after the 10-year anniversary, said Sparling, Air North can call in the shares and pay out $6,000 each, though it is under no obligation to call in the shares or make any payouts.

If the company chose not to cash in the shares after 10 years, investors would retain the free flights but their money would be locked into Air North, he explained.

Sparling emphasized, however, that under the new arrangement, shareholders would have the ability to sell their shares privately. And he suspects there are Yukoners who are ready to pay $5,000 or more for four one-way flights per year.

A local investment firm has already been contacted to discuss the possibility of an informal clearing house for those looking to sell and buy the private shares when the time comes.

The first block of five-year investment shares will expire in September 2007. The second set of five-year shares will expire in September 2009.

Sparling said there may come a time when the company contemplates new investment opportunities, perhaps when it begins looking at replacing aircraft.

But that won't be for a least five years, he said.