Air North announced Tuesday it has received permission from the Yukon government to issue 600 Class D replacement and new shares, at an issue price of $7,500 each.

Air North received authorization from the Yukon Superintendent of Securities on Monday, says a press release from the airline.

"What we want to tell everyone is we got the registrar's order and can make the latest equity offering," Air North CEO Joe Sparling told a Tuesday afternoon news conference.

"This will let us move on with flight modernization plans."

The Class D shares are being used as a replacement for the Class C shares, which were sold last March.

The 636 Class C shares sold for $7,500 each, and were sold out in under a week.

The "overwhelming" interest in the Class C shares created a problem in regards to the tax credit shareholders were promised, said Sparling.

Air North received so much interest, it sold shares to be honoured until 2013, even though tax credits are only supposed to be divvied out year by year.

Deb Ryan, Air North's marketing director, said today there was a "tsunami" of interest in the Class C shares.

Class C shares will be honoured for tax years 2008 and 2009, but for the years 2010 to 2013, Class C shareholders will have the option of receiving back their subscription monies, or subscribing for an equivalent number of Class D shares. 176 shares are being offered in addition to the 424 replacement shares, for a total of 600 Class D shares

Air North received authorization to issue the Class C shares from the Department of Economic Development in late February under the Yukon Small Business Investment Tax Credit.

The Class D shares will be identical to the Class C shares in some ways. For instance, Class D shareholders are entitled to receive two free return flights from Whitehorse to a southern destination each year.

But Class D shareholders will not be eligible for the Yukon small business tax credit nor receive the four per cent annual cash dividends payable under the Class C shares.

Instead, Class D shareholders will receive a bonus, one-time flight dividend of eight flight segments, or four return trips, immediately following the issue of their shares.

The Class D shares will be offered on or before June 30.

"We worked with the government to come up with a compromise," said Murray Leitch, the vice-president of Air North. "We think the Class D shares does that.

"It's been a bit of a trying process," said Leitch.

He added he thinks the "vast majority" of interested shareholders will be happy to take the Class D shares.

"Everything is ready to move forward."

Leitch added that the airline is creating more jobs for Yukoners and encouraging investment within the territory.

"People are calling, asking where their shares are. (They're) not wanting their money back," said Leitch.

Air North will be using the money to help finance the purchase of a new Boeing 737 for its southern routes and a new turboprop for the airline's northern routes.

The new 737 is a larger aircraft with better fuel economy, said Sparling. The "newer generation of engines" has increased cargo and passenger carrying capacity and burns less fuel, he added.

"We intend to keep the existing 737s for backup and charter use," said Sparling. "A backup aircraft will fit in with our operations."

Leitch said there are several hundred people on a waiting list to buy shares in the airline.

"We ask that subscribers wait patiently for the call," he said.