Air Canada and PAL Airlines have concluded a letter of intent to formulate a commercial agreement, paving the way for the provision of regional air services in eastern Canada.
Presently, the airlines are engaged in negotiations to determine the final details of the deal, which envisions the acquisition of six Dash 8-400s by PAL Airlines to operate under the Air Canada brand. The agreement, lasting up to five years, encompasses regional routes in eastern Canada.
Calvin Ash, the president of PAL Airlines, remarked, «PAL Airlines has steadily bolstered its presence in eastern and Atlantic Canada, striving for strategic growth through the provision of essential and sustainable services that interconnect with national airline networks.»
He further noted that this proposed deal with Air Canada is a complementary extension of this strategy. It will support PAL Airlines‘ continued operational growth, enhance regional connection capabilities, and solidify the airline’s presence in communities that have backed its development.
The routes that PAL Airlines will operate on behalf of Air Canada, under the Air Canada Express brand, will be incorporated into the airline’s scheduled and charter flight network.
Discussions with Chorus Aviation
Chorus Aviation, the parent company of Jazz Aviation, and Air Canada are assessing the pros and cons of the agreement with PAL Airlines. Both companies have maintained a strategic partnership for many years and aim to ensure the deal benefits all involved parties equally.
Michael Rousseau, president and CEO of Air Canada, said that «Jazz is our long-term partner in Air Canada Express, and we’re collaboratively working to boost flight activity within our current Joint Venture Partnership Agreement (CPA), given the current situation of pilots across the sector. While continuing with these efforts and to meet travellers’ needs and expectations, Air Canada has reached a temporary deal with another airline to provide additional regional capacity on select routes in eastern Canada.»
Colin Copp, president and CEO of Chorus, stated that «the company understands that Air Canada is ramping up capacity to meet travel demand and that the addition of these aircraft is a temporary solution. Additionally, he confirmed that this agreement will not affect Chorus from a financial perspective.»
