In a move to meet the growing demand for regional air travel, Air Canada has taken a preliminary step towards securing a new agreement with PAL Airlines, aimed at expanding its regional capacity in Eastern Canada.
The proposed agreement would see PAL Airlines acquire up to six additional Dash 8-400 aircraft to be operated on behalf of Air Canada under the Air Canada Express brand for a term of up to five years on regional routes in eastern Canada.
Calvin Ash, President of PAL Airlines, said the proposed agreement would be an extension to the airline's existing scheduled and charter network throughout Eastern and Atlantic Canada.
"It would support continued growth in our operation, deepen our ability to build regional connectivity, and fortify PAL Airlines’ presence in the communities who have always supported our development," said Ash.
The agreement comes as Air Canada continues to strengthen its position in the region.
The addition of PAL's aircraft to Air Canada's Maritime schedules will not affect Air Canada's relationship with current supplier, Chorus Aviation, which is the parent company of Jazz.
"Jazz is our long-term Air Canada Express partner, and we are working together to increase flying activity within the framework of our existing CPA given the current, industry wide pilot situation. As these efforts continue, and to help meet the needs and expectations of the travelling public, Air Canada has entered into a bridging arrangement with another airline to provide additional regional capacity on select routes in eastern Canada," said Mr. Michael Rousseau, President and Chief Executive Officer of Air Canada.
"Chorus understands that Air Canada is increasing capacity to meet travel demand and that the addition of these aircraft is a bridging solution. We confirm that this agreement does not impact Chorus financially," said Mr. Colin Copp, President and Chief Executive Officer of Chorus.
The agreement remains subject to final negotiations between the parties.
