PAL Airlines says it has completed a Letter of Intent (LOI) with Air Canada as a first step towards finalizing a commercial deal for offering regional flights in eastern Canada.
The proposal, which remains subject to final negotiations between the two airlines, would see PAL acquire up to six additional Dash 8-400 aircraft to be operated on behalf of Air Canada for a term of up to five years on regional routes in eastern Canada, according to a press release issued Tuesday (May 30).
Routes operated by PAL Airlines, on behalf of Air Canada under the Air Canada Express brand, would be in addition to the existing PAL-scheduled and charter network throughout Eastern and Atlantic Canada.
“PAL Airlines has steadily built its extensive presence in Eastern and Atlantic Canada by pursuing the strategic growth of sustainable, essential services that provide connectivity to national carrier networks,” said Calvin Ash, president of PAL Airlines, in a statement.
"This proposed arrangement with Air Canada is a complimentary extension of that strategy. 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.”
In March, PAL Airlines announced a partnership with Air Canada and Aeroplan to enhance its existing interline agreement by providing all PAL passengers with the ability to earn and redeem Aeroplan points.