Air Canada and Newfoundland-based regional carrier PAL Airlines are moving toward an agreement that would extend their nearly three-year-old commercial partnership and grow service in eastern Canada.
The two carriers said they have signed a letter of intent to extend their current provider contract to 2032. As part of the deal, five additional PAL Dash 8-400 aircraft would be operated on behalf of Air Canada on regional routes in eastern Canada and Quebec.
The tentative agreement is subject to final negotiations.
PAL began operating Air Canada Express flights in 2023.
“Our proposed agreement with PAL Airlines will enable us to protect existing services from Montreal to destinations in Quebec and New Brunswick and support the overall growth of our regional network,” Mark Galardo, Air Canada’s executive vice president, COO, and president of cargo, said in a statement.
PAL is one of two regional operators that provide service under the Air Canada Express brand, the other being Nova Scotia-based Jazz Aviation.
