PAL Airlines, a subsidiary of Exchange Income Corporation has completed a Letter of Intent (LOI) with Air Canada to formulate a commercial agreement leading to the provision of regional air services in eastern Canada.
As a part of the agreement PAL would 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
These routes would be in addition to the existing PAL Airlines 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.” 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.”
Meanwhile 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.
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 Colin Copp, President and Chief Executive Officer of Chorus.