Air Canada is working with PAL Airlines to add up to six De Havilland Canada DHC-8 aircraft which will be used to offer regional flights in eastern Canada.
PAL Airlines says it has completed a Letter of Intent with AC as a first step towards finalizing a commercial deal. The proposal is still subject to final negotiations.
The six Dash 8-400 planes would be operated on behalf of Air Canada for a term of up to five years.
Based in St. John's Newfoundland, PAL Airlines began as an Atlantic Canada flight school 45 years ago. It has grown into one of the largest independent airlines operating in Eastern Canada.
Air Canada says it has consulted on the issue with Jazz Aviation, a subsidiary of Chorus Aviation, the largest regional operator in Canada and the provider of regional air services under the Air Canada Express brand.
"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," said Air Canada president and CEO Michael Rousseau.
"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."
Chorus says it understands the need for a "bridging arrangement."
"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 Chorus president and CEO Colin Copp.
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