MONTREAL — Air Canada plans to extend and expand its commercial agreement with PAL Airlines, a move aimed at supporting and growing regional air service from Montréal to destinations in Québec and New Brunswick.

The proposed agreement would see the existing partnership extended by an additional four years through 2032, while also increasing the number of PAL-operated regional flights for Air Canada Express. Under the expanded arrangement, the covered fleet is expected to grow by five additional Dash 8-400 aircraft, bringing the total to 11.

“Air Canada is committed to regional connectivity. Our proposed agreement with PAL Airlines will enable us to protect existing services from Montréal to destinations in Québec and New Brunswick and support the overall growth of our regional network,” said Mark Galardo, Executive Vice President and Chief Commercial Officer and President of Cargo at Air Canada.

“Since PAL Airlines began operating for Air Canada Express in 2023, it has proven to be a strong partner, offering our customers in eastern Canada reliability, excellent customer service and a greater choice of flying options.”

PAL Airlines says the expanded agreement would further strengthen its footprint in Eastern and Atlantic Canada, while supporting Air Canada’s broader regional network strategy.

Said Calvin Ash, President of PAL Airlines: “PAL Airlines is proud to work on expanding our agreement with Air Canada, growing our considerable presence in Eastern and Atlantic Canada by delivering flexible solutions that support regional connectivity for the Air Canada network. This proposed extended arrangement with Air Canada reflects their confidence in our operation, supports the continued growth of our airline and will solidify our presence in the regions which have supported our development.”

A letter of intent has been signed by both airlines, which is subject to final negotiations.