PALLING AROUND

Amid US Cuts, Air Canada Plans Regional Expansion with PAL Airlines

PAL Airlines Dash 8-Q400

As Canadian airlines continue to pull back US capacity, Air Canada is expanding service in eastern Canada through an enhanced commercial agreement with PAL Airlines.

Under the proposed deal, PAL would operate more regional flights on behalf of Air Canada Express out of Montreal and into smaller markets across Quebec and New Brunswick.

The agreement would extend the current partnership by four years, through 2032, and increase the number of PAL-operated aircraft from six to 11.

"Air Canada is committed to regional connectivity," said Mark Galardo, Executive Vice President and Chief Commercial Officer and President of Cargo at Air Canada. "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."

PAL Airlines has flown for Air Canada Express since 2023, operating Dash 8-400 turboprops on short-haul routes.

"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,” said Galardo.

Calvin Ash, President of PAL Airlines, added "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.”

The letter of intent between the two airlines remains subject to final negotiations.

News of the Air Canada-PAL interline expansion comes after Ottawa and the Maritime provinces committed $9 million to PAL Airlines to operate twice-daily service between Halifax, Sydney, Charlottetown, Fredericton, and Moncton.

As reported by Open Jaw in August, the three-year pilot program, jointly funded by New Brunswick, Nova Scotia, PEI, the Atlantic Canada Opportunities Agency, and regional airports, aims to address a long-term decline in regional service between Maritime airports post-pandemic.

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Chris Daniels

Though he’d only flown a handful of times as a kid, Chris Daniels’ career has since taken him around the world — from Grand Cayman to Hong Kong. It’s now brought him to the team at Open Jaw. As a former contributing editor at Hello! Canada, he brought the magazine’s food and travel pages to life, covering star-studded events in the Caribbean and US, interviewing celebrity chefs like Gordon Ramsay, Giada De Laurentiis and Emeril Lagasse. He also worked at Time, contributing to its coverage of the US Open tennis tournament in New York City. Fun fact: While much of the world baked bread during the pandemic, Chris and his wife had a beach house built on the Honduran island of Roatan. Called Casa Coral Dreams, they now rent the tropical escape to visitors from around the globe.