PAL Airlines Ltd., a subsidiary of Exchange Income Corporation has signed a Letter of Intent (LOI) with Air Canada as step towards the finalization of a commercial agreement between the two airlines.
The proposal relates to the provision of regional air services in eastern Canada by PAL Airlines on behalf of national flag carrier Air Canada.
Acquisition of additional Dash 8-400 aircraft
The proposed agreement, which remains subject to final negotiations between the parties, would see PAL Airlines acquire up to six additional Dash 8-400 aircraft.
These new aircraft would be operated on behalf of Air Canada for a term of up to five years on regional routes in eastern Canada.
Routes operated by the regional airline per the agreement on behalf of Air Canada would be under the Air Canada Express brand.
These services 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.”
About PAL Airlines
PAL Airlines (formerly Provincial Airlines) is a Canadian regional airline with headquarters at St. John’s International Airport in St John’s, Newfoundland and Labrador, Canada.
It is a proud member of the Exchange Income Corporation family of airlines and serves an extensive network of scheduled and charter destinations across Eastern Canada and Quebec.
The regional carrier has over 40 years’ experience in the aviation industry with a reputation built on safety, reliability, and exceptional customer service.
In addition to its head office, it also has bases in Halifax, Nova Scotia (Halifax Stanfield International Airport), Happy Valley-Goose Bay (CFB Goose Bay), and Montreal, Quebec (Montréal-Pierre Elliott Trudeau International Airport).
Originally founded in 1972 as Provincial Airlines, the airline began operations with a fleet of three Beechcraft 18 aircraft. In 1981, Provincial Airlines acquired Eastern Provincial Airways, which expanded the airline’s fleet and network.
In 1997, Provincial Airlines was acquired by Air Canada Jazz, which rebranded the airline as PAL Airlines in 2001. According to Planespotters data, PAL Airlines currently operates a fleet of 14 De Havilland Canada DHC-8 aircraft, including 8-100, -300, and -400 models.
The carrier is a member of the Air Canada Jazz network. This allows PAL Airlines passengers to connect to Air Canada Jazz flights to destinations throughout North America.
It is also a member of the Star Alliance, which gives PAL Airlines passengers access to a global network of flights.
About Exchange Income Corporation
Exchange Income Corporation is a diversified acquisition-oriented company, focused in two sectors: aerospace & aviation services and equipment, and manufacturing.
The Corporation uses a disciplined acquisition strategy to identify already profitable, well-established companies that have strong management teams, generate steady cash flow, operate in niche markets and have opportunities for organic growth.