Following a previously announced Request for Proposals (RFP), Air Canada has revealed it has signed a Memorandum of Understanding (MoU) to expand its relationship and amend its capacity purchase agreement (CPA) with Air Georgian. The regional carrier has been selected to operate a number of additional regional routes including transborder routes in mid-2014 using Bombardier CRJ aircraft.

Air Georgian has been providing aviation services and charter flight solutions for more than 25 years. It became a Tier III partner of Air Canada in 2000, operating as Air Alliance under a CPA. Today its Air Canada Express operations focus on transborder and domestic airline operations and it carried over 350,000 passengers per year for Air Canada from Toronto's Pearson International Airport, Montreal's Pierre Elliott Trudeau International Airport, Halifax's Robert L. Stanfield International Airport and Calgary's International Airport across 19 Canadian and US destinations.

The competitive bid process, launched in September 2013, generated a significant level of response from a number of Canadian and US regional operators but following a thorough evaluation of proposals received, Air Georgian was selected on the basis of a broad range of criteria including operational safety, efficiency, cost and service.

"We are pleased to expand our longstanding commercial relationship with Air Georgian that will allow Air Canada to introduce more cost-competitive operations in a number of our key regional markets," said Kevin Howlett, senior vice president, regional markets, Air Canada. “The award of additional flying to Air Georgian is an important step in our regional airline diversification strategy and ongoing cost transformation program."

Air Canada currently has capacity purchase agreements with four regional airline partners: Jazz Aviation, Sky Regional Airlines, Air Georgian and Exploits Valley Air Services (EVAS). Jazz Aviation is the main provider of current regional services to Air Canada and has a mixed fleet of around 120 regional jet and turboprops ranging from 38-seat Bombardier Dash 8-100s to 70 plus seater Dash 8-Q400s and CRJ705s. Sky Regional is the carrier that is now operating the Embraer 175s for Air Canada alongside its initial fleet of Bombardier Dash 8-Q400s, while Air Georgian and EVAS operate smaller 18-seat Beech 1900s on thinner routes.

"We are excited with this opportunity to expand Air Georgian's presence as an Air Canada Express regional operator beginning in 2014," said Eric Edmondson, president, Air Georgian. "The selection of Air Georgian for this expanded role is based on our proven ability to offer seamless connections and service for Air Canada customers that is of mutual benefit for both airlines."

Alongside its existing Beech 1900 operations for Air Canada, Air Georgian also operates and/or maintains a fleet of corporate jets from its base in Toronto. The final implementation of the amendment to the CPA remains subject to the parties making any necessary filings, obtaining regulatory approvals and finalising documentation.