Air Canada and Abra Group, the parent company of Avianca and Gol airlines, have signed a memorandum of understanding to develop a joint venture, the companies announced Sunday. The final agreement is subject to final documentation and regulatory approval.
If approved, some of the partnership benefits would include a joint business agreement on select Canada-Latin American routes, coordinated sales and distribution, and expanded codeshare cooperation. It also would "enhance the customer experience to provide more seamless travel" and strengthen frequent flyer cooperation by "delivering increased earning and redemption opportunities and improved recognition across both networks," according to the companies.
"The Canada-South America market is accelerating, and we are investing to capture this momentum, expanding into key markets such as Lima, Santiago and Rio de Janeiro, with further growth ahead in Quito while building on our strong foundation with Avianca through Star Alliance and our long-standing collaboration with Gol to shape connectivity across the Americas and unlock greater value for our customers," Air Canada VP of revenue management, partnerships and international affairs Mary-Jane Lorette said in a statement.